China’S Exports Perch On Uncertain Truck System

[interestrateripoff]

http://www.nytimes.com/2011/04/29/business/global/29truckers.html?_r=1&ref=business

For years, China’s export juggernaut has been fed by highly efficient factories, low-cost labor and a fleet of container ships capable of transporting huge volumes of toys, textiles, electronics and other goods to every corner of the world.

But there is a surprisingly weak link in the Made in China chain.

Moving those goods from the factory floor to one of China’s enormous seaports — often a drive of less than two hours — typically means relying on an independent trucking company. And as vital as trucking is to China’s mighty export machine, the government seems to be ignoring the drawbacks of what analysts say is an increasingly disorganized, inefficient and even costly way to transport factory goods to seaports.

Trucking’s tenuous status has been underscored by recent protests and demonstrations by drivers. Last week, in an unusually bold display of public anger, 2,000 truckers went on strike in Shanghai to complain about the rising cost of fuel and unfair government transportation fees. Some protestors hurled rocks, tried to overturn police cars and smashed the windshields of truck drivers who refused to join the strike.

The Shanghai municipal government eventually ended the three-day strike by arresting protestors and threatening strike organizers, while also promising to lower some fees that trucking companies must pay to use the roads and seaport.

But the challenges that trucking pose to China’s $1.5 trillion a year in exports are still in place — and could become even greater, now that huge factories have begun relocating to poorer, inland regions to save on labor costs.

Are they moving the factories so the journey times will be longer? What's China's infrastructure like away from the main cities, can it cope with moving factories away from the main ports? The further away they move the factories does that mean more fees the truckers have to pay to use the road system?

[ken_ichikawa]

Are they moving the factories so the journey times will be longer? What's China's infrastructure like away from the main cities, can it cope with moving factories away from the main ports? The further away they move the factories does that mean more fees the truckers have to pay to use the road system?

Yup much of the non coastal areas of China are still undeveloped. The thing is you have to remember China has been spending masses of money building up its infrastructure in an attempt to beat Benanke. Road building has been absolutely immense along with upgrades and building more railway lines. Offsetting the higher transport costs you get cheaper labour.

[South Lorne]

Yup much of the non coastal areas of China are still undeveloped. The thing is you have to remember China has been spending masses of money building up its infrastructure in an attempt to beat Benanke. Road building has been absolutely immense along with upgrades and building more railway lines. Offsetting the higher transport costs you get cheaper labour.

...outsourcing inwardly...?....

[Ruffneck]

I bet most of the roads in inland China are still unsealed , the transport Cos will want higher rates for using more fuel and going through more tyres and suspension springs.Chinas days as the factory of the world are thankfully coming to an end , this is another nail in the coffin.

[Realistbear]

http://www.nytimes.com/2011/04/29/business/global/29truckers.html?_r=1&ref=business

Are they moving the factories so the journey times will be longer? What's China's infrastructure like away from the main cities, can it cope with moving factories away from the main ports? The further away they move the factories does that mean more fees the truckers have to pay to use the road system?

Polution levels are so severe along the coastal cities that they have to start polluting inland to avoid having workers drop dead from asphixiation. Might not be a bad thing is we and the US stopped lining their pockets as much as we can always buy our tattersall from the Eurozone.