China Cost Advantages Erode as U.S., Mexico Gain January 5, 2012Posted by tkcollier in Economy & Business.
Tags: Asia, China, Economy & Business, Mexico, Trade
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China, which is experiencing negative pressure as an exporter because of wage inflation, exchange-rate pressures and higher freight rates, could lose its cost advantage vis-à-vis U.S. production in four years if freight rates rise at 5 percent annually, according to the 2011 U.S. Manufacturing-Outsourcing Cost Index.
Since 2007, Mexico, some locations in Europe and locations in Asia other than China have gained a competitive advantage for offshore manufacturing. In addition to Mexico, emerging LCCs, including India, Vietnam, Russia and Romania, had lower landed cost for their exports to the U.S.
Garbage is USA’s Most Containerized Export June 14, 2011Posted by tkcollier in Economy & Business, Enviroment.
Tags: Economy & Business, Environment, Recycling, Trade
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America Chung Nam, the sister company and supplier of wastepaper to China’s largest containerboard manufacturer, was the largest American exporter of containerized goods by volume in 2010 for the 10th year in a row, according to the latest Journal of Commerce Top 100 Importers and Exporters annual rankings.
The California-based company shipped a total of 300,800 20-foot equivalent units from the U.S. in 2010. The volume was 16 percent ahead of the 259,300 TEUs America Chung Nam exported in 2009.
America Chung Nam, founded in 1990, sends recycled paper goods to Chinese paper mills, which are then converted into fiberboard, cardboard, and packaging. The company has their customer base in the U.S., Asia and Europe. In addition to containerboard, they also exports plastic recyclables.
Recycling paper, plastics and scrap metal is good not only for the environment but also for reducing the U.S. foreign trade deficit. Then, it comes back to us, as Wal-Mart remained the No. 1 importer of containerized ocean cargo, increasing its shipping volume into the United States 1.8 percent in 2010. The world’s largest retailer imported 696,000 20-foot equivalent units last year, up from 684,000 TEUs in 2009. The company also was No. 39 on the Top Exporters 2010 list with 28,000 TEUs shipped out of the U.S.