Conflict Between Auto Export Growth and Shipping Capacity

China AutoMotive News
Zhang Xiaoyu, vice-chairman of China Machinery Industry Federation (CMIF) said during a conference that the number of China's vehicle exports has increased sharply, but many of these cars lay in transit at shipping ports because shipping companies simply do not have enough cargo ships to transport them. In 2006, this problem became more evident as increasing numbers of exported vehicles languished at ports waiting to be shipped on one of the limited number of cargo ships. To solve this problem, 17 auto enterprises and a Chinese shipping company signed a long-term cooperation agreement in August 2006 in hopes of rectifying this problem… According to the interviews, our correspondents discovered that domestic shipping ability will unlikely experience any large increases in 2007 and will still hold back any substantial increases in terms of auto exports. The conflict between auto export growth and a shortage of shipping capacity is expected to become more prominent this year.
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