The petroleum and chemical industry serves as a cornerstone of China's national economy, characterized by a vast array of raw materials and products that span global markets. This industry demands frequent transportation, diverse specifications, and stringent security measures. Traditionally, many domestic chemical companies have managed both production and sales, along with their own fleets and warehouses. However, this "big and comprehensive, small and complete" model often leads to inefficiencies in resource utilization, resulting in significant waste of both material and human resources.
Globally, there is a growing trend toward outsourcing logistics functions such as transportation, warehousing, and even sales to specialized third-party companies. This shift has helped develop a value-added service industry that benefits all stakeholders. Today, the producer services sector accounts for over 50% of the global service industry. As these services evolve, international competition has shifted from cost-based strategies to more complex supply chain-driven competition, emphasizing efficiency, technology, and brand strength.
To accelerate the growth of China’s chemical logistics industry, it is essential to identify and address the root causes of its slow development. Currently, the industry is still in its early stages, with limited numbers of third-party logistics providers and relatively small-scale operations. Several factors contribute to this situation, including a low level of marketization, incomplete service capabilities, broad business scope, limited international exposure, and insufficient demand for productive services. However, the primary issue remains a lack of momentum and necessary policy support.
Government policies play a crucial role in shaping industrial development, either promoting or hindering progress based on their direction. At this year’s Two Sessions, logistics was highlighted as a key focus for the service sector. In Shanghai, the Heavy Chemical Division of the Municipal Economic Commission has announced plans to prioritize the development of producer services in petrochemical and metallurgical industries. The Shanghai Chemical Industry Park Logistics Industrial Park, located on the shores of Hangzhou Bay, is already operational, with fully completed infrastructure and dozens of companies, including Shanghai Fubao and Shanghai Huayi Tianyuan Chemical Logistics Co., Ltd., now active in the area.
This park aims to become an international chemical logistics trading hub, a center for hazardous chemical management, a storage and transportation coordination center, and a bonded logistics hub. It has emerged as a key distribution center in the Yangtze River Delta region, significantly boosting Shanghai’s chemical logistics development.
While most provinces and cities have developed their own logistics strategies, only well-considered and practical policies based on real-world conditions can truly drive sustainable growth. As the central government emphasizes the importance of logistics as a key service industry, local governments must tailor their support policies according to their specific circumstances, allowing chemical logistics to grow steadily and effectively.
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