Convertible Trailer Manufacturing Worldwide, (CTM WW), signed an MOU with Changjiu Chuzhou Special Vehicle Company in Chuzhou, Anhui Province, China. This strategic partnership is aimed at introducing the Convertible Trailer system into the Chinese marketplace.
CTM WW’s Convertible technology offers additional versatility in load options as almost 100% of auto carrier equipment in the world today is designed for single purpose, if there aren’t vehicles to ship on the return leg of a trip, conventional auto carriers will return empty. This represents an over 40% empty mile loss in the finished vehicle logistics industry, a $75 billion equivalent annual loss in the automotive sector worldwide.
The Convertible Trailer system offers the ability to convert its decks down to a flat deck and allow alternative freight to be shipped such as containers, pallets, over dimensional vehicles, the AutoBox etc.
Along with CFLP and others, Changjiu Group, the largest privately held automotive logistics group in China, has been working on transportation regulatory change in China for the past several years, which has resulted in the new GB1589 2016 regulation.
Prior to its implementation, most of the auto carrier asset base in China ran illegally: over width, over length and over weight. The standard in the industry was to simply pay a fine for these violations and continue on their journey. This has since changed and now the demand for legal auto carriers is very strong as operating with illegal equipment in China is not permitted.
The new regulation though, has significantly reduced outbound load factors down to 8 or 9 vehicles from the previous average of 15 vehicles. With return trips being empty the majority of the time, the Convertible solution will help gain back these losses while significantly improving safety, efficiency, profitability and environmental impact.
“This will give our company a tremendous opportunity to commercially introduce and integrate the Convertible concept into the automotive industry. China is fast becoming an innovation hub and I am pleased to partner with this marketplace. We plan to set a strong example for the rest of the world that our technology will improve efficiencies and cut out unnecessary waste in the largest auto market in the world,” said Bill Pawluk, CEO, CTM Worldwide.
Changjiu Chuzhou Special Vehicle Company in Chuzhou has been operating for less than a year and they have demonstrated their ability to produce 6000 units annually using the latest manufacturing technology in the market.
There is a massive market demand in China and this will continue for the next several years as the entire auto carrier asset base must be replaced with legal equipment. CTM WW will be looking forward to finally entering the Chinese market with their innovative line of products. CTM WW is excited to be doing so with a world class auto carrier manufacturer like Changjiu Group.
“Changjiu Group and CCC have come together based on the common desire to solve the current problems of today’s car carrier, and are looking forward to working together to make more contributions to the automotive logistics industry in China and worldwide,” said Wang Xin, CEO, Changjiu SV Company.