Dangerous goods logistics: Digital transformation is imminent, and cost reduction and efficiency increase is the biggest demand

Release time:

2023-06-29

Today in 2022, it is difficult to do logistics, and even more difficult to do dangerous goods logistics. I believe this is the consensus of many hazardous material logistics practitioners.

As is well known, China is a major producer and user of hazardous chemical products. According to data from the National Bureau of Statistics, in 2021, the production of ethylene among the three major hazardous materials in China reached 28.257 million tons, a year-on-year increase of 30.82%; The production of caustic soda reached 38.913 million tons, a year-on-year increase of 6.81%; The production of sulfuric acid reached 93.827 million tons, a year-on-year increase of 1.56%; On the contrary, the domestic logistics transportation volume of hazardous chemicals also shows a significant growth trend.

As of 2020, the total transportation volume of hazardous chemicals in China exceeded 1.73 billion tons, an increase of 6.4% compared to 2018. In terms of market size, according to the statistics of the China Federation of Dangerous Chemicals Logistics Branch, the market size of hazardous chemicals logistics in China was 1.87 trillion yuan in 2019. By the end of 2021, this number had grown to over 2.2 trillion yuan, and it is expected to exceed 2.4 trillion yuan by the end of 2022!

From this, it can be seen that the development and prospects of China's hazardous chemical transportation market have been very good in recent years.

However, it is worth mentioning that from the perspective of industry development, the recruitment and talent market for dangerous goods transportation in China is currently in a continuous downturn. According to relevant data, as of the third quarter of 2021, there were a total of 1.62 million employees in China's hazardous goods transportation industry, including 770000 hazardous transportation drivers, 79000 escorts, 55000 cargo loading and unloading personnel, and a total of 575000 hazardous chemical transportation vehicles, scattered among 13000 hazardous transportation enterprises.

Firstly, the number of employees clearly does not match their market size of up to 2.2 trillion yuan; Secondly, 570000 vehicles are scattered among 13000 transportation enterprises, with an average of only 4 vehicles per transportation enterprise. This further demonstrates the current situation of small scale, dispersed resources, and chaotic development of transportation enterprises in China's hazardous goods transportation market.

How to solve the development challenges faced by the hazardous transportation industry?

Compared with ordinary goods, due to the fact that the transportation of hazardous chemicals is mainly one-way goods, and the current traditional and offline operation mode of a large number of transportation enterprises in the industry, it is difficult for drivers to find return goods after delivering them to the destination, with a return empty load rate of over 55%. Therefore, under the existing market conditions, in addition to doing a good job in safety, how to help transportation enterprises "reduce costs and increase efficiency" has become the top priority for the operation of hazardous chemical logistics enterprises.

Based on this, many transportation enterprises and freight platforms have made corresponding attempts in recent years, ultimately establishing the direction of carrying the domestic Internet economy development and helping traditional transportation enterprises solve pain points through digital and platform development.

How can digital platforms help logistics enterprises "reduce costs and increase efficiency"?

1. In response to the problem of scattered industry resources, the Dangerous Driver Platform has integrated nearly 360000 transportation needs from thousands of cooperative chemical factories across the country. It not only supports settled enterprises and individual car owners to search based on conventional methods such as dangerous goods category and release time, but also automatically recommends transportation orders that meet the category of goods carried by drivers within 3-10 kilometers based on registered vehicle transportation category information, and supports drivers to place orders with one click. Help drivers quickly find return goods.

2. In response to the issue of loose management in transportation enterprises, dangerous drivers have added functions such as vehicle management and order management to the platform design and creation process. This not only simplifies the operation and makes the interface information concise, but also achieves the "cardification" of order information, making it convenient for enterprises and individual users to quickly search. On the one hand, this makes it easier for transportation enterprises to manage vehicle and order information, and on the other hand, for some small and medium-sized enterprises, it is equivalent to saving a sum of funds for developing or purchasing their own CRM systems.

3. In response to the problem of a large number of transportation enterprises in the industry being small in scale and unable to form a unified standard, hazardous drivers have pioneered the "hazardous transportation enterprise alliance co creation" model, encouraging major transportation enterprises to join and become joint shareholders of the hazardous driver platform. From then on, everyone will deeply integrate with the platform, no longer just a simple relationship between Party A and Party B, but become a large transportation enterprise alliance. In the future, we can not only increase our revenue through multiple platform orders, but also achieve mutual assistance among alliance enterprises. We can work together to build industry standards, making the development of enterprises faster and more stable!

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Dangerous goods logistics: Digital transformation is imminent, and cost reduction and efficiency increase is the biggest demand

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