05 January 2018

Chinese restrictions on imported waste increase the West – East imbalance

Containers ScrapNew Chinese restrictions on imported waste, introduced since 1 January 2018, are set to have significant implications for the international freight transport, logistics and supply chain sectors. Waste and scrap are the biggest export products transported from the EU and USA to China. The restrictions will increase the imbalance between the West and the East. 4FOLD Foldable Containers provide the solution for this increasing imbalance, as it allows four empty containers to be repositioned at the burden of one. 

Shipping lines make the majority of their money on their East-West trades (front-haul stretch). This is needed as a compensation for the repositioning of their ships and containers. On the back-haul stretch, these ships are mainly filled with low-value cargo like waste and scrap, and empty containers. The restriction from the Chinese Government will significantly increase the number of empty containers that need to be repositioned to China. Shipping lines will lose revenue on their back-haul trades to China, cost reductions are the solution to compensate this loss. If you want to know more about 4FOLD Foldable Containers as the solution to reduce costs and create efficiency for this increasing imbalance problem please contact us.

If you want to know more about the new Chinese Restrictions please find the article here.