A move by China to save the planet has delivered a price shock to the global shipping industry just as it was starting to emerge from its worst slump in almost a decade.
China manufacturers make 90 percent of all containers used on ships to carry all manner of finished products and commodities around the world. They're the workhorses of the global economy. As part of their pledge to cut emissions by 70 percent by the end of this year, these companies are coating containers with water-borne paints that release less toxic fumes than oil-based varieties before China starts levying a green tax in January 2018.
It's a noble effort—yet one that's delivered an unintended blow to the shipping industry. About 70 percent of container production capacity in China has been shut down as manufacturers retool their factories to allow for the usage of the new paints, sending prices soaring as much as 69 percent from last year's lows, said Teo Siong Seng, chief executive officer at Singamas Container Holdings Ltd., the world's No. 2 maker.
It's not just the container manufacturers shutting down to retool, but that the new water-based paint takes 20 hours to dry vs. 4 hours for conventional paints.
(Score: 2) by bob_super on Wednesday June 28 2017, @05:33PM
In summary, the Chinese container makers will be exposed to less fumes, and anyone licking container in dockyards may get more toxins...
Until those containers get repurposed for housing units (for trendy and/or poor humans, or for fish after a storm), it sounds like a win for everyone.