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

Recent weeks have seen a small peak in port cargo volumes, but life has become increasingly difficult for container truck drivers.

Industry Associations Sound the Alarm

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

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 widespread losses, with individual drivers losing money on every trip. Liang called for an immediate increase in freight rates to accelerate loss reduction and maintain market stability.

Drivers and Fleet Owners Struggle

At Xiamen's Haicang Port Area, Qu Kun (a pseudonym), a logistics business owner handling Europe and US routes, manages a fleet of over a dozen drivers. "There's simply no business right now. Fuel prices are too high, there are no containers to move, and freight rates are being driven down," Qu said. Since last year, cargo volumes have dropped significantly. To maintain driver income, he has to operate at a loss.

At 11 a.m. on September 11, at Shanghai Waigaoqiao Port's Terminal 4, the inbound peak had not yet begun. Container truck drivers waiting in line to unload at the yard reported that there were many trucks but few loads—they could only get one order every two or three days. Individual drivers with truck loans have no income if they can't find work, forcing them to accept low-paying jobs.

The situation at ports is stark: on one side, ocean freight rates are soaring and containers are hard to book, with comprehensive quotes often exceeding 10,000 yuan; on the other side, port container truck drivers face the dilemma of "losing money whether they work or not."

Over recent days, National Business Daily reporters visited multiple port areas and found that the shipping chain is being torn apart by geopolitical storms. A group of people are feeling the chill of this transformation first, yet they have no bargaining power.

Current Situation: Individual Drivers Lose 200 Yuan Per Trip

The peak hours for container truck entry at Shanghai's outer port terminals are 3 p.m. and 10 p.m. Lao Zhang (a pseudonym), who has manned the checkpoint for years, told reporters that road improvements are underway to address long queues, with additional checkpoints planned to ease congestion.

"There's usually a small shipment peak the week before a holiday. Mid-September is relatively quiet. Traffic depends on the size of arriving cargo ships and the number of containers being loaded and unloaded," Lao Zhang said.

Driver Xiao Chen (a pseudonym), who handles LCL (less-than-container-load) cargo, quickly finished his 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 high volumes, so those of us running bulk or container cargo can't make money."

Eating at mobile food stalls and getting repairs at fixed garages are the most mundane routines for container truck drivers. But now, these small expenses can wipe out an entire day's profit.

"When business was good, I could earn over 10,000 yuan a month driving for a fleet. Now I have my own truck loan, and my gross income is only 20,000 yuan," said Driver Wu, an individual operator who was 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 to 60,000 yuan annually.

A tire repair costs 50 yuan, oil changes every three months, annual insurance is high, and diesel prices keep rising. Wu's container truck handles short-haul runs from the yard to the port, with relatively fixed freight rates. Even running two or three trips a day, the high-intensity work doesn't bring high returns—and there's the added headache of delayed payments.

Liang Sanbo calculated the numbers for reporters. In Ningbo, about 80% of container trucks are affiliated with fleets but owned by individual drivers. Their income consists of two parts: driving wages and property income. However, the affiliation mechanism can easily give drivers the illusion that they can still break even. Now, rising oil prices have further squeezed the gross profit margin per trip. After accounting for insurance, depreciation, maintenance, and residual value amortization, each trip actually loses about 200 yuan.

"If you lose money on every order, why does the industry still compete on price to get orders?" the reporter asked.

"Because individual drivers still have mortgage payments. They'd rather operate at a loss than stop," Liang said helplessly. "Everyone just has to tough it out and hope fuel prices come down."

Causes: Rising Fuel Costs, Falling Freight Rates, and Shrinking Business 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 Boss Su, who runs a small fleet of seven or eight trucks. "What does a 2-yuan increase per liter mean? It adds 100 to 200 yuan in fuel costs per trip."

Su lamented that the industry is extremely competitive, with freight rates constantly falling while fuel costs have risen sharply. Previously, a single trip could yield a gross profit of 500 to 600 yuan; now it's only about 100 yuan.

Su's logistics company is run by him and his wife, representing almost their entire family income. "We can only maintain existing customers. We don't dare take new orders—taking them means losing money. Everyone is just holding on. Those who can't will be washed out."

