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Being an investment banker who had worked on numerous not-so-small logistics transactions and also developed a habit to study the logistics market as a result, this article summarizes my findings in the PRC's logistics industry about its latest warehouse revenue data, the decrease in demand for long haul truck transportation, and the decline of export trade, and how these factors have contributed to the current state of the logistics industry in the PRC (and the immediate need for further digitizing the logistics community).

1. Demand for long-haul trucking/transportation over distances of 500km or more has experienced a significant decline of at least 20% in the past 12 months. This shift in demand can be attributed to changing market dynamics and evolving business needs.

2. Shorter routes of around 200km have emerged as a preferred alternative, with a growing emphasis on point-to-point transportation to maintain efficient business flow. This shift allows for quicker and more direct deliveries, hence optimizing logistics operations.

3. Warehouse rental revenue in major cities in the PRC has seen a substantial decline of 40-50%. This decline can be attributed to (i) global economic slowdown, and (ii) an increase in the quantity of warehouses being built, leading to a greater supply of available space.

4. The increase in warehouse supply in the PRC has created opportunities for logistics business owners who have access to inventories. By efficiently combining different inventories in each truckload, these logistics businesses can maximize efficiency and lower costs simultaneously.

5. The changing nature of logistics revenue sources, which are becoming more scattered and diverse, necessitates the adoption of digital systems by logistics companies (not only in the PRC though). These systems enable cost control and responsiveness to the ever-changing demands in a more and more dynamic business environment.

6. In my opinion, digitization, which was once only necessary (or even a luxury to some people) for major logistics companies, has now become a survival necessity for ALL logistics companies. The ability to leverage digital technologies and systems is crucial for staying competitive in the evolving logistics landscape.

By understanding and adapting to these market trends, logistics companies can position themselves for sustaining their businesses in a rapidly changing industry. The need for a more integrated IT system is essential to enable logistics business owners to respond to ever-changing market conditions. The most resilient logistics companies are staying focused on growth, making bold moves where required, and remaining flexible enough to respond to ever-changing market conditions.