The national general cargo freight index system is a vital part of the China Logistics and Purchasing Federation’s logistics statistical framework. It includes four main indices: the comprehensive index, vehicle freight index, LTL heavy goods index, and LTL light goods index. These indices are derived from in-depth statistical analysis of real-time transportation price data collected through regular interviews with over 5,000 qualified transport companies across seven major economic regions, 45 key cities, and 360 major road routes nationwide.
In September, the domestic road freight market was nearing its end, but prices for LTL heavy goods saw a significant recovery, outpacing other segments like vehicle transport and light loads. According to data from the China Federation of Logistics and Purchasing and Huitianxia Information Technology Co., Ltd., the average road freight rates in September 2007 were 0.235 yuan/ton km for full truckloads, 0.334 yuan/ton km for LTL, and 0.10 yuan/cubic kilometer for light loads. The overall freight index surged to 75%, signaling strong market activity.
Historically, the road freight market experiences seasonal fluctuations, with May to July being the off-season and October to February considered the peak season. During the peak period, especially around the Chinese New Year in February, freight rates reach their annual high due to increased demand. Conversely, from January to July, freight prices drop significantly, marking the low season, where user income declines and maintenance costs rise due to summer conditions.
In September, both the total cargo volume and freight turnover saw a notable increase, which contributed to higher freight rates. The total freight volume rose by 10% year-on-year, up 1.04% from the previous month, with an increase of 14.04 million tons compared to August. The freight turnover also grew by 17.78% annually, showing a clear upward trend.
The price recovery in September led to a surge in demand for heavy trucks, often referred to as the “golden September, silver October†period. Freight rates are influenced by both supply (carriers) and demand (consignors), with factors such as vehicle availability, cargo volume, and market dynamics playing a key role. After tariff adjustments in June and July, freight rates stabilized, leading to increased user confidence and a rise in heavy truck orders as the peak season approached.
The break-even point for general cargo road freight is approximately 0.19 yuan/ton km. Road transport users can be broadly categorized into ordinary users and dedicated line users. Ordinary users typically operate on highways or national roads, adhering strictly to regulations. Dedicated users, however, mainly use provincial roads, avoiding expressways and often aiming to maximize profits through overload. Their expenses include fixed costs like insurance, taxes, and management fees, as well as variable costs such as fuel, tolls, and maintenance.
For example, a 49-ton semi-trailer truck carrying 30 tons of cargo over 1,800 kilometers would incur about 10,000 yuan in total costs, resulting in a break-even rate of roughly 0.19 yuan/ton km.
With increased highway traffic, heavy truck operators saw improved revenue. Although the freight rate increase in September wasn’t dramatic, it had a meaningful impact on user income, boosting confidence. Based on a 10,000-kilometer trip, transporting 40 tons of cargo could generate at least 400 yuan in additional revenue.
As the peak season approaches, freight index growth is expected to accelerate, particularly after November, reflecting the seasonal demand patterns that have historically shaped the road freight market.
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