"Exceeding limit order" gradually implemented, plate companies to follow prices?


On September 21, 2016, the “Regulations for the Administration of Oversized Transport Vehicles on Highways”, known as “the most stringent overreaching order in history”, was formally implemented. The traffic department implemented a new round of “strike hard” for overloaded vehicles, and many industries rely on “overload” compression. The unspoken rules of costs have been completely broken. Now, with the gradual implementation of the “Exceeding Limit Order”, the transportation costs have risen sharply. Will the plate companies not raise their prices by following the trend?

For the sheet metal industry with large shipments and net profit, the pressure brought by rising transportation costs is enormous, and the industrial chain's cost in the sheet metal industry has risen structurally. If prices do not follow the trend, the cost will increase. If pressure alone embraces the upper body, the board company will certainly not be able to afford it. However, if prices are increased sharply, it will put pressure on downstream sales and cause consumer dissatisfaction. Therefore, plate companies can take advantage of price increases, but the rate should not be too large. The most important thing now is to take measures to effectively control transportation costs in order to cope with the crisis of rising transportation costs.

The gradual implementation of the “Exceeding Limit Order” allows sheet companies to no longer rely on “overloading” to save transportation costs, which in turn leads to higher transportation costs. Therefore, sheet metal companies must start from the source and effectively control transportation costs. First of all, the plate companies must rationally plan the transportation process, the shipment of plates is large, and the dependence on transportation is strong. The formulation of the most provincial, fastest and best transportation plan can effectively regulate the transportation costs;

Secondly, plate companies should choose reasonable transportation tools and modes of transportation, choose the transportation tools and modes of transportation that are economical, rapid, safe, and convenient; finally, the plate companies can also appropriately reduce the transportation links, such as Under the conditions of direct transportation, direct transportation will be adopted to reduce the secondary transportation links, and as far as possible, unreasonable phenomena such as phase-to-phase transportation and circuitous transportation will be eliminated.

The “over-limitation order” was gradually implemented, resulting in rising transportation costs. However, sheet metal companies could not blindly increase prices to ease the pressure. Instead, they should start from the source and take measures to reduce transportation costs in order to ensure a healthy development trend.

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