Logistics Today: Latest Trends and News

1. Shortage of Containers in China

One of the reasons for the largest logistics crisis on a global scale, which erupted during the pandemic, was the lack of empty containers for cargo transportation by sea. At one of the main exporters in the world — China — there was an acute shortage of containers due to the prevalence of exports over imports — the containers were taken away but not returned.

The Chinese authorities then took measures to increase the production of containers — in a few months, their production increased from 200 thousand to 500 thousand TEU, that is, 2.5 times. The government also organized reverse logistics. With the help of the state-owned shipping company COSCO, 13,469 empty containers were returned to China. This made it possible to reduce the severity of the problem. In addition, a large-scale digital transformation of all Chinese ports was carried out to improve the "cycle" of containers. There are 10 automated container terminals operating in China, and seven more are under construction. According to these indicators, China ranks first in the world. As a result of all these measures, according to official statistics, China has a constant supply of empty containers — 400 thousand TEU.

However, the shortage of containers is only one of the factors affecting the slowdown in cargo transportation. Long queues for unloading at international ports, as well as the zero-tolerance regime introduced by China in relation to the COVID-19 coronavirus, remain a significant problem.

 

Kyrgyzstan connects only with Uzbekistan and Kazakhstan through the railroad. Lines from both countries end in dead ends in Kyrgyzstan. Since gaining independence, the Kyrgyz authorities have been trying to implement the China-Kyrgyzstan-Uzbekistan railway project. It was said that China would finance the construction and that Russia would also join the discussions.

At the SCO summit in Dushanbe on September 17, President Sadyr Japarov urged partners to bring the project to completion. It is planned that this railway will connect not only three countries but also Europe with Asia as a whole. The line from China will go through Kyrgyzstan and Uzbekistan, then it will continue to Turkmenistan, Turkey, Europe, Iran, and the countries of the Middle East.