Following an investigation into reduced availability of ocean containers, Carl Bentzel, Federal Maritime Commissioner, has issued a report denoting extreme reliance on China for containers and chassis used to transport ocean containers.  The report demonstrates the virtual monopoly by China that manufactures 95 percent of cargo containers and 86 percent of intermodal chassis.  The three principal manufacturers are effectively controlled by the Government of China and receive subsidies. 

This situation has inhibited competition and rendered the U.S. and other nations reliant on ocean transport to be beholden to China.  The report alleges that manufacturers of containers in China deliberately reduced production rates prior to the outbreak of COVID resulting in a doubling of the cost of a twenty-foot dry cargo unit from $1,800 in early 2020 to a current value of $3,500.

The Federal Maritime Commission Report disclosed manipulation of container availability to benefit export trade.

A report strongly recommends domestic production of containers and chassis rather than imposing sanctions.  The University of Maine and The Georgia Institute of Technology are currently working on the design of a ‘new generation’ container.  It will be superior to existing units that have remained unchanged since their commercial introduction in the 1960s by Sea-Land Shipping a U.S. company founded by Malcolm McLean.  The report also questions the desirability of providing incentives for domestic U.S. production, a strategy adopted by China. It is generally accepted that subsidies deter innovation and entrepreneurship.