SCI Investigation on Logistics Recovery in Rubber Tire Market

SCI99

2020-03-10

导读：SCI Investigation on Logistics Recovery in Rubber Tire

SCI Investigation on Logistics Recovery in Rubber Tire Market

As China’s public health emergency is contained, logistics networks are recovering across China. SCI investigated some enterprises in rubber tire industry and analyzed the recovery of logistics networks, the changes of transportation expense and transportations situation.

From February 24, 2020 to February 28, SCI investigated a sample of 104 rubber tire companies, including 48 tire manufacturing companies and 56 trade companies. 56 of those companies are based in East China, making up 53.85% of all companies in the sample, while 24 companies are located in North China, making up 23.08%. Others are from South China, West China and Northeast China. To be specific, companies from Shandong, Jiangsu and Zhejiang make up 29.81%, 14.42% and 9.62% of all companies in the sample respectively. The rest of them are from Guangdong, Yunnan, Shanghai, Hebei, Fujian and Beijing.

As shown by SCI’s investigation results, 55% of those companies reported that the local logistics networks have recovered to 80% of the normal level. 25% of those companies said that the logistics networks have made a 70% recovery. A 60% recovery was reported by 16% of those companies. Only 4% of companies said only 50% of local logistics networks have recovered by far. Those results imply that China’s logistics networks have recovered significantly. Traffic control on national-level and provincial-level highways has been lifted in most of Chinese regions, and transport vehicles can come and go freely. Nevertheless, roads in villages and towns are still guarded and controlled.

In comparison with that before China’s Lunar New Year, 59% of tire companies in the sample spoke of no change of transportation expense. 24% of companies said the expense increased by 10% or so. Only 2% of companies saw their transportation expense move up by 10%-20%. Most market players said there was no significant change to their transportation expense. Some market players remarked that the transportation expense moved up slightly due to a shortage of transport vehicles. Nevertheless, some people said the expense decreased marginally because governments froze highway tolls.

As shown by SCI’s investigation results, the transportation services have basically recovered in most regions of China. 43% of companies said it is easy to find transport vehicles, and the intra-provincial transportation has basically recovered. 43% of companies said the inter-provincial transportation may have some problems. Only 14% of companies found it hard to find enough transport vehicles. As the public health emergency is contained, the transportation services have almost recovered. Since the transactions are only done in a limited manner, the current transportation services are capable of meeting the demand. The situation will get better as time passes by.

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