January 30, 2006
The Problem of the “Empties”
China trade unbalances shipping: Vessels sailing to Asia empty, by Thomas Fuller.
Of every 100 containers that crossed the Pacific Ocean from Asia to North America last year, 60 came back empty …. The containers that did come back full were often transported at a steep discount for lack of demand. On European routes, 41 percent came back to Asia empty last year …. There are ships that arrive full in China, from countries like Brazil and Australia and from the Middle East. But these carry commodities like iron ore and coal.
Furniture, toys and footwear were the top three items transported by container last year to the United States from China. In the other direction, waste paper and other paper products were by far the largest commodity shipped from the United States to China, followed by scrap metal and raw cotton.
But shipping imbalances between China and the West are as ancient as the silk looms that drew foreigners to the Middle Kingdom centuries ago. Europeans in the 17th and 18th centuries wanted Chinese silks, porcelains and teas, but few Chinese wanted to buy European wine or wool. The equation shifted to Europe’s advantage with the export of Indian opium to China in the 18th and 19th centuries.
‘With the exception of opium, the Chinese have rarely experienced a trade deficit in their economic history.’
January 31st, 2006 at 12:37 pm
Chairman give us a very interesting term of imbalance between china and the west. To occupy these 60% empty containers , it maybe give us a hint of possible business with very low cost of shipping . Water, wine , luxuries …etc. Do you agree or have some ideas ?
Thanks .
February 2nd, 2006 at 10:18 pm
I thought that the Chinese might want the paper certificates for their Treasury bonds delivered… those would fill quite a few freighters.
February 27th, 2006 at 2:45 pm
I wonder if such “empties” problems could give a chance to secondary ports in Asia, which would specialise in the consolidation / management of empty containers. How do you think it could be possible ? I think about the just-in-time provision of empties from smaller ports to bigger ports (the latter facing congestion). Thank you for your answer.
February 28th, 2006 at 2:02 pm
Maybe… though if it were possible they’d probably be doing it already.
October 7th, 2006 at 3:00 am
Too funny that your site came up as one of the top hits when I was doing research at work. Keyword: “waste paper”.
October 7th, 2006 at 7:38 am
G.Who: This site is one of the top hits for many statistically improbable phrases. ;-)