Ningbo container truck industry in full loss, individual drivers lose 200 yuan per trip

Recent weeks have seen a short-lived surge in port cargo volumes, but container truck drivers are struggling to make ends meet.

On September 19, the Ningbo Transportation Association and the Ningbo Logistics Association jointly issued a statement warning that sharp increases in diesel prices have placed severe pressure on fuel costs for road container transport companies, posing significant challenges to the industry.

Industry in "Comprehensive Loss"

Liang Sanbo, president of the Container Truck Transport Branch of the Ningbo Logistics Association, has been working tirelessly over the past two weeks. He told National Business Daily that Ningbo's container trucking industry has fallen into comprehensive losses, with independent drivers losing money on every trip. Liang called for an immediate increase in freight rates to accelerate loss reduction and maintain market stability.

At Xiamen's Haicang Port area, logistics operator Qu Kun (a pseudonym), who runs a fleet of over a dozen trucks serving European and American routes, described the situation bluntly: "There's no business right now. Fuel prices are too high, there are no containers to move, and freight rates are being slashed." He noted that cargo volumes have dropped significantly since last year, and maintaining driver incomes means operating at a loss.

Drivers Struggle with Low Volumes and High Costs

At 11 a.m. on September 11, Shanghai's Waigaoqiao Port Terminal 4 had yet to see its peak inbound traffic. Container truck drivers waiting in line to unload at the yard reported that there were many trucks but few loads—sometimes waiting two to three days for a single order. Independent drivers with truck loans have no income without work, forcing them to accept low-paying jobs.

The situation at ports is paradoxical: while ocean freight rates are skyrocketing and container bookings are difficult to secure, with comprehensive quotes often exceeding 10,000 yuan, truckers at the docks face the grim reality of losing money whether they work or not.

Over several days, National Business Daily reporters visited multiple port areas and found that the maritime supply chain is being torn apart by geopolitical storms. A group of workers—those with the least bargaining power—are the first to feel the chill of this transformation.

Independent Drivers Lose 200 Yuan Per Trip

Peak entry times for container trucks at Shanghai's outer port terminals are 3 p.m. and 10 p.m. A veteran gatekeeper surnamed Zhang told reporters that road improvements are underway to address long queues, with additional gates planned to ease congestion.

"Usually there's a small peak before holidays, but mid-September is slow. Traffic depends on the size of arriving vessels and container handling volumes," Zhang said.

Driver Xiao Chen, who handles less-than-container-load (LCL) cargo, quickly finished a boxed lunch by the roadside, anxious to take his next order: "Business gets worse every year. We work more but earn less. Factories export with thin margins, and everyone in the supply chain—from bulk cargo to container trucking—is struggling."

For container truck drivers, eating at mobile food stalls and visiting fixed repair points are routine expenses. But now, these small costs can wipe out an entire day's profit.

"When times were good, driving for a fleet could earn me over 10,000 yuan a month. Now, with my own truck loan, my gross income is only about 20,000 yuan," said Wu, an independent driver getting a tire repaired. His wife and children live in Shandong, while he works far from home year-round. After accounting for all costs, he nets only 50,000–60,000 yuan annually.

A tire repair costs 50 yuan, oil changes every three months, annual insurance premiums are high, and diesel prices keep rising. Wu's truck handles short-haul runs from the yard to the dock, with relatively fixed freight rates. Even running two or three trips a day, the intense workload doesn't yield high returns—and payment delays add to the frustration.

Liang Sanbo provided a detailed breakdown: In Ningbo, about 80% of container trucks are affiliated with fleets but owned by independent drivers. Their income consists of driving wages and property income. However, the affiliation system creates an illusion of breaking even. Rising oil prices have further squeezed per-trip profit margins. After accounting for insurance, depreciation, maintenance, and residual value, each trip actually loses about 200 yuan.

When asked why drivers continue to accept loss-making orders, Liang explained: "Independent drivers still have mortgage payments. They'd rather operate at a loss than stop. Everyone is just enduring, hoping fuel prices will come down."

Causes: Rising Fuel Costs, Falling Freight Rates, and Shrinking Volumes

On September 16, at Xiamen's Haicang Port area, fleet owners were calculating the same equation.

"Fuel prices have risen from over 5 yuan per liter in June to over 7 yuan now," said Su, who runs a small fleet of seven or eight trucks. "What does a 2-yuan increase mean? It adds 100–200 yuan in fuel costs per trip."

Su lamented the intense competition: "Freight rates keep falling while fuel costs keep rising. Previously, a single trip could yield 500–600 yuan in gross profit. Now it's only about 100 yuan."

Su's logistics company is a family business run with his wife, representing nearly their entire livelihood. "We can only maintain existing clients. We don't dare take new orders—they'd mean losses. Everyone is just holding on. Those who can't will be washed out."

When asked why trucks still queue at the port if cargo volumes are insufficient, Su explained that yard congestion isn't due to high cargo volumes but because similar containers are concentrated at one location for repositioning, and port opening times are synchronized, causing all trucks to converge simultaneously.

During the investigation, multiple container truck operators reported that business volumes have declined significantly compared to previous years.

Industry insider Gao Qiang noted that the fundamental issue is oversupply of trucking capacity. The goods now driving export value—the "new three" products (electric vehicles, lithium batteries, and solar cells)—don't require container truck transport, while light industrial products that do need trucking are shrinking year by year. Additionally, barge and rail-sea intermodal transport have diverted some cargo from trucking.

