“Made in China” Products Suffer Logistics Problems

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  • Chinese home appliance company Hisense has big plans to sell more goods overseas, but it said global shipping congestion has multiplied costs and caused delays.
  • It’s not been easy, generally, for Chinese multinationals. Out of about 3,400 Chinese companies that operate internationally, only about 200 make more than $1 billion in sales overseas, said James Root, partner at Bain.
  • However, Alibaba’s international e-commerce platform AliExpress claims it hasn’t seen delays or costs rise for cross-border selling, thanks to air cargo charters.

BEIJING — Chinese companies wanting to go global are running into shipping problems.

Access to cheap manufacturing at home gave Chinese businesses an advantage overseas. But it’s turning into a disadvantage now, as the pandemic and trade tensions disrupt international supply channels.

Many goods can’t be shipped out, said Fang Xueyu, vice president of international marketing and general manager for Asia-Pacific at Chinese home appliance company Hisense.

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The cost of shipping containers has climbed five-fold from about $3,000 to as much as $15,000 each, while it takes about a week longer for them to get to Europe, she said in a Mandarin-language interview last month.


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