As mainland China and Taiwan strengthen economic ties and facilitate direct transportation, Hong Kong is no longer a must-stop on the shipping route across the Taiwan Strait.
Containers of plastic resins are arriving in Shantou city, in East Guangdong province, this month, lowering raw material cost by 200-300 yuan per metric ton, local media reported. A local distributor has reached an agreement with Formosa, the Shantou Evening News said, to import resin from Taiwan with at least one ship every week.Shantou is about 210 nautical miles from Taiwan's Kaohsiung port.Shantou houses more than 5,000 plastic processors and consumes 3 million metric tons of plastic resins every year. These companies have been sourcing raw materials from other locations such as Hong Kong, Guangzhou and Ningbo, which adds to both transportation cost and lead time.The new shipping route is expected to increase the competitiveness of local plastic processors and help establish Shantou as a regional resin distribution center.