Southeast Asian container shipments to the U.S. and Europe are rising as much as 10 percent, as manufacturers move production from China because of lower costs, according to cargo-booking technology provider Inttra.
“We’re seeing supply chains being very agile,” the company’s Chief Executive Officer Ken Bloom said in an interview at the JOC TPM Asia Conference in Shenzhen, China today. “China is an increasingly expensive place.”
Vietnam, Malaysia and Thailand are among Southeast Asian countries to have benefited from trade shifts as they ramp up production of consumer goods and of components that are shipped to other countries for final assembly, Bloom said. Low-cost manufacturers have moved from China because the yuan has strengthened about 7 percent against the dollar in the past two years, according to data compiled by Bloomberg.
Still, exports from Asia have slowed as the Euro zone debt crisis damps trade to Europe, Bloom said. Asia-Europe volumes are “very sick,” while shipments to the U.S. are growing more slowly than last year, he said.
--Alexandra Ho. Editors: Neil Denslow, Garry Smith
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