China's logistics output has been growing at a stable pace during the first five months of the year. That's according to the China Federation of Logistics and Purchasing. The federation also says the sector is facing challenges involving efficiency and profitability.

China's logistics output totaled 86.4 trillion yuan, or 13 trillion dollars in the January to May period. That represents 6.1% growth from a year ago. It also marks a 0.2-percentage-point widening of the level recorded in the first four months of the year.

At the same time, logistics costs continued to grow at a low level, totalling 4.2 trillion yuan, or 630 billion dollars during the same five-month period. That's up 2.6% from a year ago, and a widening of 0.1 percentage points from the January-April level.

The CFLP also pointed out that the country's logistics cost to GDP ratio, a key indicator of industry efficiency, is still trailing developed countries.

"The ratio is now 16 percent. That's still twice the levels seen in developed countries. On the supply, though the Chinese logistics industry has rather large capacity, some structural issues are still there, such as over-capacity, and lack of high-end services," said He Liming, president of China Federation of Logistics & Purchasing.

In the meantime, the CFLP says, cut-throat competition, low service prices, and rising costs are dampening the whole industry's profitability.

He also said, "Many businesses are feeling the pinch of t downward pressures. Competition is fierce,  prices are down, and margins are shrinking. Overall, challenges and opportunities are both there for the industry."

The association says the sector is embracing a critical period for strategic adjustment.