A recent article from The Load Star has brought to attention a glaring problem surrounding the world of shipping containers and chassis manufacturing. Specifically, the vast majority of shipping container and chassis production occurs exclusively in China.
Recent constraints on the supply of containers and chassis in the Western world has made it noticeable that China has a worldwide monopoly on the production of shipping containers. By extension, the world’s trade is almost entirely dependant on China’s ability (and willingness) to produce and supply equipment.
Due to the COVID-19 pandemic, China had shut down its manufacturing facilities in order to prevent the spread of the virus. Despite the rest of the world opening up, China’s continued pandemic restrictions have contributed to a slow reopening of the world’s economy since new equipment has been slow to reach the markets.
Additionally, China has been making an effort to support its local economy by cutting down the production of containers in favour of locally produced goods and services. Unsurprisingly, this has been problematic for the Western world which is heavily involved in international trade. Consequently, the US has been exploring the idea of classifying the shipping container as an integral component of trade, and is looking for alternative suppliers locally, or in other parts of the world.
Nevertheless, even if new suppliers are found, they would only be able to solve container supply imbalances in the future. A more immediate solution is needed to solve the current shortages of shipping containers and chassis.
It is good to note however, that moving away from reliance on China for such an essential component of trade, or reliance on any country for any one single resource, can be problematic. While the supply of containers continues to be low, our team at ATS Containers is working hard to maintain inventory across our Canadian locations.
We carry stock of new and used shipping containers, including specialized equipment such as refrigerated containers, dangerous goods units, and containers with various side openings. We also have the ability to modify new and used containers with a variety of options, including multiple points of access (ie. garage doors and roll-up doors), insulation, security features and much more.
For more information about the content discussed in this blog post, or to reference the original article, check out the following link.