On August 19, CMA CGM announced the delivery of 1,000 twenty-foot containers sourced from Vietnam, marking its first procurement from the country. This development represents a strategic effort to diminish China’s near-total dominance in the container manufacturing sector, where estimates suggest that 85 to 95 percent of containers are produced. A recent ranking by Container Xchange, an equipment matching platform, revealed that four of the top five container manufacturers operate in China, highlighting the entrenched nature of Chinese dominance.
The leading manufacturer, CIMC (China International Marine Container Group), operates 11 factories capable of producing approximately two million containers annually. Close behind is Dong Fang International Container Group (DFIC), with a capacity of 1.6 million containers each year. The predominance of these Chinese companies has been scrutinized in reports, including one by Carl Bentzel, the former commissioner of the Federal Maritime Commission. Bentzel’s 2022 analysis examined the container manufacturing landscape, revealing the strategic control exerted by Chinese entities, akin to their grip on the production of large shoreside cranes crucial for port operations.
Bentzel noted that the pandemic triggered shipping surges that exposed vulnerabilities in the supply chain as carriers scrambled for available containers. He raised concerns about potential price manipulation and called for a closer examination of China’s involvement in container and chassis manufacturing. His report underscored that monopolistic control over critical components essential for international trade warrants serious consideration, particularly in light of ongoing supply chain disruptions.
In announcing the container delivery, CMA CGM framed this move within its broader strategy to expand operations in Southeast Asia. The containers were manufactured by Hoa Phat Group, identified as Vietnam’s largest container producer. The shipping company emphasized that these new containers would enhance its equipment availability, reduce turnaround times, and improve supply chain efficiency.
Vietnam is also striving to capitalize on new market opportunities by expanding its shipbuilding capacity and container manufacturing services. The country’s initiatives include developing its ports as key transshipment hubs, which could facilitate the creation of innovative supply chains across Southeast Asia and beyond.
Overall, CMA CGM’s sourcing of containers from Vietnam represents not just a tactical business decision but also a significant step in diversifying the global container manufacturing landscape, challenging China’s long-standing hegemony.
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