What aspects of logistics market control need to be noted

For many years, Feidu Logistics has provided convenience for many new and old customers. Based on the concept of honest service, the company is responsible for meeting the needs of every customer in the logistics field. Today, a Thai logistics company introduced to you the aspects of logistics market control that need to be noted:

1. The failure of government regulation will constrain the development of the logistics market

The government's regulation of the logistics market is not always effective, and in many cases it is inefficient, such as market access controls that cannot guarantee the achievement of supply-demand balance. The government has restricted the entry of foreign logistics companies, making it difficult for domestic logistics companies to provide comprehensive logistics services in a short period of time. In the logistics market, a high-quality and comprehensive logistics service market may not be enough, and there are too many low-quality logistics services. There are two situations where the government cannot control the logistics market: one is the transitional intervention of the government in the logistics market;

2. A prerequisite for effective government regulation

These two situations will limit the development of the logistics market. The prerequisite for effective government regulation is not easy to implement, and there are many prerequisites. For example, the government has sufficient predictive ability for the development of the logistics market; The government has sufficient information to formulate control measures; And the overall social benefits of government implemented control measures, etc. However, the government's predictive ability is limited and subject to certain conditions, there are significant obstacles to obtaining complete information, and the government may be interfered with by government interests.

3. Government incentives play an important role in institutional supply.

From a regulatory perspective, government agencies' preference for "maintaining market stability" and avoiding factors such as excessive losses and bankruptcies of logistics companies that affect social stability also have a significant impact on their preference for "power". Various signs indicate that the goal of market regulation in China is to develop towards rent-seeking, and market regulation has a clear rent-seeking nature. This is one of the obstacles to establishing a sound logistics market economy system in China.