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Can the coal freight rate rise if it is so low? What should cardholders do?

author:Truck E-Family

In recent years, with the sluggish enthusiasm of the coal market and the large number of gas vehicles joining the transportation market, the price of coal transportation has continued to fall. Entering 2024, the truck E family found that the freight rate did not rise sharply, so how will the freight rate perform in the remaining 2024 and the future?

The enthusiasm for coal trading is not high, and the price is difficult to meet the sharp rise

It is not only the price of coal that affects the price of transportation, but also the enthusiasm of the market. In the past, the price was high in the peak season, but the demand was large, and the price in the off-season was low, and all parties hoarded goods, which would contribute to the situation that transportation was hot and even difficult to find, and the freight rate naturally rose.

Can the coal freight rate rise if it is so low? What should cardholders do?

In terms of output, according to the 2024 coal production data and annual work targets revealed in the local and provincial work reports, except for Shanxi Province's coal production reduction this year, the other four major coal producing areas have plans to increase production, and it seems that they are still quite dynamic.

However, the truck E family understands that in recent years, due to the continued downturn in the real estate industry and the suspension of infrastructure investment policies in some provinces, there is a tendency to excess coal production. There are fewer and fewer enterprises that choose to hoard coal, and power companies with extremely high demand for coal in summer and winter also use a large number of low-cost and efficient methods such as railways and water transportation, and the coal automobile transportation market is gradually shrinking.

Can the coal freight rate rise if it is so low? What should cardholders do?

The automobile transportation market has been squeezed by low-cost railways and water transportation. The online of a large number of gas vehicles in the market is to make the freight is pressed to the limit, and the shrewd shippers transfer the advantages of low transportation costs of gas vehicles to themselves, and bid at the operating costs of gas vehicles, resulting in meager profits for cardholders who drive gas, and cardholders who drive diesel cars are even more unprofitable, and even "start to lose money". In this case, it is unlikely that a significant increase in freight rates will be expected.

The automobile transportation market is against the enemy, how to deal with cardholders

Weak demand, cold transactions, and low freight rates make it sound like it's out of the question. However, cardholders don't need to be too anxious, the small and medium-sized coal mines in the mainland are widely distributed and numerous, because of the good flexibility and adaptability of road transportation, the demand for short and medium distances is basically based on road transportation, which can still ensure a considerable amount of business needs.

But it's inevitable that the market will become smaller and more competitive, and this is true in all walks of life today. If it is a new card friend, the truck E family recommends that try not to join the coal road transport industry, after all, with the increasingly strict requirements of environmental protection and green requirements, and the "dirty" inseparable coal road transport, its market share is almost a foregone conclusion, and the market has become saturated, and the freight rate is not high. We have to admit that the golden age of the coal road transport industry is gone.

Can the coal freight rate rise if it is so low? What should cardholders do?

What about cardholders who are already in it and have put their wealth into coal transportation, how should they deal with themselves? The truck family believes that there is only one way to improve operational efficiency. With lower shipping costs and large profits from a single trip, there is no longer a situation in which there is a lot of profit in a single trip, but in this case, if you can improve efficiency and increase the operating mileage, you can still have considerable revenue.

For example, the annual operating mileage will be increased from 200,000 kilometers to 30 or even 400,000 kilometers. The profit of a single trip remained unchanged, but the total annual profit increased significantly. So how do you do that? The first is a change in attitude. Repair it if it is broken, and it is a common concept of cardholders in the past, but in subsequent use, frequent maintenance not only increases the cost, but also greatly drags down the operational efficiency, and does not save money on the whole.

Therefore, it is very important to establish a correct concept of car maintenance and use, and develop the habit of regular inspection and regular maintenance. In addition, cardholders should also update the concept of car selection, and should pay attention to the operating costs of the whole life cycle, rather than pursuing a quick return on investment. To put it simply, if the car is cheap, it will cost more to maintain and repair, and the money spent on maintenance may exceed the difference with your car; The car is expensive, although the price of the car is high, but in the whole process of use, there are fewer problems, the failure rate is low, the operation efficiency is lower, and the price of the car is higher, and more profits can be obtained.

Write at the end

The reduction in freight rates is difficult to reverse, and the competition in the industry is becoming more and more fierce. However, scientific and efficient operation concepts and methods can still help cardholders to evolve in the industry, conform to the trend, and continue to create wealth.

Do you agree with the views of the truck e-family? Feel free to discuss.