US inquiries Chinese dominance in container production

Carl Bentzel, a commissioner at the Federal Maritime Commission in Washington DC, has released a 28-web site report next his calendar year-extended investigation into the stranglehold Chinese corporations have in the producing of containers and intermodal chassis, with a plea that the Joe Biden administration just take action.

The report attracts awareness to China’s current market command in world wide container producing with Bentzel expressing he preferred to build awareness of prospective sector manipulation that has added to supply chain disruptions. According to the examine, the a few biggest Chinese companies manage above 86% of the world’s provide of intermodal chassis, and all those same firms manufacture above 95% of containers in the world’s market, together with US domestic train and truck intermodal containers.

As a nation our maritime devices and field is increasingly dependent on China

“This report is essential in what it signifies – that as a region our maritime devices and marketplace is increasingly dependent on China. The pandemic has illustrated how interdependent our supply chain and economic system is with our world-wide partners. We require to intently consider our partnerships,” said Bentzel.

The report, Bentzel stated, was built to crank out debate among policymakers about what the longer-term consequences are to the United States and other nations of relying wholly on Chinese producers as the resource for containers and chassis.

When demand from customers for ocean containers increased, Bentzel argued Chinese-primarily based intermodal products makers had been slow in ramping up manufacturing, elevating the query, he argued, of irrespective of whether this was part of a deliberate strategy to manipulate prices.

The Division of Commerce in Washington DC has established that Chinese container and chassis brands are point out-owned and managed and are the recipients of large authorities subsidies.

“[T]he situation of Chinese condition regulate of manufacture of containers and chassis situation wants significantly nearer evaluation,” a launch accompanying the report stated.

Not long ago Vietnam has stepped up options to raise container producing as an choice to China, with a selection of factories established to open up this 12 months, albeit continue to only able to offer a very small percentage in comparison to Chinese output.