- The largest CMA CGM 16,000 Teu container ship arrived at Jakarta airport container terminal.
- The development will facilitate increased trade volumes between Indonesia and her second largest export market.
- Many companies over the next five years will also shift their production from China to other countries due to the ongoing geopolitical situation.
With Southeast Asia increasingly forecast to take a greater slice of manufacturing away from China, liner trades are upgrading their service offerings, reported by Splash247.
Big arrival
The largest container ship to ever call in Indonesia arrived in Jakarta today.
The 16,000 teu CMA CGM Alexander Von Humboldt dropped anchor at Jakarta International Container Terminal (JICT) today, marking the first of three CMA CGM’s 16,000 teu series to be called JICT.
The ship is deployed on the CMA CGM Columbus JAX (JAX) service which directly connects Jakarta and the US.
Increasing trade volumes
“This development is designed to facilitate increased trade volumes between Indonesia and her second largest export market, which is forecasting a double-digit export growth by the end of 2022,” CMA CGM stated in a release today.
Geopolitical situations
Similar new containership size records are being registered this year at other up and coming Southeast Asian manufacturing powerhouses such as Vietnam.
Many are watching today’s changing geopolitical situation with concern, suggesting the glory years of so-called Chimerica are coming to a close.
Manufacturing capacity
According to World Bank figures, China represented just 9.4% of global manufacturing capacity in 2005 with the US and Japan being number one and two at 21.8% and 13.5% respectively.
By 2020, China had propelled itself to the top spot with 28.5%, while the West’s share declined from 70.5% to 53.2% – including Japan and South Korea, a 17-point decline almost exactly matching China’s 19-point gain.
Peak dominance
However, this dominance looks to have peaked this year with Covid, a more strident China.
And tensions along the Taiwan Strait are all playing their part in many companies looking for alternative places to manufacture their goods lately.
“The developments we have seen especially in 2022 is leading to a situation where companies over the next five years to some degree will be shifting production out of China.”
“Which would most likely be to other locations across Asia,” Lars Jensen, CEO of liner consultancy Vespucci Maritime, told sister title Splash Extra earlier this year.
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Source: Splash247
