Take on the cabotage: carriers complain about dumping by competitors from China
Chinese carriers have started operating in Russia according to the cabotage scheme, which is now allowed only to firms from the EAEU countries, the Avtogruzex association told Izvestia. Trucks from China enter the country with cargo, but after delivery, in order not to go empty, they take additional orders across the Russian Federation, dumping and reducing tariffs by 20% below the market. The Chinese have a number of economic advantages — as long as they do not pay fees and fines for overloading. According to the industry, only companies from the gray zone are able to compete with them in such conditions. Domestic carriers have already sent a letter to the Cabinet of Ministers asking them to resolve the issue — according to them, due to the actions of their foreign colleagues, they found themselves in a pre-bankruptcy state. At the same time, the Ministry of Transport recalled that at the end of February, a law was passed providing for fines for illegal cabotage by foreigners. And in September, it is planned to launch an information system for monitoring international road transport.
How Asian carriers are lowering prices
Russian trucking companies from the Avtogruzex association complained to Mikhail Mishustin, Chairman of the Government of the Russian Federation, about Chinese competitors who began dumping in March 2025, squeezing domestic transport companies from routes in the country. The Association also sent a letter to Rostransnadzor complaining about violations of the rules of international transportation by Asian partners.
"The Chinese take on any orders, regardless of whether the transport meets the requirements or the complexity of the task, and they call prices below market prices," Artem Vaskanyan, Deputy General Director for Logistics at 3PL operator NC Logistic, told Izvestia.
In fact, they are engaged in coastal transportation, which from March 1, 2025 is allowed only for companies from the EAEU countries. We are talking about the transportation of goods by foreign companies with loading and unloading inside the country. But there is no cabotage agreement with China, the market participant notes.
Foreign drivers disguise it as international transportation with partial unloading at several points in Russia, according to a letter from the association to Rostransnadzor.
After completing an international flight, they seriously take the cargo for delivery across the Russian Federation, although under current legislation they do not have the right to do so, the association notes. It is still difficult for law enforcement officers to check whether the unloading was complete.
"There are no official statistics on cabotage in Chinese vehicles — this is the gray side of transportation,— the GLT group of companies says.
According to Avtogruzex, the difference in tariffs between Russian transport workers working in the legal field and others reaches 20%.
"Our companies are losing cargo that they transported from the borders with China,— Artyom Vaskanyan said. — For example, a Chinese truck brought cargo to Yekaterinburg. In order not to return empty, the driver takes a local order and takes it to Blagoveshchensk. It can perform the flight cheaper than Russian carriers.
As reported in Avtogruzex, gray cabotages can carry combined cargoes, machinery and construction equipment, products (sugar, grains, etc.), building materials, food products, household appliances, electronics (from smartphones to chips) and industrial equipment. The list may also include consumer goods such as clothing, furniture, and consumer goods.
If, after completing the international transportation, the Chinese company took a reverse load and made a series of flights with unloading on the territory of Russia, then this is a violation, said Vadim Filatov, President of Avtogruzex.
In its letter, the Association asked Rostransnadzor to verify compliance with the current legislation of the Russian Federation by Chinese carriers. It is emphasized that not all international transport companies from China are engaged in gray cabotage, but only unscrupulous ones that violate the agreements of the two countries.
What harm can gray cabotage do?
— Chinese carriers can reduce prices due to favorable leasing rates, equipment prices, national benefits, etc. Foreigners have a different tax burden, as a result, the cost of the logistics process is lower," the Department of International Transportation at GLT Group told Izvestia.
Russian logisticians see this as an unequal business environment.
— The competitive advantages of foreigners are that they have no problems with spare parts and vehicle upgrades. They are in a more favorable economic position," Vitaly Skuratov, Director of Transport Logistics at Baikal—Service TC LLC, told Izvestia.
According to Andrey Yesin, director of the ILC branch in Shanghai, automatic weight control points today do not fine trucks with Chinese license plates (they are not in Russian databases), which is why there is less risk for foreigners to earn multimillion-dollar fines when driving overloaded.
The general economic situation also imposes additional difficulties on Russian trucking companies.
"By the first quarter of 2025, the cost of cargo transportation in Russia increased by 12%, lease payments rose to 27-28%, and repair costs increased by 20%," Vadim Filatov told Izvestia with reference to ATI.su .
It is difficult to cover them, as there is a significant shortage of goods on the market, and the average tariff level has decreased by 19.1%, to 52.3 rubles per km. As a result, the carriers have already found themselves in a pre-bankruptcy state, the expert says. Players from the gray zone can work with such tariffs, dumping by optimizing taxes and fees, the market participant notes.
Tariff reductions due to unfair competition from foreigners may lead to the withdrawal of a number of Russian carriers from the market, he believes.
In its letter to the Government, the Avtogruzex Association asks the authorities to more actively monitor the situation with international road transport in light of the risk of unequal competition from foreigners.
— It is important to find out which shippers in Russia gray coasters most often cooperate with, and then contact the Federal Tax Service with a request to check them, — Vadim Filatov believes. — And it is important to establish Rostransnadzor mobile control points on transit routes.
In the future, the transition to the Goslog digital platform with integration with similar platforms in China and India will allow to eliminate violations of international transportation, the market participant notes.
The Ministry of Transport told Izvestia that on February 28, 2025, a law was passed punishing the illegal implementation of coastal trucking by foreigners. The fine is from 150 thousand to 200 thousand rubles.
Violators will be monitored in a permanent raid mode at stationary and mobile points, the Rostransnadzor emphasizes.
A separate information system is expected to be put into operation from September 1, 2025, to control international traffic and cabotage. The Ministry of Transport added that control over coastal trucking cannot be carried out without putting it into operation.
Izvestia sent inquiries to the Russian government and the Federal Customs Service, as well as to the Chinese Embassy and major foreign carriers.
Where do foreign transport workers work
If Chinese companies are engaged in coastal transportation, which is allowed only for the EAEU countries, this is due to insufficient local regulation and legal loopholes, Mikhail Koptev, commercial director of the Skif-Cargo federal transport company, told Izvestia.
Foreigners on flights in Russia reduce prices due to low operating costs, subsidies from their governments or effective business models, a market participant reported.
—Aggressive promotion and dumping are features of the mentality of Chinese carriers,— said Artyom Vaskanyan. — Clannishness and the language barrier make adjustments to their work. Often, only a few drivers speak Russian in a team, which makes the rest dependent on the leader and forces them to travel as part of a group. This, in turn, makes it difficult to communicate and monitor the progress of transportation.
"If the conditions for doing business remain the same, it will become difficult for Russian companies to resist Chinese companies with their access to cheap financing and modern transport," Artyom Vaskanyan believes.
The area of interest of foreign companies includes the southwestern and western directions (towards Belarus), the southern directions (towards Armenia), part of the Volga Federal District, the southern Urals and Siberia (directions towards Kazakhstan and Kyrgyzstan), Eduard Mironov, Director of Procurement of FM Logistic transport services in Russia, told Izvestia.
In the current situation, many foreign companies are trying to carry out coastal transportation, despite possible fines for each illegal transportation from 150,000 to 200,000 rubles, the expert notes.
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