Page 34 - Taiwan Machinery 2021-09 Edition

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INDUSTRY REPORT

TaipeiPLAS is among the top six global trade shows Shipping Woes Worsen Amid Chinese Port
in its industry and ranked in the top three in Asia, marking
its reputation as a crucial B2B platform among Taiwanese Closures
plastics and rubber machinery and parts suppliers to With China as the world’s major exporter of goods, any
expand business opportunities.
port or factory closures could mean introducing further
ripples across the supply chain. As China contended with
SEA Hard-Hit by Latest Wave its Delta outbreak, a local case found in Ningbo’s port led
to the suspension of the Meidong Container Terminal and
The global supply chain, already suffering from Meishan free port area at the Port of Ningbo-Zhoushan till
congestion and rising prices, will be weathering a further further notice as of mid-August, with Meishan serving as a
challenge as the pandemic worsens in manufacturing hubs key terminal for servicing shipments to Europe and North
like Vietnam, Thailand, and other Southeast Asian nations. America.

As of writing in August, daily cases in Southeast Asian However, media reports say other areas in Zhoushan
countries are in the thousands and more, with relevant Port are still in operation. Shipping and container
authorities warning that numbers could double by mid- transportation companies like Hapag-Lloyd, Maersk, CMA
September if further preventive measures are not taken CGM, and COSCO Shipping have rerouted their ships to
immediately. Also worryingly is how the Philippines Shanghai.
recorded its first case of the Lambda variant. The little-
understood variant was previously concentrated in South The situation would worsen the already tested global
America and first labeled as a “variant of interest” by the supply chain. Over 313 shipping containers are stuck
World Health Organization on June 14. waiting to enter or to leave ports at global harbors, with
markets expecting that factors such as shortages of
An Economic Daily News reported the United Nations’ containers, cabins, labor, and vehicles will continue until
estimation that 42% of the world’s exports came from Asia. the end of the year.
As the manufacturing hub, many factories in the SEA region
were reported to have their workers sleep in the factory to Asian-based investors have also pointed out that port
maintain production and reduce outside contact. congestion will worsen if the Meishan Port area remains
closed and local authorities fail to contain the latest
In the same news report, Singaporean-based consulting COVID-19 outbreak. Freight brokers cited route prices for
agency ATC Executive Director Deborah Elms warned that eastern Asia to North America could continue to rise as the
the Delta variant could severely impact Asia’s trade. French pandemic impacts supply. However, there is also the fact
trade bank Natixis estimated that while SEA countries that shipping prices for European-bound routes have yet
like Indonesia, Malaysia, Vietnam, and Thailand make up to see an uptick ahead of the end of August. On the other
5.7% of the world’s total export rate, impacted export from hand, local Chinese media reported that Chinese trading
these areas could severely hamper the U.S. and China, companies have chosen to limit shipping or suspend orders
specifically in electronics products. For example, China altogether due to the increased shipping costs, further
imports 38% of data processing machinery and 29% of worsening the shipping situation.
telecommunication equipment from these countries, while
the U.S. relies on half of its semiconductor imports from the
aforementioned five countries.

A stock photo of the container yard in Port of
Ningbo-Zhoushan

Taiwan Machinery 2021 September