The large-scale conflict in northern Myanmar has led to a tense situation along the roads from Muse County, which is on the China-Myanmar border, extending to Mandalay City. Freight costs have skyrocketed! The current bus fare from Muse to Mandalay is 350,000 kyat; from Mandalay to Muse, it's 450,000 kyat; from Mandalay to Lashio, it's 300,000 kyat; from Lashio to Mandalay, it's 250,000 kyat; from Taunggyi to Lashio, it's 150,000 kyat; and from Taunggyi to Loikaw, it's 430,000 kyat. Additionally, truck fees are even more absurd.
According to drivers, the distance from Muse to Mandalay is about 400 to 450 kilometers, but a truck carrying 30 tons of cargo would require freight costs of 40,000 to 50,000 yuan. It should be noted that most trucks operating in northern Myanmar are second-hand Chinese Dongfeng trucks, and the freight cost for one trip is almost as high as the cost of a truck itself, which is extremely high. Basically, the cost per kilometer is 100 yuan, and there is no room for negotiation.
The reason why the freight cost is so high for such a short distance is because the route from Muse to Mandalay passes through several checkpoints set up by local armed groups. At each checkpoint, a fee of around 80 to 100 yuan is required, and sometimes even higher, leading to a cumulative increase in tolls, making them extremely high. This is how various armed groups make their income. Multiple local armed groups, including the Arakan Army, the Kachin Independence Army, the Ta'ang National Liberation Army, the Karen National Liberation Army, and the People's Defense Forces, have occupied the roadsides. Any road that can accommodate trucks has a toll station, and there's no way to avoid it.
Therefore, the high freight cost is due to the high tolls, plus high fuel costs and high labor costs. All these expenses have increased, resulting in the trade volume between China and Myanmar not being able to rise. Now, it is no longer being counted, or if it is, the data is not reported, because the numbers are too bad. These local armed groups collect tolls on the highways, and there is no easy way to escape.
In addition, the Democratic Karen Buddhist Army (DKBA) has been suffering consecutive defeats, and the tolls have become even higher, as they need to compensate for the losses on the battlefield. In reality, high freight and toll costs will eventually lead to high costs, which will be reflected in the prices of goods themselves, making them even higher. This is a strategic goal that both China and Myanmar aim to achieve: to ensure that there are no independent toll stations along the roads in northern Myanmar, with only one border tax.
Now, as the Burmese military continues to advance northward, it actually benefits Sino-Myanmar trade. Our exports to Myanmar will see a significant increase in competitiveness. Otherwise, a pack of instant noodles that costs 1 yuan could be sold for 10 yuan in Mandalay, as the tolls along the way keep increasing the price infinitely. What else can be done? Therefore, the northern part of Myanmar cannot remain chaotic anymore. All these local armed groups must be defeated, and they must not be allowed to collect tolls on the roads anymore, otherwise trade will not be possible.
Original article: https://www.toutiao.com/article/1837789161145355/
Statement: The article represents the views of the author.