US economic outlook - is the glass half full or half empty?

WHEN looking at the US economy one can either take a glass half full or glass half empty approach. There is no truly clear picture at this stage based on the data available.
On the one hand we see that US unemployment continues to decrease, which is great news. The latest figures indicate that the unemployment rate is now 7.6 per cent, down from 7.7 per cent in February and 7.9 per cent in January.
For the shipping industry the obvious consequence of a falling unemployment rate is the increase in a population's disposable income, which theoretically translates into increased consumer spending and ultimately the need for retailers to replenish stocks. And that requires shipping… >More

The 'new normal' in a post-financial crisis world

THE world changed with China's accession into the World Trade Organisation in December, 2001. Suddenly trade lanes were awash with low-cost made-in-China merchandise as global trade volumes began to soar.
Shipping lines and airfreight carriers alike enjoyed healthy profits thanks to the strong growth in trade for the better part of the following decade. But the world changed again in 2009 as the global economy was hit with the worst financial crisis in almost a century.
Today there is growing talk of the need to adjust expectations to what is referred to as the "new normal" in the aftermath of the global financial crisis... >More

Keeping an eye on supply in 2013

GLOBAL trade volumes are projected to grow by 5.8 per cent this year to a total of 165 million TEU against an increase in total container shipping capacity of 6.3 per cent, according to the latest Clarkson Container Intelligence Monthly.
In terms of the fully cellular fleet, BIMCO has forecast an increase in supply this year of 7.4 per cent, or roughly 1.5 million TEU.
Clearly, supply is going to exceed demand in 2013 by a significant amount. But there are some extenuating circumstances that might help to offset the stark mismatch... >More

Where to now for China as low-value goods manufacturing
reaches plateau

FOR the past twenty years China has been the factory of the world, providing consumers in Europe and North America, in particular, with access to a wide array of low-cost goods.
Additionally, this resulted in a massive increase in world trade volumes and it also had a major impact on China as well. It has made the country what it is today, one of the fastest growing economies in the world.
It is today the world's second largest economy. At the turn of the century it was just the sixth largest, trailing the United States, Japan, Germany, the United Kingdom and France, according to CNN Money... >More

Global shipper highlights the need for carriers to focus on
service and not price

AT a time when the shipping industry is besieged with stories about declining rates and increased tonnage, the Shipping Gazette interviewed a global logistics manager from a major global shipper - who is willing to pay more to ship goods with carriers who provide a more reliable service.
The company's global logistics head told the Shipping Gazette there was a simple reason for this: it saves the company money over the long term.
This publication has long advocated that carriers are too preoccupied with price. In a bid to secure volumes the carriers' response has all-too-often been to reduce rates, even sometimes to a point which threatens the viability of the business itself..... >More