Logistics Industry Collapse: 13 Million Truck Drivers Vanish, 800 Thousand Companies Bankrupt

In the past three years of the pandemic, using combined trucks for coal transportation was indeed profitable, as hyped by internet celebrities. Last year, a set of such vehicles could earn a profit of 10,000 yuan in just three days by transporting coal from the Xinjiang Hami mine to the Yumen Railway Station in Gansu. The distance covered is about 1500 kilometers, with fixed costs of 13,000 yuan for highway tolls and diesel fuel. Based on the transportation rate at the time of 360 yuan per ton, the income for carrying 72 tons of coal would be nearly 26,000 yuan. With two drivers working for three days, the total cost of wages is 2400 yuan, leaving a profit of about 10,000 yuan.

However, since February of this year, the price of coal has plummeted, and demand for coal transportation has decreased. The transportation rate for delivering coal from the Xinjiang Hami mine to the Yumen station has dropped to 250 yuan per ton, and the income has also fallen to 18,000 yuan. Due to delayed loading, it now takes five days for a round trip instead of three days, with costs of 13,000 yuan for tolls and diesel fuel and a wage cost of 4000 yuan for two drivers. Thus, the profit for one trip is only 1000 yuan, and a set of “mother and child” trucks can only make six trips in 30 days, earning a profit of only 6000 yuan a month.

Over the past 30 years, diesel prices have increased from 2 yuan to 8 yuan, and the annual toll fees for drivers covering 100,000 kilometers have increased to at least 50,000 yuan. In the 1990s, with goods in short supply, if a truck parked at a parking lot, the cargo owner would come directly to the truck to find transportation. However, now the freight rates are so low that they are almost unimaginable. Faced with increasing income pressure, a significant proportion of truck drivers choose to quit. According to a press conference held by the State Council Information Office on November 3, 2020, the number of truck drivers has dropped sharply from over 30 million in 2016 to 17.28 million or even fewer.