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Tue, 20.05.2003
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pte20030520037 Commerce/Services, Computer/Telecommunications
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Limited freight capacity at Chinese airports
Notebook transport from Shanghai costs time

Taipeh (pte037/20.05.2003/15:31) - Taiwan's notebook producers, who have in part been forced to move their production to China due to SARS, are now complaining of limited freight capacity at Chinese airports.

With only one conveyor belt, the Shanghai-Pudong airport is already at the limit of its capacity. Most notebooks are produced in the region around Shanghai, as reported by Taiwanese IT service Digitimes http://www.digitimes.com . The waiting period for notebooks shipped from China is currently three days.

Digitimes reports that shipping notebooks from Taiwan would not be a problem if it weren't for the decision among notebook producers to outsource their production to southern China due to the SARS epidemic. In order to secure higher transport capacity, notebook producers have paid airports larger sums - exact figures are not available. Other notebook producers plan to take indirect routes over Nanjing (Jiangsu Province), Hong Kong or even the Philippines, making use of China's domestic airlines. Taiwan's notebook producers predict that about 80 per cent of notebooks - or about 4.4 to 4.8 million units - will be shipped from China in the fourth quarter.

The two largest notebook manufacturers, Quanta Computer and Compal Electronics, have moved their production to Shanghai and Kunshan (Jiansu Province). Although production costs in China are lower, transport possibilities from Taiwan are significantly better. Federal Express, the largest air cargo provider for Taiwanese notebooks, flies to Shanghai eleven times a week and to Taipeh 39 times a week.

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