Long Haul Trucking in China

Friday, August 4, 2006 9:20

With WTO regulations widening each year, the market for logistics services has widened significantly since companies like UPS and TNT entered into their first joint ventures. Each year has brought the international providers more access to what many believe is the next “big” market for logistics services in the world.

Through our research, we have found that while many firms are able to see the pot of gold at the end of the rainbow, many are still having difficulty in standing up their operations in China.

  • Enforcement and interpretation of national regulations depends on the area
  • Domestic Providers are gaining strength and are improving service levels
  • Road permits are costly in terms of time and effort, and many areas are still restricted (air, DG, etc)

If that were not enough, the movement of international manufacturers inward is only adding more pressure as many international firms know that they either serve their clients or risk losing them to Chinese providers who already have networks established.

For more on the study and a few of our findings, please download our Long Haul Review

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3 Responses to “Long Haul Trucking in China”

  1. All Roads Lead To China » Map: China’s Tranportation Network says:

    August 15th, 2006 at 10:36 am

    […] Posted on Monday 14 August 2006 We hope you enjoy this week’s map entitled China’s Transportation Network. Since the mid 1990s, the transportation network in China has grown and evolved immensely to support the growth of the country. The government has spent large sums of money to build sea ports, airports, rail heads, subways, and even a magnetic train in Shanghai to create what will become one of the world’s most complicated networks It will take time, but with 18-20% of the cost of goods sold in China coming from logistics costs and with billions of people on the move, the need is there. fortunately, progress can be seen everyday as new subway lines open in Shanghai and Beijing, airports open in third and fourth tier cities, and national higway systems are built to support long haul trucking For many in the transportation and logistics industry, this is an exciting time for everyone as every day is a different one and the opportunities (and frustrations) seem sometime limitless… […]

  2. All Roads Lead To China » Forbes Review of Logistics Players in China says:

    October 3rd, 2006 at 2:00 am

    […] There are companies like APL and Maersk that will continue to focus on outbound traffic consolidation and companies that will focus only on inbound freight forwarding. however for DHL, UPS, FedEx, and TNT, the game is much more complicated. Creating a China-wide network (owned and outsourced) that will service global contracts and capture new ones is the brass ring that they are all reaching for. For more information, I encourage readers to view our reports on the logistics industry (Long Haul Logistics,Changing Nature of Distribution, and Logistics Overview ) and our map detailing China’s Domestic Transportation Network In addition, 3pl Wire and Asia Logistics Wrap are great blogs, and the China Supply Chain Management Council also offers very good information online Full disclosure: I was a former member of Emery Worldwide and UPS and I continue to work with providers in China and advise manufacturers in this area. […]

  3. Learn Chinese says:

    July 2nd, 2007 at 9:02 am

    But RMS (China Post) is still the largest provider in China. UPS and TNT just is popular in some multi-nation companies.