Carl Bentzel, a commissioner at the Federal Maritime Commission in Washington, DC, has published a 28-page report detailing his year-long investigation into Chinese companies’ stranglehold on container and intermodal chassis manufacturing, along with a request that the Joe Biden administration takes action.
The report highlights China’s market dominance in worldwide container production, with Bentzel claiming that he sought to raise awareness of possible market manipulation that has exacerbated supply chain problems. According to the report, the three largest Chinese manufacturers control over 86 percent of the world’s intermodal chassis supply, as well as 95 percent of the world’s containers, including domestic train and truck intermodal containers in the United States.
“This report is important in what it represents – that as a country our maritime equipment and industry is increasingly dependent on China. The pandemic has illustrated how interdependent our supply chain and economy is with our global partners. We need to closely evaluate our partnerships,” said Bentzel.
The report, according to Bentzel, was created to spark discussion among policymakers about the long-term ramifications of relying only on Chinese manufacturers for containers and chassis in the United States and other countries.
Bentzel said that when demand for ocean containers surged, Chinese-based intermodal equipment makers were slow to ramp up production, raising the question of whether this was part of a purposeful price manipulation scheme.
Chinese container and chassis manufacturers are state-owned and regulated, according to the Department of Commerce in Washington, DC. They also get considerable government subsidies.
The report, according to Bentzel, was created to spark discussion among policymakers about the long-term ramifications of relying only on Chinese manufacturers for containers and chassis in the United States and other countries.
Bentzel said that when demand for ocean containers surged, Chinese-based intermodal equipment makers were slow to ramp up production, raising the question of whether this was part of a purposeful price manipulation scheme.
Chinese container and chassis manufacturers are state-owned and regulated, according to the Department of Commerce in Washington, DC. They also get considerable government subsidies.
Vietnam has recently stepped up preparations to develop container manufacturing as a viable option for China, with a number of plants expected to launch this year, albeit at a fraction of the capacity of Chinese factories.