"If falling freight rates are due to insufficient cargo, why are there still trucks lining up at the port?" the reporter asked.

Su explained that the yard is full not because there's too much cargo, but because similar containers are being concentrated in one place for dispatch, and port opening times are relatively synchronized. All trucks head to the same place at the same time, creating long queues.

During the reporting, multiple container truck industry insiders mentioned that business volumes have significantly declined compared to the past.

Industry expert Gao Qiang noted that the fundamental issue is oversupply of container truck capacity. The goods currently driving export value—the "new three" (electric vehicles, lithium batteries, and solar products)—don't require container trucks. Meanwhile, the light industrial products that do need container truck transport 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 that fleets are undercutting each other to win orders.

"There's no floor on freight rates—only lower. If diesel trucks won't do it, electric trucks will. And there are countless owner-operated trucks running around that have spoiled freight forwarders," one container truck driver said. "It's only individual operators losing money. Affiliated fleets still take their cut, so why would they proactively ask forwarders for higher rates?"

The Power Imbalance: Individual Drivers, Fleets, and Freight Forwarders

Unlike fleets that own their trucks, affiliated fleets earn income by providing cargo orders to individual drivers and taking a commission.

Liang Sanbo told reporters 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, and two drivers had chosen to take leave and go home.

One individual driver, after five days without a load, decided to return to his hometown. "I discussed raising freight rates with the fleet, but they said the forwarder wouldn't agree—there are plenty of others willing to take the job. But with fuel prices this high, I really can't do a job that loses 200 yuan a day for both me and the truck."

On September 14, the Shenzhen Container Transport Association issued a notice on reasonably collecting fuel surcharges.

The notice stated that the US-Iran conflict has escalated again, international crude oil prices continue to rise sharply, and some routes are operating at severe losses. If the Middle East conflict continues, fuel prices may rise further. The association recommended temporarily charging a fuel surcharge of 80 to 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.

In fact, Liang told National Business Daily that according to industry association pricing guidelines, publishing benchmark prices or recommended guidance prices is explicitly prohibited. However, given the severe situation of costs exceeding revenues in various regions, some associations have had to take this 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 customers based on fuel price fluctuations and their own operating conditions to reasonably pass on costs.

Reporters learned that when fleets apply for rate adjustments, they are often rejected. Freight forwarders and cargo owners demand evidence and documentation. Currently, the effect of price increases after such notices remains limited in some regions, but Ningbo shows the strongest certainty.

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

Some freight forwarders questioned: the average price of No. 0 diesel in 2024 so far is about 7.7 yuan per liter—where is the increase?

Liang Sanbo explained that Ningbo container trucks mostly use skid-mounted refueling to reduce costs. Skid-mounted fuel has lower density and is cheaper. Previously, the price difference between wholesale skid-mounted fuel and retail station prices was about 1 yuan per liter. However, since February, the price of skid-mounted fuel has risen by as much as 55%, now 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, 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 mainly 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 container trucks have a comprehensive cost of about 1.5 yuan per kilometer, with overall operating costs per trip 70% lower than diesel trucks.

Times are changing. Cost reduction and efficiency improvement have become the main theme of port development. Domestic port collection and distribution systems are shifting from single-mode transport to multimodal transport. Container truck drivers have almost no bargaining power in this transformation.

Their only choice is whether to switch to electric trucks.

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

Qu Kun told reporters that he needs to earn at least some profit before considering replacing his truck. The industry's immediate priority is to change its internal competition state.

On September 23, Liang Sanbo updated reporters on the latest progress. Currently, 80% to 90% of Ningbo container truck fleets have achieved freight rate adjustments, with price increases of about 10%.

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

"Currently, fleets that own all their trucks can only suspend operations on loss-making orders. Some large Ningbo forwarders have also recognized the need for rate adjustments, but progress is relatively slow," Liang said. The adjustment aims only to avoid operating at a loss, thereby ensuring supply chain stability.

On the evening of September 24, National Business Daily reporters, without disclosing their identity, called the Ningbo Transportation Bureau to inquire whether the situation regarding container truck freight rate adjustments was accurate. A relevant staff member said they would look into the matter and might respond after the holiday.