The shipping industry is increasing efforts to veer away from its reliance on China for steel container production amid tensions in Taiwan, the Financial Times reports. China dominates the container production market, manufacturing some 95% of the world’s containers, mainly through three state-owned firms, the FT reports, citing data from maritime consultancy Drewry. This overreliance was evident during the covid-19 pandemic, when Chinese companies were slow to increase production. Some manufacturers and governments have turned to establishing factories in other countries like Vietnam and India to mitigate future geopolitical or trade disruptions, the outlet writes.

Some worry China’s monopoly is too strong: Some individuals in the shipping industry are skeptical as to how much capacity can be shifted to other markets, the outlet writes. China has low steel and labor costs and fast production rates that are difficult to match elsewhere, Freightos Asia Pacific managing director Joyce Tai said.

Bloomberg Businessweek has labeled Vietnam, Poland, Mexico, Morocco and Indonesia as connectors of global trade amid wider geopolitical rifts and heightened US-China tensions. The five nations collectively recorded USD 4 tn in economic output in 2022 and look to establish themselves as novel links between the US and China, and between China, Europe and other Asian economies. The countries’ geographic locations, abilities to streamline trade and their focus on strategic manufacturing industries, has positioned them as key trade hubs, while their links to China makes the “decoupling” between China and the US easier.

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  • Concerns are growing over the potential impacts of political instability and wars on the Middle East’s aviation sector, Zawya quotes Director General of IATA Willie Walsh as saying.
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