Starting July 1st, Article 66 of the "Road Safety Protection Regulations" (hereinafter referred to as the "Regulations"), which stipulates the penalty of revoking road transportation business licenses, has plunged many active small logistics companies in the market into a survival crisis.
It is reported that the majority of logistics companies in our country are on the smaller side. For road freight companies, which account for 75% of the total transportation volume, there are 789,000 registered companies, but each on average owns only 2.5 vehicles. On June 23rd, journalists visited the Xinfadi Market in Beijing and the Hanlong Logistics Center, finding that many trucks were marked with their respective logistics company names. Through interviews, however, the journalists discovered that most of these logistics companies have around 10 vehicles. Yuan Shifu from Yucheng, Henan Province, said, "Our company has about seven or eight vehicles." Liu Shifu from Zhenfeng Logistics Company in Zhejiang said the company has over 10 vehicles. Liu Shifu added that their company had a meeting to convey the specific contents of the "Regulations," but only mentioned that licenses would be revoked for exceeding three suspensions, and they were unaware of the regulations affecting the enterprise.
"The red line of 10% for the total number of freight vehicles essentially means that not a single vehicle can have an issue for many small logistics companies with less than 10 vehicles," an industry expert stated. "Compared to previous penalty methods that primarily involved fines, the revocation of road transportation operation licenses can be considered a fatal blow, further narrowing the survival space for small logistics companies."
A small logistics company doesn't even have management in place, let alone control over its vehicles. Many of them are mere "shell companies," merely providing registration services for social vehicles." A logistics company manager in Zhangjiakou, Hebei, further explained, "Once the Regulations are strictly enforced, it will present a significant challenge to small logistics companies."
To provide users with convenience in obtaining vehicle purchase loans and to better monitor them, some truck dealers have established logistics companies for user affiliation. Previously, truck dealers with this business primarily bore the financial risks. However, after the implementation of the "Regulations," they may also face the possibility of being involved with overweight vehicles. "If that's the case, many truck dealers will shy away from this model, which may lead to another shift in truck sales," a heavy-duty truck dealer who prefers anonymity stated.
Given the current situation where many large logistics companies outsource low-profit long-haul transportation services, the aforementioned industry expert believes that if the "Regulations" increase the survival pressure on small logistics companies, it will also impact the interests of these large logistics companies.





