25 – 30 Cars Seems Insane

Yet in China this seems to be a common practice, albeit illegal.  Local government’s often will issue permits for car hauling trailers as long as 27-meters.  Their federal government makes it very clear that this is against their laws.  The real problem here is that it makes the market extremely difficult to compete in for legal carriers.  Since they are limited to 6 cars per load, how can they compete with 25-30 cars per load?!  There might be some good news for the auto industry in China though.

China Car Carrier Good News

The wait is coming close to end, because the laws are being revised.  Revised in what way you may ask?  China has begun talks with the auto transport industry to determine what makes reasonable sense for trailer lengths.  According to the China Automotive Logistics Association, the new regulations are looking to limit trailer lengths to 22 meters.

Illegal sector changes

These changes are going to force companies that have been defying the governments main regulations have harsher consequences.  Yet, this is actually a good change for them.  Even though they will most likely have to scrap their 27 meter trucks, they can get better performance from 22-meter ones.  There is also the flexible detach-ability of short trailers that comes with this.

When will this go into effect?

The Chinese regulators are hoping to have this fully implemented by the end of 2018.  A lot of different factors will determine whether that is feasible, such as:

• Center-axle production capabilities
• Current equipment alterations
• Cost to switch to new platform
• Rail head capacity
• Water way port capacity
• Obtaining more tractor / trailer combinations to accommodate for smaller loads.

These are just a few things to take into consideration, but overall will make the car hauling market in China much more competitive.  Especially if they implement an auto hauler software.  What are your thoughts? Comment below.