With 20% of dedicated‑line operators shutting down or switching industries, vacant storefronts are popping up everywhere in logistics parks. What’s going on with the dedicated‑line market here?

With living space shrinking, how can dedicated‑line logistics break the deadlock?

Has logistics—linking production on one end and consumption on the other—returned to normal? ?
In September, data released by the China Federation of Logistics and Purchasing showed that China’s logistics industry prosperity index stood at 46.3% in August, down 2.3 percentage points from the previous month. Analysts note that the recovery and rebound in social logistics demand continue to face some volatility and uncertainty.
Data from the Henan Provincial Logistics and Procurement Federation also indicate that across the entire province of Henan, In August, the logistics industry’s business activity index stood at 46.3%, down 3.2 percentage points from the previous month—marking the second consecutive monthly decline.
Industry sources reveal that, amid declining cargo volumes, persistently high oil prices, and rising labor costs, Zhengzhou’s dedicated‑line logistics sector has already… 20% will be shut down or eliminated.

Zhengzhou Wholesale Market

Incident: Several dedicated-route logistics companies within a logistics park were denied relocation.

One evening in mid-September, just as logistics companies were bustling with vehicles arriving and loading/unloading goods, the entrance to a logistics park in Xinzheng remained heavily congested for several hours, only easing by the following morning.
Who’s blocking the door? Why are they blocking it?
An informed source revealed that, Since the second half of 2021, specialized‑line logistics operators have faced mounting difficulties due to declining cargo volumes and rising fuel prices. At that time, several logistics companies approached the park’s management, seeking to reduce or waive some rent in response to government calls, but their requests were denied. By year’s end, a handful of these specialized‑line carriers had already relocated from the park to other logistics hubs.
Since the beginning of this year, parcel‑delivery volumes on all dedicated routes have yet to show any improvement, while fuel prices continue to rise and labor costs remain stubbornly high, further intensifying competition within the industry.
According to data from Tianyancha, as of this year… On September 18, the number of logistics companies in Xinzheng exceeded 1,300.
Cutting costs and increasing revenue are two effective strategies for safeguarding corporate profits. To ensure survival, many dedicated‑line providers are seeking more cost‑effective data center parks.
Coincidentally, a newly developed logistics park in Xinzheng—converted from an existing parking lot—is currently seeking tenants, with rents as low as just over ten yuan per square meter, compared to the older industrial park. At a price of just over 20 yuan, you can save six or seven yuan per square meter.
When it’s impossible to increase cargo volume, cutting expenses is the key to making a profit. With this in mind, several dedicated‑line logistics companies sought to relocate from the old industrial park to the new one. However, the operator of the old park rejected their request, while the companies insisted on moving. At that point, the old park’s operator pulled out its trump card: citing various reasons to deduct the deposits previously paid by the dedicated‑line logistics firms.
With business operations now so difficult, if you don’t grant me a rent reduction, I’ll find a cheaper tenant. Yet you refuse to let me leave and even deduct money from my deposit. As a result, several logistics companies went to the logistics park to demand an explanation, leading to the aforementioned gate‑blocking incident.

Version 1: Since the beginning of this year, Zhengzhou has had approximately… 20% of dedicated‑line logistics providers have shut down or switched industries.

Some time ago, a Douyin livestreamer Yuan Fengming, known as the “leader in logistics,” stated in an interview with Top News·Henan Business Daily that there are more than 2,000 logistics companies operating dedicated routes to Xi’an, but only 30% are currently profitable, while the remaining 70% are struggling to maintain a break-even balance.
What about the dedicated logistics service in Zhengzhou?

Xu Weihua, General Manager of the Zhengzhou Operations Region at Dekun Logistics Group, stated that, Around 2010, specialized logistics services in Zhengzhou reached their peak, with nearly ten thousand operators. Following the relocation of urban wholesale markets outside the city in 2012, logistics parks and enterprises gradually moved beyond the Fourth Ring Road. During this period, the specialized‑line logistics sector had already undergone a major reshuffling. In the past two years, amid the ongoing, frequent outbreaks, declining cargo volumes at specialized markets, highway checkpoint restrictions, stringent nucleic acid testing, rising fuel prices, and increasing labor costs have all severely squeezed the operating space of specialized‑line logistics, pushing the industry into further decline.
“Since the beginning of this year, about 20% of dedicated routes in Zhengzhou have ceased operations,” said Xu Weihua.
Xue Fuyuan of the Software Marketing Department at Lanqiao Logistics stated, It’s not just Zhengzhou—Guangzhou is the same: every month, each logistics park sees three to five dedicated‑line carriers dispatching shipments.
Although companies are exiting the logistics sector, the ways they do so vary: some see a sharp drop in cargo volumes, rendering operations unsustainable and forcing them to close their service outlets; others are absorbed by larger competitors, becoming part of an acquisition or merger; and the most dire scenario involves a broken capital chain, leading to unpaid customer collections and wage arrears, ultimately compelling them to shut down entirely.
Specialized lines are an indispensable part of the logistics chain, serving as the final link in handling full-truckload and less-than-truckload shipments. It is reported that in the logistics industry, there are… Over 80% of the shipments are handled by dedicated-line carriers.
However, due to their small scale and the prevalence of family-run operations, specialized logistics companies are… As representatives of “small, scattered, and disorganized” enterprises, they also tend to be the least visible players in the logistics chain. In logistics plans at all levels of government, e‑commerce logistics, cold‑chain logistics, express delivery logistics, air freight logistics, and warehousing logistics are routinely highlighted—but “dedicated‑line logistics” is rarely mentioned, and their needs are seldom factored into site‑planning for logistics facilities.