Reporters learned that achieving zero-kilometer rail-sea transport could save at least 200 yuan per container in short-haul costs.

Another factor is price wars among fleets competing for orders.

"Freight rates can always go lower. If diesel trucks won't take a job, electric trucks will. And there are countless cargo-carrying vehicles on the road that have spoiled freight forwarders," one driver said. "Only independent trucks are losing money. Affiliated fleets still take their cut, so why would they push forwarders for higher rates?"

Power Imbalance: Independent Drivers, Fleets, and Forwarders

Unlike self-owned fleets, affiliated fleets generate income by taking a cut of freight rates from independent drivers in exchange for providing cargo orders.

Liang Sanbo explained that the difficulty in adjusting freight rates in Ningbo's container trucking industry stems from the fact that affiliated fleets' profits aren't significantly affected by fuel price fluctuations.

On one day, Liang visited four Ningbo fleets. One fleet had three affiliated trucks, with two drivers choosing to take leave and go home.

One independent driver, after five days without a load, decided to return to his hometown: "I discussed rate increases with the fleet, but they said forwarders won't agree and there are plenty of others willing to take the job. But with fuel prices this high, I really can't afford to lose 200 yuan a day running the truck."

On September 14, the Shenzhen Container Transport Association issued a notice on reasonable fuel surcharge collection.

The notice stated that with the escalation of the US-Iran conflict, international crude oil prices have continued to rise sharply, causing severe losses on some routes. If the Middle East conflict persists, further fuel price increases are possible. The association recommended a temporary fuel surcharge of 80–100 yuan per 100 kilometers for unfinished and new orders. If the listed price of No. 0 diesel falls below 7.0 yuan per liter and remains there for 15 consecutive days, companies may cancel the surcharge as appropriate.

Liang Sanbo told National Business Daily that according to industry association pricing guidelines, issuing benchmark or recommended prices is explicitly prohibited. However, given the severe cost inversion in various regions, some associations have taken the risk to protect industry income.

On September 19, the Ningbo Transportation Association and Ningbo Logistics Association jointly issued a statement opposing vicious low-price competition and disorderly internal competition. They advised companies to communicate and negotiate with clients based on fuel price fluctuations and their own operating conditions to reasonably pass on costs.

Reporters learned that fleet rate adjustment requests are often rejected, with forwarders and cargo owners demanding documented justification. While the effect of such notices on rate increases remains limited in some regions, Ningbo has shown the strongest progress.

According to a September 21 CCTV report, US diesel prices have exceeded $6.5 per gallon, setting new records. The Zhejiang Provincial Development and Reform Commission announced that the maximum retail price for No. 0 diesel in the province was raised to 7.95 yuan per liter on September 11, an increase of 25.79% since the beginning of the year.

Some freight forwarders questioned why prices are considered high when the average price of No. 0 diesel in 2024 has been around 7.7 yuan per liter.

Liang Sanbo explained that Ningbo container trucks typically use skid-mounted fuel tanks to reduce costs, which use lower-density, cheaper fuel. Previously, the price difference between skid-mounted fuel wholesale prices and retail station prices was about 1 yuan per liter. However, since February, skid-mounted fuel prices have surged by 55%, nearly matching retail prices.

What Lies Ahead?

In the comments section of Liang Sanbo's public account, discussions about electric container trucks are as heated as those about rising fuel prices.

"Don't underestimate the impact of electric trucks on diesel trucks," said fleet owner Qu Kun. "With increased local subsidies, electric trucks are flooding into Xiamen Port, using cost advantages to drive down freight rates and further squeezing the survival space of diesel trucks."

To cope with rising fuel costs, a supply chain company executive told National Business Daily that Xiamen Port is increasing the use of lithium battery new energy transport vehicles and using intelligent dispatch systems to reduce empty mileage. Excluding maintenance and insurance costs, electric trucks have a comprehensive cost of about 1.5 yuan per kilometer, with overall per-trip operating costs 70% lower than diesel trucks.

Times are changing, and cost reduction and efficiency improvement have become the main themes of port development. Domestic port collection and distribution systems are shifting from single-mode transport to multimodal transport, and container truck drivers have almost no bargaining power in this transition.

Their only choice is whether to switch to electric trucks.

However, "unclear subsidies, range anxiety, inefficient charging, and high purchase costs" continue to constrain many independent drivers' willingness to change.

Qu Kun said drivers need to earn some money first before considering switching vehicles. The industry's immediate priority is to change its internal competition.

On September 23, Liang Sanbo provided an update: In Ningbo, 80%–90% of fleets have achieved freight rate adjustments, with price increases of approximately 10%.

He stated that Ningbo freight forwarders have received an industry "ultimatum" to complete rate adjustments by October 1. For major forwarders that have not yet accepted the adjustment plan, industry associations will intervene to mediate. If negotiations fail, relevant authorities may be asked to facilitate discussions.

"Currently, self-owned fleets facing loss-making orders can only suspend operations. Some large Ningbo forwarders have recognized the adjustment trend, but progress is slow," Liang said. "The goal is simply to break even and ensure supply chain stability."

On the evening of September 24, National Business Daily reporters, without identifying themselves, called the Ningbo Transportation Bureau to inquire about the reported freight rate adjustments. A staff member said they would look into the matter and might respond after the holiday.