Chinese demand for logistics services is slowing as the industry's costs have continued to increase, according to the China Federation of Logistics and Purchasing (CFLP).

The value of China's logistics industry rose 10 percent year on year to 67.3 trillion yuan ($10.59 trillion) in the first five months, 3.7 percentage points from the same period last year. Meanwhile, the sector's costs during the first five months went up 12 percent year on year to 3.4 trillion yuan ($534.6 billion).

Despite the slackening demand and declining profits, the CFLP expects growth in the sector to increase faster in the future due to several factors, including China's recent move to encourage private capital to be invested in the logistics sector.