Version 2: Once in high demand, logistics parks now have vacant spaces everywhere.

Most of Zhengzhou’s dedicated‑line logistics operations are concentrated in logistics parks such as Xinzheng and Xinmi.
According to data from Tianyancha, the number of logistics enterprises in these two regions has already exceeded 2,000 companies, over 95% of which are dedicated‑line logistics providers.
For example, at the Dongfang Dayun Logistics Park in Xinmi, the dedicated‑line logistics companies that have moved in include: More than 170 companies; at the Yuzé Logistics Park in Xinzheng, over 70 dedicated‑line logistics firms have set up operations. Similarly, the Zhongbang Haoyun Logistics Park, the Sanzhi Asia‑Europe Logistics Park, the Chun Tian Logistics Park, and others are all home to dedicated‑line logistics providers as well.
A relevant official from Zhongbang Haoyun Logistics stated that, Before the COVID-19 pandemic struck in 2020, more than 20 logistics parks in Xinzheng were almost fully occupied, with virtually no available space. After more than two years of the pandemic, many hidden vulnerabilities have been laid bare, and numerous logistics parks now have vacant spaces.
Top News • According to on-the-ground inquiries by a reporter from the Henan Business Daily, Yuzze Logistics Park has over 80,000 square meters available for lease, with more than 20,000 square meters currently vacant; Minsheng E‑commerce Logistics Park is more than 30,000 square meters empty; Shenzhen International (formerly Qianlong Logistics Park) has over 30,000 square meters unoccupied; Jinqiao Logistics Park is more than 2,000 square meters vacant; Heibao Logistics Park spans 100,000 square meters, with less than 1,000 square meters currently unoccupied; Mingzhu Logistics Park is more than 3,000 square meters empty; and Dongfang Dayun Logistics Park also has several thousand square meters unoccupied.
Yuan Bohé, Secretary-General of the Henan International Logistics Chamber of Commerce and Chairman of Yuzé Logistics Park, stated that, The vacancy rate at logistics parks has risen for two reasons: first, the pandemic’s lingering effects have yet to allow the industry to return to normal operations; second, in recent years, newly opened logistics parks in Xinzheng and Xinmi have, once operational, siphoned off a portion of dedicated‑line freight traffic.
With the opening of Dekun Logistics Park, Sijian’an Logistics relocated there; meanwhile, Yuanhang Logistics, which had previously operated under Shenzhen International, this year… In May, JunDa Logistics Park was relocated; JinGui Logistics moved from ChunTian Logistics Park to DaZhi Logistics Park; WanFang Logistics shifted from ChunTian Logistics Park to JunDa Logistics Park; and ChaoDa Logistics relocated from Dongfang Dayun Logistics Park to YuZe Logistics Park.

The head of a dedicated‑line logistics company stated that the pandemic has led to a decline in foreign trade for exporting enterprises, significantly impacting specialized export‑route carriers as well. For example, routes serving Zhengzhou… - Many dedicated‑line carriers operating between Qingdao and Tianjin, and between Zhengzhou and Shanghai, used to dispatch 1–2 17.5‑meter‑long trucks per day before the pandemic. Now, they can only send one truck every three days, totaling just 10 trucks per month, with cargo volumes down by two‑thirds. In this scenario, once manufacturing firms relocate, dedicated‑line logistics providers will follow suit and move out of Zhengzhou, further increasing the vacancy rate in logistics parks.

Analysis: Once a logistics company defaults on employee wages, it is only a short step away from bankruptcy.

How can you determine whether a logistics company is facing a cash-flow shortage?
Deeply rooted in the logistics industry A veteran CEO of a logistics company, with over 20 years of experience, told a story.
Some time ago, two candidates came to the company for interviews. During the interview, he asked one of them: “Since you’re still in the logistics industry, why did you leave your previous employer?”
Employees resign for one of two reasons: either their pay hasn’t been settled, or they feel wronged. As expected, both employees gave the same answer: their former employer had been withholding wages for several months.
“Salaries are what employees rely on to meet their basic needs. Some have elderly parents to support and young children to raise; others are paying off mortgages or car loans, while still others must cover their children’s various education expenses. When workers toil for a month or several months only to be unable to receive their pay on time, it signals that the company is facing serious financial difficulties.”
The CEO stated that, at present, rent and labor costs remain the two largest components of logistics companies’ expenses. To ensure the company’s smooth operations, these two areas constitute fixed expenditures that will not be significantly cut. Should employee wages fall into arrears, it would signal that the company’s financial troubles have become so severe that they can no longer be concealed.
Another industry insider, who asked not to be named, revealed that… In mid-June, a logistics company in Xinzheng came under scrutiny after it was revealed that it had failed to settle over 2 million yuan in freight charges owed to more than 30 truck drivers, as well as over 1 million yuan in employee wages.
Yuan Bohé stated that, Currently, dedicated logistics services in Zhengzhou. 30% are operating at a loss, while approximately 70% are profitable or breaking even.
As a result, within the Yuzhe Logistics Park… The “Driver’s Home” hotel, which before the pandemic charged 88 yuan per room and was almost always fully booked, has now lowered its rates to 68 yuan. With 88 rooms in total, it now averages just over 20 occupied rooms per day—three-quarters fewer guests than before.