04
Jul
11

China eyes big increases in Container movement

Shanghai port, the world’s busiest for containers, expects volumes to rise about 10 percent annually for the next five years. Manufacturers are opening plants in western and inland China in search of lower-cost labor. The world’s manufacturing boom town shows no sign of slowing down anytime soon.

The Great Wall

Chinese Strengths Run Far Inland

Last year, Foxconn, the company that makes many parts for Apple iPads and many other technology companies came under fire for some of it’s work practices. Part of that was due to wages. Foxconn’s largest operation is in Shenzhen, China. With a population of almost 10 million, Shenzhen is a sprawling metropolis just over the border from Hong Kong that is bringing people from rural areas in search of higher paying jobs.

There’s one way to fix that. Cities pay higher, because living expenses are higher and that’s where all the companies are. T fix that companies like Foxconn are taking their acts on the road. This expansion will fuel what has already been unprecedented growth in China for the past decade.

The same thing happens in every developing country. Industries move, people follow. The combination of the two causes more jobs, more money and more big cities to sprout up.

A River Runs to it

Supplying the Shanghai port with the bulk of its domestic cargo is the Yangtze River. The largest river in China and the third largest river in the world, whose nickname is also the “Golden Waterway”, handled 1.34 billion tons of cargo in 2009 more than triple 2000’s volumes. Rising production headed west will more than likely follow this monster inland.

Government officials have said that container traffic in 2011 is set to increase 12%, which is likely enough to keep it ahead of Singapore for cargo-box volumes, said Chen Xuyuan, chairman of harbor operator Shanghai International Port (Group) Co., said in a June 23 interview.

Cargo volumes increased 16 percent in 2010 as the end of the global recession caused an increase in shipments of Chinese-made auto parts, furniture and toys to the U.S. and Europe. “Last year, we saw incredible growth,” Chen said. “This year, traffic is growing at a more normal and healthy pace.”

In 2010 Shanghai overtook Singapore as the world’s busiest container port. During the year Shanghai moved 29.05 million 20-foot boxes compared with Singapore’s total of 28.4 million. Shanghai Ports has handled 12.7 million containers in the first five months of 2011, compared to 12.1 million by their southern rival.

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Image Courtesy of Magical World

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Gain unearned income. Own shipping containers and lease them to us. We contract with companies who need to ship materials.

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