Follow Up Of Wuxi Viaduct Rollover Accident: Overloading Of Rivers And Lakes, End Of Steel Trade Logistics Or Shuffling

It took about 45 minutes to drive about 1.3 kilometers.

The congestion of the North Ring Road has become the norm since the rollover accident of K135 Road on the 312 National Road in Wuxi in October 10th and the viaduct rollover accident on the tin Harbour Road in the evening of October 10th.

Out of the North Ring Road, the long queue on the both sides of the North Ring Road can not see the marginal traffic. He slowly drank a cup of tea, and dismisses the proposal of the steel trade owner to buy his own truck to pull steel products. Although the two have worked together for 3 years, MI also has 2 freight cars.

In the past few days, Lu boss will never say "freight price increase" to the boss, he will say, "sorry, this will not be a car." But if the customer voluntarily increases the price, Lu boss will immediately answer "now find a way to help you find a car". When rice boss got up to answer the phone, Lu boss whispered to the twenty-first Century economic report reporter: "there are too many tricks in it."

Lu Mi two discussions on Logistics fees are being staged between logistics companies, steel traders and metal processors. Now, Jiangsu province is carrying out "hundred day regulation" for overloading and other behaviors. How long will the competition between related links in these industrial chains last and when will they achieve equilibrium?

Huge profits of overloading rivers and lakes

In the current ongoing action to control the super operation, in twenty-first Century, the economic report reporters interviewed recently in a number of steel trade markets in Wuxi. "No one dared to venture again. The original car changed three times." Some owners said.

A change of three times has brought about a price increase of more than 3 times the cost of logistics. In other words, the original nuclear load compared with the more common overload is more than 1:3.

Several owners told reporters that in the 5-15 km range, the price given before was calculated to be 8-8.6 yuan / ton, and now it has risen to 20-25 yuan / ton. What's more, a stainless steel trade dealer said that the logistics company reported a price of 1400 yuan / volume from Zhangjiagang port wharf to its Wuxi warehouse about 70 kilometers, with a volume of about 25 tons per volume.

But in the steel trade market, regardless of the weight or the times, for logistics enterprises, the cost of pulling and sending back and forth is the same, and in order to get more profits, it will be more biased. Therefore, the heavier the single component is, the more money it will earn. This is the fundamental reason for overloading.

Although the accident investigation team has not given more information to the public at present, it has been identified that the involved overloading transport vehicle belongs to Wuxi successful Transportation Company Limited.

Wuxi, the country with a total economic volume of over trillion, is the largest distributing center for stainless steel trade and processing in China and the world. The local steel products entering Wuxi are mainly transported by way of water transportation to the two most important ports in the middle and lower reaches of the Yangtze River in Jiangyin and Zhangjiagang, and then transported to the Wuxi within 100 km by the highway. Under such industrial distribution, logistics enterprises such as successful transportation were born.

The successful transport company, known as the "successful Department" by a local insider, has not been established for a long time to enter the "logistics arena". However, it has a strong competitiveness in the steel transportation route between the two major ports and the Wuxi steel trade market. The success of the actual controller is quite lucrative.

People familiar with the matter told the twenty-first Century economic news reporter that the secret of success lies in overloading. Before the accident, the success department had 86 large vehicles.

Steel transport vehicles, which are heavily modified and reinforced by "100 ton king" vehicles, make the quotations of "successful Department" lower than those of the same industry and get more market.

According to the preliminary estimates of a number of local steel traders and logistics practitioners, each overloaded truck can bring about 30 thousand yuan profit per month for the "success system" and remove the factors affecting vehicle maintenance and other costs, with a profit of about 2 million 500 thousand yuan per month for 80 vehicles.

"Although we were overloaded before, we never dared to do so." After estimating the data of 2 million 500 thousand yuan, a logistics practitioner who owns 6 cars uncontrollably leaning back to the sofa, slowly said.

Steel trade logistics or shuffle

The rice boss is the largest stainless steel processing company in Wuxi's Dongfang steel trade market. The annual processing of stainless steel products is more than 100 thousand tons. In addition, he has hundreds of thousands of tons of steel in and out of the steel trade every year.

In order to reduce the cost of logistics, he cooperated with a number of steel transporters, which was as dispersed as the steel mills he bought for steel products. The annual purchase volume of steel plants in Jiangsu was less than 2.

According to the volume of business and logistics prices in recent days, the boss estimated that more than 50 thousand yuan a month would be spent on transporting steel. "It's not a big deal. It's not enough to buy a car on its own."

