The new transportation regulations are about to be implemented. How will it affect the steel industry?
On August 30, 2016, the Ministry of Communications officially issued a document on the “Regulations on the Management of Over-limit Transport Vehicles on Highways”. This regulation will be formally implemented on September 21, 2016. The “Regulations” are also the legal basis for the later road administration departments to enforce the law. . The documents published on the website of the Ministry of Transport are four pages long. In short, the important content can be simplified into the following five points.
1. It specifies the limits of the outer dimensions of transport vehicles that exceed the limits.
2. It stipulates the total weight limit of transportation vehicles exceeding the limit.
3. Special distinction is made between 6X2 tractors and 6X4 tractors in six-axle automobile trains, emphasizing that the total weight limit of 6X2 tractors is 46 tons.
4. Large-size transportation vehicles shall go through relevant licensing procedures in accordance with the law.
5. What are the specific penalties after the vehicle exceeds the limit?
From the detailed documents, it can be roughly seen that the main impact on the steel industry’s transportation is the reduction of overload standards. In the future, 6.8-meter trucks can carry up to 10 tons and 9.6-meter trucks (four in the front and four in the rear, and eight in the rear. 18 tons), the 13-meter semi-trailer can hold up to 32.5 tons! Gone are the days when the whole vehicle was loaded with 40 tons and 4.5 meters high.
Then with the lowering of the standard, the cost of steel transportation is bound to rise, such as the original total weight (55T)-wagon (16.5T) = actual load (38.5T), taking 100 yuan/ton as an example, the freight is 3850 yuan /Car, now the total amount of freight remains unchanged, the actual load is: total weight (49T)-wagon (16.5) * 4/4.5 = actual load (28.8T), the unit price of freight is 3850 yuan ÷ 28.8T = 133.6 yuan. The unit price of freight is increased by about 33.6%. Coupled with the corresponding increase in taxes, the increase in freight rates becomes inevitable.
At present, steel mills, traders, steel markets, and warehouses have received notifications from local road administration departments, and most of them have implemented the New Deal from the evening of the 20th. Then, with the increase in the cost of automobile transportation in the steel market, it will inevitably bring many changes to the steel market.
First of all, rising transportation costs have brought about increased delivery costs. Except for some long-distance resources that can be converted to fire and water transportation, after the cost of still using automobile transportation has increased, coupled with the reduction in tons, the flow of resources has slowed down, storage costs have increased, and the cost of arrival will increase in the later period.
Second, the project settlement mode will be changed. In the past, due to low transportation transactions, steel mills or traders engaged in engineering distribution included the freight in the cost of the steel settlement model. In other words, the profit is not high, so after the increase in freight, the profit is reduced, and the settlement mode of the terminal project may change accordingly in the later period.
In addition, the short-term may drive the price of steel to rise, the current profits of the transportation industry and the steel trading industry are already sluggish, but with the implementation of the new national standards, the market will be disgusted in the short term. From the current market understanding, transportation in some regions The industry may suspend business and wait and see, or there will be short-term traders with goods but no cars, and terminals without cars and no goods. Under the influence of this, traders with self-owned cars may increase prices.
Finally, let me summarize in one sentence. The implementation of a new industry national standard will touch the interests of some people in the short term, but as time goes by, it will surely bring new development to the industry.