Logistics firms brace for tougher times

There seems to be no respite for logistics companies in China as they appear to be headed for tougher times.

The companies are already grappling with lower profits as demand shrinks due to the economic slowdown. Adding to their problem now is the proposed introduction of a fuel tax.

"The fuel tax will definitely increase our costs," said Liu Wu, president of PG Logistics Group Co Ltd. The Guangdong-based firm is one of the largest private logistics companies in China.