In 2020, four major new transportation regulations were introduced—could chemical shipping rates soon surge?

Release Date:

2019-12-11

“Your balance for 2019 is now insufficient. Please top up promptly!”
　　Oh well, you can’t top up in 2019 anymore—just patiently wait for 2020 to arrive. With biting cold winds blowing and rainy, snowy weather steadily setting in, news of suspended deliveries has begun to surface as well.
　　After all, by year’s end, prices for most chemical raw materials tend to stabilize, making it difficult to predict whether they will rise or fall. Consequently, as the year draws to a close, chemical industry professionals—guided by the mindset of “stocking up on next year’s supplies this year”—are most concerned with logistics and transportation.
　　So here’s the question: After gathering information from multiple sources, Xiao Qi has discovered that four major policies will be introduced in the transportation sector in 2020, taking effect on January 1.
　　Four major new regulations on transportation have been introduced, driving up the cost of chemical transport!
　　Every year on January 1, new regulations are introduced. On January 1, 2019, environmental policies such as the Soil Protection Law were enacted, while on January 1, 2020, four new regulations were rolled out for the transportation sector. Let’s take a look:
　　I. Ministry of Transport: Unified Time Period for Highway Restrictions on Hazardous Chemicals in 2020
　　At a November press conference, the Ministry of Transport announced that the Measures for the Safety Management of Road Transportation of Dangerous Goods had recently been issued and would officially come into effect on January 1, 2020. The Measures set forth requirements to ensure the safe, efficient, and convenient transport of dangerous goods, stipulating that vehicles carrying hazardous chemicals may only travel on expressways between midnight and 6:00 a.m.
　　During the meeting, it was noted that China is a major producer and user of hazardous materials. As of the end of 2018, the country had 12,300 road transport enterprises handling dangerous goods, operating 373,000 vehicles and employing 1.6 million workers. Nearly 3 million tons of hazardous materials are transported by road each day, with road transport accounting for 70% of the total volume of hazardous‑goods transportation.
　　Currently, many provinces adopt differing measures for vehicles transporting hazardous chemicals. The lack of uniform local traffic‑restriction policies to some extent hinders the transport of dangerous goods, thereby affecting both production and demand. The forthcoming policy stipulates that when public security authorities impose restrictions on the passage of hazardous‑chemical transport vehicles, they must announce such measures in advance and designate detour routes. Where it is indeed necessary to restrict the use of highways by hazardous‑chemical vehicles, the restricted time periods shall be between midnight and 6:00 a.m., with the aim of advancing a nationwide, unified policy for managing vehicle access.
　　Surprisingly, small‑volume hazardous goods that meet the requirements are subject to an exemption regime; those exempted are transported under the same regulations as ordinary cargo, thereby reducing transportation costs. For small‑packaged daily‑use chemical products such as 84 disinfectant and perfume, as well as aerosols and chemical reagents, transport must be carried out using vehicles specially designated for hazardous materials, and these items may not be mixed with other goods, resulting in higher transportation expenses.
　　II: In 2020, freight vehicles were charged based on the number of axles.
　　In multiple provinces, implementation has been carried out in strict accordance with the document issued by the General Office of the State Council. Effective January 1, 2020, a new vehicle classification standard for passenger and freight vehicles on toll roads nationwide has been put into effect, and the toll‑charging method for freight vehicles has been adjusted from weight‑based charging to charge‑by‑vehicle (axle) type.
　　From documents across various regions, we have found that the new tolling scheme is based on a fundamental premise: it will not exceed the previous charging method. Specifically, for each vehicle class, the toll payable under standard loading conditions must not exceed the toll amount that would have been due under the original weight‑based pricing system.
　　III. In 2020, trailers are required to be equipped with disc brakes, increasing the purchase cost by RMB 50,000.
　　That’s right—vehicle prices are set to rise! On October 28, 2019, the Equipment Industry Development Center of the Ministry of Industry and Information Technology issued the “Notice on Implementing Rectification Measures for Standards Including GB 7258-2017.” Effective January 1, 2020, flatbed and stake‑body trailers will be required to be equipped with disc brakes, driving up purchase costs by nearly RMB 55,000.
　　According to the provisions of GB 7258-2017:
　　1. Effective January 1, 2019, newly manufactured semi-trailers used for the transport of dangerous goods must be equipped with disc brakes.
　　2. Effective January 1, 2020, newly manufactured platform and stake-body semi-trailers shall be equipped with disc brakes.
　　3. The rear axle of freight vehicles transporting dangerous goods with a gross vehicle mass of 12,000 kg or more, all semi-trailers used for the transport of dangerous goods, and three-axle platform and lattice‑type semi-trailers shall be equipped with air suspension.
　　If a standard semi-trailer is upgraded with disc brakes and air-suspension axles, the cost will increase by roughly RMB 55,000—though prices vary depending on the brand. Moreover, several axle manufacturers point out that disc brakes must be paired with a hydraulic retarder; otherwise, there are certain safety risks—adding another few tens of thousands of yuan to the expense. (With vehicle acquisition costs rising, won’t freight rates go up as well?)
