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China’s truck drivers are unhappy about increased prices under a new electronic toll system. Photo: AP

China’s truck drivers see dead end ahead amid rising costs and new toll system

  • Long-haul truck drivers are unhappy with China’s new toll system, which has increased costs in an industry already notorious for tough working conditions
  • China’s extensive tollways are among the world’s most expensive for drivers because of their debt-financed construction model

Dirty, lonely and exhausted from driving hundreds of kilometres at a time on only a few hours of sleep, Wang Ping is one of China’s army of 30 million truck drivers working long hours for low pay.

Ping, who is in his early 40s, has just finished a gruelling 36-hour, 2,500km journey from the central Chinese province of Hubei to the Pearl River Delta in his 49-tonne truck. After a few days’ rest, he’ll climb back behind the wheel and do it all over again – a round trip he grinds out about four times a month.

“We truck drivers live away from our families and often eat and sleep alone in the small truck cab. The past two years I’ve been living this way, but I’m still not earning enough to support my family and make the truck [loan] repayment,” Wang said at a logistics park on the outskirts of Shenzhen in the southern Guangdong province.

Surrounded by semi-trailer trucks, Wang and his fellow drivers doze or discuss life criss-crossing the country on long-haul routes, a job that is becoming increasingly difficult amid rising fuel costs, unpredictable fines from traffic police and fierce competition as China’s economy slows to record lows.
We truck drivers live away from our families and often eat and sleep alone in the small truck cab. The past two years I’ve been living this way, but I’m still not earning enough to support my family
Wang Ping

Truck freight traffic accounts for three quarters of the transport of goods in China, an essential component in the country’s booming economy over the past few decades. But despite their contribution to China’s growth, the working and living conditions of drivers have not kept pace. The sector is still beset by long hours, limited health insurance coverage and excessive levies by local and national governments.

And at the dawn of the new year, China’s truck drivers had another worry to contend with – Beijing’s implementation of a new electronic toll collection system. The central government announced in March 2019 that it would levy tolls from 80 per cent of all vehicles using national motorways by the end of 2019. Under the system, toll stations can collect money from passing vehicles automatically, cutting down on long queues of traffic at booths.

However, the early implementation of the automatic charging system has proved chaotic, with many truck drivers complaining about a hefty rise in toll costs. Wang claimed that during his last drive from Dongguan, a manufacturing hub in Guangdong province, to Jingzhou in Hubei, he was charged 3,166 yuan (US$455), about 600 yuan (US$86) more than under the old system.

“The toll increase will only make drivers’ lives worse,” he said. Of the 15,000 yuan (US$2,160) he earned for the 5,000km round trip, Wang was left with less than 4,000 yuan (US$575) after paying for fuel and tolls, and most of that was gobbled up paying off his truck loan. Moreover, his orders and income have shrunk to a record low over the past year, he added.

China’s long-haul truck drivers can earn up to 12,000 yuan (US$1,726) a month, roughly 144,000 yuan (US$20,700) a year, according to drivers. By comparison, truck drivers in the United States earned an average annual salary of US$43,680 in 2018, data from the US Bureau of Labour Statistics showed.

Truck drivers’ incomes have shrunk rapidly in recent years, according to Wang. Freight hauling rates are about six yuan (86 US cents) per kilometre, down 40 per cent from 10 yuan in 2016 and seven in 2018. Diesel fuel prices have jumped from 5.6 yuan per litre in 2017 to 6.7 today.

In 2018, China’s total freight volume was worth 283.1 trillion yuan (US$40.7 trillion). The ratio of total logistics expenses to gross domestic product stood at 14.8 per cent at the end of 2018, largely unchanged from the previous two years, according data from government and China Federation of Logistics and Purchasing (CFLP).

But in the first eight months of 2019, total logistics costs came in at 8.9 trillion yuan (US$1.2 trillion), up 7.8 per cent year on year. Transport accounted for more than half of China’s total logistics costs in 2017, according to the Ministry of Transport.

Wang is not the only driver unhappy with the new toll fees and many truck drivers have posted blogs or videos on social media to draw attention to their concerns. A logistics company owner in Shaanxi province complained to local media on January 2 that his four identical trucks, all carrying about 48 tonnes of goods, were charged four different prices for travelling the same route on the same day.

In one widely shared social media post, a driver complained after he was charged 7,002 yuan ($1,008) for a 1,650km trip from Sichuan province to Hebei province. He refused to pay at the toll booth, causing a large backup of traffic that only cleared after staff agreed to let the driver through after paying 4,201 yuan (US$604).

An official from China’s Ministry of Transport admitted in an interview with the People’s Daily last week that “technical problems” had led to excessive charges. The official said the first response of toll attendants should be to let trucks pass if they were overcharged and refund drivers.

The transport ministry also warned that some truck drivers should expect higher toll fees, as calculations were now made on distance rather than freight weight, the newspaper reported.

Some 70 per cent of the world’s tollways are in China and they are among the most expensive in the world for motorists, according to the World Bank.

But it is not just high operating costs weighing on Chinese truck drivers. Local media regularly report cases of drivers dying in the cabs of their trucks due to excessive work. Some have committed suicide because they were unable to pay hefty fines. In 2014, the country was shocked after a couple in Henan, who operated a truck together, committed suicide after the vehicle was seized by local authorities for overloading.

Some 70 per cent of the world’s tollways are in China, according to the World Bank. Photo: Xinhua
In the summer of 2018, truck drivers in 10 provinces across the country staged protests against stagnant pay rates, high fuel costs and arbitrary fines, according to China Labour Bulletin, a non-profit organisation that tracks labour protests in China.

Transport authorities said in 2015 that tolls will continue to be charged on government-financed motorways until local governments fully repay the construction debts.

Truck drivers and wholesale firms, meanwhile, have said they will raise prices to cover rising expenses, passing on the costs to retailers and consumers.

“We are thinking of raising freight prices by 5 per cent due to the new toll fee standards,” said Huang Mu, who runs a logistics company in Zhengzhou in Henan province and owns several trucks. “A round-trip between Zhengzhou and Guangzhou now costs over 1,000 yuan (US$144) in tolls.”

I look 10 years older than I should. I miss my family but I’m always far from them and tired from head to toe
Truck driver
If transport costs keep rising, drivers will be given a greater incentive to dangerously overload vehicles, he warned.
Last October, public anger mushroomed after three people, including a four-year-old girl and her mother, were killed and two more injured when an overpass collapsed on top of them in Wuxi city. Authorities blamed the accident on an overloaded truck carrying 170 tonnes of steel coils – 115 tonnes more than the maximum permitted.

“I just can say truck drivers are suffering and it is risky for all,” another driver said. “I look 10 years older than I should. I miss my family but I’m always far from them and tired from head to toe,” he said.

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