The shipping industry is focusing on building steel containers outside China to protect global trade from supply chain pressures and geopolitical rifts.
According to Financial Times, manufacturers and government bodies are developing factories across Asia and the US to mitigate an over-reliance on China. Vietnam’s new factories could eventually build around a sixth of the steel boxes typically produced in a year, while India is also expected to add sizeable capacity.
As companies and policymakers reconsider their dependence on Chinese manufacturers more broadly amid diplomatic tensions and the country’s increasing threats towards Taiwan, more flow is likely to flow to Vietnam, Financial Times reports.
At present, more than 95% of containers are made in the world’s second-largest economy, with the market dominated by three state-owned enterprises. A a result, China’s dominance of container production is seen as a “monopoly” of “an essential product”.
