Enjoying fresh produce at affordable prices from tens of thousands of kilometers away is becoming commonplace for Chinese consumers.
On the morning of November 20, 2024, a China Eastern Airlines flight delivered 76 tons of fresh Chilean cherries from Santiago, Chile, to Shanghai's Pudong International Airport. This allowed Chinese consumers to enjoy fresh fruits less than two days after they were picked.
This example was highlighted in a report by Vietnam Ministry of Industry and Trade (MOIT) regarding China’s logistics market. The report indicates that as the logistics system becomes increasingly efficient, Chinese consumers have more access to fresh foods from distant locations.
Beyond Chilean cherries, Thai durians, American lobsters, and Russian king crabs are also making their way to Chinese dining tables through an increasingly modern international cold chain logistics network, which the country has been developing for years. The aforementioned flight is part of these efforts, with Chinese airlines significantly increasing the number of fresh produce transport flights over the past decade—from 2 to approximately 350 flights in 2024.
In China, the e-commerce boom for fresh food and the emergence of home delivery services have driven demand for cold chain logistics services. According to China Internet of Things Cold Chain Committee, the consumption of fresh food and food services were the primary drivers of cold chain logistics volume growth in the third quarter. Fresh fruit sales recorded an impressive growth rate of over 18% in the first nine months of the year compared to the same period last year.
The sector's growth potential has also driven China to invest in infrastructure, particularly cold storage facilities. According to preliminary data from MOIT, investment in cold storage construction projects rose by 7,5% in the first three quarters of 2024 to approximately $5 billion. The third quarter saw the most significant increase, coinciding with the peak harvest season for fruits, vegetables, and frozen foods.
Not only fast but also green
The development of cold chain services has spurred growth in the refrigerated truck service market, a key infrastructure element for ensuring the transport and quality of fresh goods. Since 2016, sales of refrigerated truck service in China have consistently increased alongside rising cold chain logistics demand. What was once considered a "niche" market has steadily expanded.
The report highlights the Chinese government’s focus not only on developing the fresh goods supply chain but also on accelerating green transitions to achieve low-carbon goals.
Subsidies have boosted sales of new-energy refrigerated trucks, which saw over 230% growth in the first three quarters of this year compared to the same period last year. For nine consecutive years, sales volume has risen. Clean-fuel refrigerated trucks are increasingly replacing traditional models in major cities, with 100% electric vehicles accounting for 70% of the market.
Additional incentives include granting new-energy refrigerated trucks greater road access than traditional models, continually improving charging infrastructure, reducing battery costs, and offering subsidies for vehicle upgrades. These policies are rapidly transforming new-energy refrigerated trucks into a dominant force in China’s cold chain logistics sector, making the industry not only more efficient but also greener.
Despite significant progress, the sector faces challenges that could serve as examples for Vietnam. High operational costs due to substantial investment in vehicles, infrastructure, and preservation technologies remain an issue. Poor coordination among supply chain stakeholders affects quality assurance, and the sector remains heavily reliant on government policies.
According to MOIT, advanced, smart, and green elements will be key development directions for Vietnam’s logistics market, including refrigerated truck services. As such, Vietnam should prepare, learn from China's experience, and collaborate with Chinese partners to capitalize on emerging opportunities in the rapidly growing cross-border supply chain sector.
Source: https://vietstock.vn/2024/12/logistics-chuoi-lanh-nhin-tu-trung-quoc-va-bai-hoc-cho-viet-nam-768-1255350.htm
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