But in Chen boss's view, such boss of rice boss underestimated the "doorway" in steel transportation. Chen came from Suqian. He used to be a driver in the Dongfang steel trading market for 8 years. He started his own business 4 years ago, and now he has 5 cars. In the 10 minute conversation with our reporter, Chen's two mobile phones kept on answering the phone, saying that there was no car, and later said that they could help the customer find the car and work well between the virtual and the real.

In Dongfang steel trade and other markets, logistics prices also bring other business opportunities. After the news came out, such as Mi Bosheng and other steel traders who wanted to buy their own cars for transportation, the truck sales enterprises sent a large number of salesmen to market activities, or distributed leaflets or door-to-door sales, and said there were more suitable models for steel transportation. With the same purpose, there are various insurance companies. They take the viaduct rollover accident as a point of persuasion, and recommend to the owners more competitive property insurance and life insurance policies.

"The steel transportation market has entered a period of shuffling." Chen Da, President of Jiangsu iron and Steel Service Industry Association, analyzed the twenty-first Century economic report reporter. Before the operation of a large number of hidden rules, it would become transparent under the supervision of the government to promote more standardized development of logistics enterprises.

Chen boss thinks, because the government has strengthened the overloading control from the source, the current steel transportation is mainly scattered by small businesses or individual businesses, and can not earn money by overload. Moreover, the vehicle modification plant has not been able to reinforce the vehicle according to the requirements of customers.

"Some member enterprises have reflected that under the situation of governing the super market, the transportation cost of steel entering the Jiangsu has increased substantially, because the major steel mills in China are outsourced in long-distance transportation, especially across provinces, and the end consumers will bear the cost." Chen said that the logistics cost of China is relatively high in the developed countries.

According to the market outlook and strategic planning analysis report of China's steel logistics industry, the cost of logistics in China's iron and steel industry is about 12%. According to the average level of the industry, transportation costs accounted for 58.9%, warehousing costs accounted for 2.9%, and distribution and logistics processing costs accounted for 12.6% and 7.8% respectively. Transportation cost has become an important way to reduce costs and increase efficiency for steel enterprises, and is also the key to control logistics costs.

M told the twenty-first Century economic news reporter that by the end of 2019, the increased logistics cost will be self digested, and that will be followed by market or processing fees, or the price of finished products and semi-finished products will be appropriately increased.

Expectation of the largest steel trade market

In the interview of 21st century economic reporter in recent days, most steel traders said that they had communicated with upstream and downstream customers, "not to be the first price hiker".

In addition, the impact of the accident and the government's strong overrun involves the overall operation efficiency of China's largest stainless steel trade market.

According to the twenty-first Century economic report, the stainless steel trade and processing market in China and the world is concentrated in Jiangsu Wuxi and Guangdong Foshan, which occupy 90% of China's stainless steel market and 80% of the world's market. However, Wuxi's steel trade market has a larger scale, more variety and wider use, and mainly concentrates in the industrial field, attracting about 30 thousand employees.

This is closely related to the developed manufacturing industry in the Yangtze River Delta and the Pearl River Delta region. Wuxi, because of its natural advantages, can radiate the whole country and is very suitable for the agglomeration and development of the steel trade industry chain and products.

"Now the overload phenomenon in the Foshan market is gone, and no one dare venture." Mr. Chen, a business owner from Foshan to Wuxi, said.

Only the Dongfang steel trade market, the monthly access to steel more than 500 thousand tons, and other markets and so on will not be less than one million tons / month, the largest variety of steel processing enterprises in Wuxi annual income of more than 10 billion yuan. Thanks to the formation of the market, many stealth rich businessmen have also been born here.

Another practitioner, Mr. Wei, said that 7 of his business was concentrated in the Yangtze River Delta region, mostly in industrial enterprises.

Another reason for the large-scale agglomeration is the integration of the Yangtze River Delta. A number of owners told reporters that Shanghai is the leader of the Yangtze River Delta, but because of the different division of labor, customers buy stainless steel products from Wuxi to buy more than the local purchase in Shanghai. In addition, Wuxi has more obvious advantages in warehousing of steel products. At present, stainless steel futures have been listed on the Shanghai stock exchange, which is the biggest advantage of Wuxi in the development of stainless steel market.

Now, these steel traders and owners who are spontaneously gathered are more eager to take the initiative of Wuxi as the initiative, strengthen the governance of the hard environment around the market, demolish illegal structures, build an open market mode of hardware, and enhance and optimize the business atmosphere as a whole.

"According to the directive spirit of the state ministries and the provincial Party committee of Jiangsu Province, the accident investigation team is weighing and considering all the problems. Optimizing and improving the traffic capacity of the whole city is one of the required items." A Wuxi government official told reporters on twenty-first Century economic report.

At present, Jiangsu, Suzhou, Nanjing and other cities are checking the anti overturning of the viaduct and other indicators, waiting for further reinforcement measures.