　　IV. In 2020, non-stop toll collection with ETC direct access.
　　On October 28, the nation’s first bookkeeping‑type ETC card for freight vehicles was successfully issued. This card integrates an onboard electronic tag with an ETC card, enabling trucks to pay tolls and pass through highway toll plazas without stopping, allowing them to travel seamlessly across the national expressway network at full speed.
　　A reminder to all truck drivers:
　　1. Truck customers can have ETC devices installed free of charge.
　　2. Before December 31 of this year, users who install an ETC kit can enjoy a 5% discount on tolls and pay via non-cash methods, but must use the manual toll lanes.
　　3. Effective January 1, 2020, freight vehicles equipped with ETC devices may use ETC lanes for seamless, stop‑free passage and are eligible for a toll discount of at least 5%. Freight vehicles that have not installed an ETC on‑board unit (including ETC single‑card users) will no longer be entitled to toll reductions or other preferential policies.
　　At present, hazardous‑material trucks are prohibited from entering certain areas!
　　The aforementioned four policies will not take effect until January 1, 2020, and at present, hazardous chemical freight vehicles remain prohibited from traveling in certain regions.
　　Henan
　　All hazardous‑material vehicles are prohibited from using the province’s expressways.
　　Hebei
　　From 7:00 p.m. to 7:00 a.m. the following day, vehicles transporting hazardous materials are prohibited from using the highways. Vehicles carrying hazardous materials that have already entered Hebei Province’s expressways before 7:00 p.m. must exit at the nearest toll plaza.
　　Zhejiang
　　From 00:00 to 06:00, vehicles transporting hazardous materials are prohibited on the Hangzhou Bay Bridge; the Dongyong Expressway; the Yunjing Expressway; the Yongtaiwen Expressway between Fen Shui Pass and Guanmei, and between Daxi and Yandang; the Shangsan Expressway from Xinchang to Baihe; the Jinliwen Expressway between Lishui Haikou and Yangyi; the Jia-Shao Bridge, the Yongzhou Cross-Sea Bridge, and the Xiangshan Port Bridge; the entire Zhuyong Expressway; the Taijin Expressway between Huzhen and Hengxi (including the Cangling Tunnel); the Qianjiang Passage (the section passing through the river‑crossing tunnel); the Ningbo Ring Expressway at Shahe and Jiulonghu; the Ningbo section of the Hangyong Expressway (Duantang) and Dazhujia; and the Ningbo East section of the Yongtaiwen Expressway. Additionally, all vehicles carrying hazardous chemicals are prohibited from using the Zhijiang Bridge.
　　Hunan
　　From 00:00 to 06:00 daily, vehicles transporting hazardous materials are prohibited from using expressways.
　　Shandong
　　The restricted area is defined as follows: to the east, from Dongping Road (i.e., the eastern outer ring road between the northern outer ring and National Highway G206) to National Highway G206 (between Dongping Road and Shiliquan Road); to the west, from Xian’an Road (Provincial Highway S322) to Xichang Road (between Junshan West Road and Beian Road); to the south, from Shiliquan Road (Provincial Highway S322 between National Highway G206 and Xian’an Road); and to the north, from Beian Road (the northern outer ring road between Dongping Road and Xichang Road) to Junshan West Road (formerly the Zao‑Cao Line between Xichang Road and Xian’an Road). Within this designated area, all roads prohibit the passage of vehicles transporting hazardous chemicals. On Guangming Avenue, between Dongping Road and the boundary marker with Xuecheng District, vehicles carrying hazardous chemicals are prohibited. On Shiling Road, from Junshan Road to Beian Road (i.e., the northern outer ring), time‑restricted prohibitions on such vehicles apply from 7:00 a.m. to 8:30 a.m., 11:00 a.m. to 12:30 p.m., and 5:00 p.m. to 7:00 p.m.
　　Critical road sections within the no‑entry zone: Junshan West Road from Nanyuan Interchange to Xian’an Road (Provincial Highway S322); Xichang Road from Junshan West Road to Beian Road; and Dongping Road (also known as the Eastern Outer Ring Road) from the Houzaizi Intersection to the G206 National Highway Intersection. Vehicles transporting hazardous chemicals are prohibited from using these critical road segments.
　　Prohibited sections of surrounding roads: On Provincial Highway S241 (Zaofei Line), the section from the Houzaizi intersection to the Eshankou intersection is closed to northbound-to-southbound traffic of hazardous‑chemical transport vehicles; on County Road X019 (formerly the Zaocao Line), the section from the Dongjie intersection to the Tiantun intersection; and on Guangming East Road (Provincial Highway S515), the section from National Highway G206 to Dongping Road, all these sections are off‑limits to hazardous‑chemical transport vehicles.
　　Jiangsu
　　The ban on the operation of vehicles transporting hazardous chemicals shall take effect as of December 5, 2019—today.
　　Restricted road sections: Provincial Highway 242, Songhua River section (from Gangcheng Avenue to the Dongshu Port Expressway); National Highway 228, Xinguang section (from Dagang Road to Jing 17th Road); North Shu Port Expressway section (from Kilometer Zero of the Lianhuo Expressway to the Xida Di section); and Dagang East Road (from Kilometer Zero of the Lianhuo Expressway to the Port section).
　　Vehicles transporting hazardous chemicals in transit may bypass the restricted areas via National Highway 204, National Highway 310, the G15 Shenhai Expressway, and the G30 Lianhuo Expressway. Vehicles whose origin or destination lies within a prohibited‑traffic zone and that nonetheless must enter such a zone shall obtain a通行 permit through the “Lianyungang Public Security” WeChat service or by visiting the public security and traffic police window at the Municipal Administrative Service Center, and shall comply with the designated time, route, and speed limits.