China's export snag: containers are running short
China’s export engine is humming again.
The country’s overseas shipments surged by 21% in November from a year ago.
That as factories cranked out appliances, toys, protective equipment and other goods in high demand.
Just one problem though.
There’s a shortage of shipping containers to get the exports to their final destinations.
Lopsided trade flows are to blame.
Many other countries are shipping less stuff as health issues crimp factory output.
That leaves China exporting three containers of goods for every one that comes back.
Health worries also have cargo terminals working slower than usual.
Empty containers are piling up at ports in Europe and the U.S. as a result.
The result is a big spike in shipping costs.
Sending a 40-foot container from China to the U.S. East Coast now costs almost 5,000 dollars - up 85% since early June.
Rates to Europe have jumped 142% over the same period.
Factory owners in China complain that their stock is piling up as a result.
Some told Reuters they couldn’t get space on ships even by paying double the normal rate.
Airliners stuck on the ground aren’t helping.
Passenger flights would normally carry lots of freight in the hold too.
Now industry experts say the cargo crunch won’t ease until the planes start flying again, and vaccines have restored some kind of normality.
Exactly how long that will take, remains an open question.
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