US media said that at a time when the global shipping industry is beginning to emerge from its worst depression in nearly a decade, a move by China to save the earth has posed a cost impact on the industry.

According to a report on the Bloomberg website of the United States on June 27, Chinese manufacturers currently produce 90% of all containers used on ships that transport various manufactured goods and bulk commodities to all parts of the world. They are the drivers of global economic development. These companies are spraying containers with water-based paint ahead of China's environmental protection tax in January 2018. These coatings release less toxic gases than oil-based coatings.

According to the report, this is a noble move, but it is also an unexpected blow to the shipping industry. Zhang Songsheng, CEO of Shengshi Container Co., Ltd., the world's second-largest container manufacturer, said that as manufacturers replace factory machinery and equipment to use new coatings, about 70% of China's container capacity has been shut down, which has led to container prices. It has soared by as much as 69% compared with last year's low.

Park Moo-hyun (sound), an analyst at Hana Financial Investment, said: "This is not what shipping companies want when the shipping industry is just showing some vitality, but they do recognize the importance of the environment. They will have to adapt to these changes, even if it means paying higher costs."

Many years ago, scientists determined that the gases emitted by oil-based coatings used in ships and containers may cause greenhouse gas emissions and endanger the health of workers. Shipbuilding companies switched to environmentally friendly water-based coatings around 2008. Now, container manufacturers are doing their part to help limit greenhouse gas emissions.

Reported that the industry's switch to water-based coatings began in July 2016 in the southern province of Guangdong, when the China Container Industry Association implemented an agreement aimed at reducing volatile organic compound emissions. The parties to the agreement are China International Marine Containers (Group) Co., Ltd., Shengshi Container Co., Ltd., Xinhua Chang Group Co., Ltd. and China Shipping Group Investment Co., Ltd., covering 46 manufacturers under these four groups.

For paint manufacturers, this shift is an opportunity. According to the company's estimates, the use of water-based paint containers currently only about 3.5 percent of the total number of containers in the world.

Shengshi has six branches in China, and it has suspended operations at several of them to revamp production lines. Zhang Songsheng said that China International Shipping Containers (Group) Co., Ltd., Shengshi's biggest rival, is also adjusting production capacity in accordance with the agreement.

Adjusting the production line is not the only reason for the paint shortage. Water-based paints need time to dry. Typically for a 20 foot container, it takes about 20 hours to dry, while for conventional coatings it takes only 4 hours. Wengshi said that water-based coatings are more expensive, lower productivity and higher labor costs.

Shengshi said that containers using water-based coatings are about $180 to $200 more expensive than containers using solvent-based coatings, and companies have invested "a lot of money" to transform production lines. The company said that the unit price of the 20-foot container order it received last month was US $2200, while the price in September last year was a low, about US $1300.

"The sharp rise in (prices) can be attributed to all container manufacturers switching to more environmentally friendly and more expensive water-based paint systems," said Niresh Tiwari, an analyst at Drurri Financial Research Services, which works in New Delhi."

According to the report, higher costs are likely to tighten the container shipping industry. After the collapse of South Korea's Hanjin Shipping Company last year, this industry is beginning to see signs of recovery, and global trade volume is also on the rise. The restructuring of major routes has helped stabilize freight rates after the industry has been mired in overcapacity and discounted freight rates since the 2008 financial crisis.

"What adds to the industry's cost base will hurt weaker container lines than in the past and perhaps accelerate further consolidation in the industry," said Siwen Shen, a Shanghai-based partner at McKinsey Consulting. "In the longer term, the increased costs are likely to be passed on to customers."