As China's economy explodes, it should come as no surprise that its supporting logistics infrastructure is experiencing something of a boom as well.
Take the Port of Shanghai, for example. "In 1983, there was one container off-load lift," says Dr. C. John Langley of Georgia Tech. At that time, he explains, it was normal practice to break down containers right at the dock because the notion of moving full containers to an inland destination was entirely foreign to the Chinese. Things are very different today, he says. "With the construction that is either planned or already under way, the Port of Shanghai alone will soon have more on- and off-load equipment than all U.S. ports combined."
That's good news for companies exporting to and importing from the Pac Rim.More capacity means more competition. Not only will China's trade partners find it much easier to move goods to and from China, says Langley, but the competition will likely put downward pressure on rates.