Logistics problems loom as Chinese production moves inland: APL

THE rapid growth in trade with China has created unprecedented complexity, costs and choke points in thousands of global supply chains, says Brian Lutt, president of APL Logistics.

Speaking at the first Transpacific Maritime Asia Conference in Shenzhen, Mr Lutt said: "Getting products to market from China quickly, reliably and cost-effectively already keeps logistics providers and their customers up at night."But the main production and consumption zones are still clustered in the east of the country. So the challenges we face today will be multiplied many times once China's vast hinterland is unlocked," he said.

Mr Lutt praised China for seeing that transport infrastructure is linked to its economic prosperity. He said China had been successful in developing container ports.

"From a container logistics perspective, additional road and rail must be matched by connectivity with ocean transportation and other value-added logistics services. Without this connectivity and integration, supply chains will falter."