(Yicai) May 19 -- China’s cold chain logistics market expanded 4 percent in the first three months from a year earlier, driven by the rapid growth of fresh food e-commerce, direct-from-source shipping and instant retail as well as the rollout of new direct transportation routes, according to the latest data.

China’s cold chain logistics market was worth CNY2.2 trillion (USD306.2 billion) in the three months ended March 31, the China Federation of Logistics and Purchasing said yesterday.

Of this, online sales of fruits and vegetables soared 15 percent year on year while in-store purchases of frozen goods surged 10 percent, the federation said. The fruit and vegetable wholesale market stayed flat, but vegetable sales climbed 5 percent.

The rapid growth of online sales of fresh produce, direct shipping from production sites and rapid delivery reflect the crucial supporting role of cold chain logistics, Qin Yuming, secretary-general of the federation’s cold chain logistics professional committee, told state broadcaster CCTV News.

As summer approaches and fresh produce enters its peak season, demand for cold chain logistics is expected to keep climbing in the second quarter. Growth is likely to outpace last year, and the market should continue expanding.

Cold chain logistics-related infrastructure maintained steady growth in the first quarter thanks to increased government subsidies. Sales of electric refrigerated trucks, for example, jumped 71 percent in the first quarter from a year earlier to 2,969 autos. These vehicles now make up 27 percent of all refrigerated trucks, an increase of 10 percentage points from last year.

The opening up of more direct air routes and the ‘rail+cold chain’ transportation model has also made it easier to bring high-quality food products from abroad to the tables of Chinese consumers.

For example, Chengdu’s imports of fresh deep-sea salmon used to be shipped to Shanghai and then transported overland to the capital of southwestern Sichuan province. However, in December last year, China Eastern Airlines opened a cold chain fresh produce hub in the city. Now, freshly caught salmon from Santiago, Chile can be flown directly to Shuangliu International Airport, a 15-minute drive from downtown Chengdu.

The distance from Santiago to Chengdu is around 20,000 kilometers, said Zhang Dongdong, project manager of the Shanghai-based carrier’s cold chain fresh produce hub. The new air route means that people living in Chengdu can eat salmon from the other side of the world within 48 hours of it being caught.

Sichuan province’s imports of fresh produce grew quickly in the first three months, according to data from Chengdu Customs. Of this, the import value of chilled salmon almost tripled year on year to CNY330 million (USD45.7 million) while that of fresh shrimp skyrocketed 12-fold to CNY800 million (USD110 million),

Editor: Kim Taylor