The "Difficulties" Faced by China in the Field of Trailer Chassis and Containers

China Review Agency, Hong Kong, April 8 (Xinhua) - Amidst the Ukrainian war and the outbreak of the Asian pandemic, the global supply chain crisis is still ongoing. However, what has not received enough attention is that the oscillations between maritime delays and the surge in demand are breaking the delicate linkage that is crucial for maintaining the normal operation of (global) logistics.

This is a drone photo taken at Yangpu International Container Terminal in Yangpu Economic Development Zone, Hainan on May 26, 2021. Xinhua News Agency

The American Outlook magazine published an article on April 6th titled "China's" Challenges "in the Trailer Chassis and Container Industry." The article stated that shipping containers are used to achieve cross ocean transportation of goods, while trailer chassis transport containers out of ports and inland. If there are not enough containers and trailer chassis, the supply chain rhythm will be disrupted, leading to comprehensive congestion. A report from the Federal Maritime Commission (FMC) in the United States reveals a shocking reality: almost all container and trailer chassis in the world are made in China. The report states that three major Chinese companies produce nearly 82% of global containers. Adding in some relatively small Chinese enterprises, China accounts for over 95%.

In fact, all 44 million standard size containers and approximately 86% of intermodal trailer chassis used by the global shipping industry are "made in China". Compared to early 2020, the price of standard containers has almost doubled today. More importantly, the shortage of both affects the entire global supply chain. Our country (the United States) has recognized the necessity and value of specific products such as semiconductors, "FMC member Carl Benzel pointed out in the aforementioned report," but has not yet recognized our absolute dependence on containerized transportation.