China's Chemical Transportation Market Stabilizes After COVID-19 Impact, Says Beroe Inc
Source: PR Newswire
Raleigh, North Carolina, August 31: With more than 80 percent of drivers back on duty post the outbreak of Covid-19, the demand for road freight is slowing down and the supply capacity is reaching the sufficiency level, both of which are expected to stay stable, resulting in stabilized chemical transportation market in China.
China's road freight market size was estimated to be around 9-10 trillion Yuan in 2020. The market size of the hazardous chemicals transportation industry exceeded 800 billion Yuan with road transportation accounting for more than 50 percent. There were 8 million heavy trucks and over 18 million light and medium trucks available on the road.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE.Ai: https://www.beroeinc.com/beroe-live-ai/
The chemical logistics market in China has largely changed, with the suppliers inclined to engage at existing rates for long-term contracts. Capacity constraints have forced many suppliers to agree only when engaged in multiple assignments. An assessment of the chemical logistics market in China reveals that the supplier capacity is set to continue unabated till the end of the current year 2021. Besides, the demand for freight is slated to increase marginally by 2-3 percent by the end of the year; the fuel prices are expected to go up in 2021 compared to 2020. Apart from these, the increased payout is expected for truck drivers in the range of 3-5 percent.
Large supply companies are now engaging with more than one 3PL company to cater to increased demand. Dangerous good transportation has been increasing year on year, thus, explaining the rise in vehicle sales. Reports of the hazardous chemical transport market in 2021 reiterate that medium-duty trucks have gone up in number while heavy-duty and light-duty trucks will be seen less on the roads. However, the manufacture of tanks and vans to transport dangerous goods remains unchanged.
A SWOT Analysis of the Development of Green Logistics in China highlights the country's intent to focus on green logistics is largely thwarted by a lack of actionable awareness. The reluctance on the part of many companies to adjust to new concepts or adhere to the proposed guidelines is a big constraint. However, there are numerous opportunities as well. With the international forums embracing sustainable models, the development of green logistics is an opportunity for companies in China to enter the international markets. This will expectedly impact the country's transportation market and the whole warehousing and fulfillment ecosystem.
Rising prices, including more driver wages, fuel costs, and supply of trucks, are other broad factors affecting truck transportation costs in China in 2021. However, this does not pose an impediment to truck supply and services. Prices are expected to settle down with reduced Covid-19 impact worldwide.
- Drivers are back to work despite constraints due to the raging Covid situation.
- The supply of logistics service providers remains sufficient though demand continues to be lagging.
- Domestic trucking services have improved with demand from manufacturing units and ports opening to do business.
- Domestic road freight shipment services continue with stable supply though the situation is expected to suffer the impact of heavy rainfall.
- There’s a favorable demand and supply situation due to continued demand for bulk materials and increased prices of raw materials.
The report from Beroe includes:
- China Transportation Market Overview
- Key opportunities in China’s logistics market
- Demand analysis and management
- Impact of fuel prices on supply services
- Overview of Covid-19 Impact on Trucking
- Freight Index and Trucking Cost Structure
About Beroe Inc
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions — leading to lower costs, greater profits, and reduced risk. Beroe has been providing these services for more than 15 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies. For more information about Beroe Inc., please visit https://www.beroeinc.com/.