Around the Spring Festival this year, a new coronary pneumonia epidemic occurred suddenly. Due to the impact of the epidemic, toll roads across the country will be exempted from vehicle tolls starting from 0:00 on February 17, and the National Two Conferences held in March have also been postponed in accordance with established practice. As the domestic epidemic prevention and control situation continues to improve, and all industries and industries resume steadily and resume production, relevant departments have decided to resume highway tolls on May 6, and restart the two sessions on May 22.
The 17th meeting of the 13th NPC Standing Committee voted on the 29th to decide on the timing of the third session of the 13th NPC. According to the decision, the Third Session of the Thirteenth National People's Congress will be held in Beijing on May 22, 2020.
The thirty-fifth chairman meeting of the 13th CPPCC National Committee was held in Beijing a few days ago. The meeting recommended that the third session of the 13th CPPCC National Committee be held in Beijing on May 21.
The convening of the two sessions of the nation is tantamount to announcing the official conclusion of the "People's War on Epidemic Prevention," which is also a sign of a full return to normal production and living order and a formal "restart" of China's economy and society.
The two associations are not just "restart buttons", they are the charge. The economic recovery cannot be recovered with one click, how to go? The two sessions will set the GDP target for this year and review the budget, which will be crucial for the future economic trend. The gradual recovery of the economy will help the chemical market gradually stabilize and return to the right track.
Source: Ministry of Communications
With the consent of the State Council, the toll roads nationwide will be restored. The relevant matters are announced as follows:
Recovery time. Starting at 0:00 on May 6, 2020, toll roads (including toll bridges and tunnels) that have been approved according to law will be resumed.
Relative to whether high-speed tolls are resumed, most companies are more concerned about what will happen to freight charges in the future, and whether they will rise? Will the price of chemical products be fully raised!
Freight rates fluctuate and rise in April
In 2020, the price of logistics freight fluctuated greatly. At the beginning of the year, the demand for freight was greater than the supply of capacity. Especially during the Spring Festival, drivers were mostly closed, and affected by epidemic control measures such as the closing of some highway entrances and exits, freight rates continued to be high. However, with the plunge of international oil, the implementation of policies such as the reduction of domestic oil prices, the exemption of tolls on expressways, and the fact that the drivers resumed work but the supply of goods was insufficient, the freight rates fell from February to March. It dropped by about 15% in early January.
With the improvement of the domestic epidemic situation, the “fast forward button” is pressed for resumption of production in most areas, the resumption of construction units is accelerated, and the demand for bulk materials and freight is increased. In the case of limited logistics capacity, the increase in demand will also drive the supply and demand relationship. Changes, freight rates have risen in early April.
Increased freight rates will drive up the cost of chemicals
Insiders revealed that high-speed tolls are a relatively large part of the cost of freight transportation and directly determine the direction of logistics prices. Once the charges are restored, it will inevitably have an impact on freight rates, causing freight rates to rise. The increase in freight rates will undoubtedly increase the cost of chemical companies, so in order to increase profits or at least not to lose money, the prices of some raw materials will rise.
Since the supply chain is a multi-level concept, any chain interruption will conduct the entire process. The market is picking up, and transportation around the country is also recovering rapidly. With the combination of multiple factors, the freight price gradually rises, or it will cause another wave of small peak prices for chemical raw materials in the later period.
