China’s road logistics freight index continued its slight upward trend in September

On October 9, the China Logistics and Purchasing Federation released data revealing that the country’s highway logistics freight rate index reached 104.4 points in September. This marks a slight increase of 0.17% from the previous month and a year-on-year rise of 1.44%. The transportation capacity has seen a minor increase, indicating that both supply and demand are on a path to recovery.

When analyzing specific vehicle categories, there has been a slight month-to-month rebound across all types, and the year-on-year trends continue to show improvement. The full truckload index, which largely focuses on bulk commodities and regional transport, stood at 104.7 points, reflecting a 0.20% increase from August and a 1.64% rise compared to the same month last year. In the less-than-truckload segment, the light goods index saw a marginal increase of 0.01%, reaching 102.9 points, which is a year-on-year rise of 0.48%. Meanwhile, the heavy goods index rose by 0.24% to 104.7 points, showcasing a year-on-year increase of 1.72%.

Overall, the economic performance this month indicates a sustained recovery. The impact of policies designed to boost domestic demand and consumer spending is becoming more evident. As we enter the traditional peak production season, various positive factors are driving continued demand recovery. Weather-related challenges, such as extreme heat and floods, are subsiding, allowing for a modest growth in transportation capacity. Signs of recovery are appearing on both the supply and demand sides, which is leading to heightened market activity and a continued rise in the freight rate index from a relatively high level.

Looking back at data from July through September, the index has experienced three consecutive months of increases, gradually restoring it to a higher level for the year. Notably, with weather factors exerting less influence in September and positive market adjustments taking place, a small upward trend is being maintained, though the pace of growth has slowed.

Regionally, the freight rate indices have shown mixed results across the nine major areas. Particularly, indices in the Southwest and Yangtze River Delta regions have faced declines, while improvements have been noted in the Northeast, North China, Central China, and Pearl River Delta regions.

Looking ahead, analysts emphasize the importance of consolidating current demand and enhancing regulatory guidance to create a more orderly highway transportation market. This approach is expected to further stabilize operations within the highway transport sector. As we approach the fourth quarter, it is anticipated that the freight rate index may continue to experience fluctuations at the current high level.