New York University’s Stern School of Business recently released a study saying that globalization hasn’t reversed. With recent and current events such as COVID, the trade war between the US and China, the war in Russia and Ukraine, and the UK leaving the European Union, many thought it would.
Instead, according to the study, the past two decades have seen that the average distance covered by trade, people, and more has continued to increase. However, as near-shoring supply chains might become the norm, the future may see a shift to more regional trade patterns.
Since 2020, the trucking sector has dealt with some incredible ups and downs, in both volume and rates. But they’re cautiously optimistic that might recovery may be in sight. Cautiously because pulling out of the recent down-cycle will depend on improving volumes and a slowdown in capacity growth.
Things are looking good for Maersk and MSC—at least in terms of their container schedules.
In 2021, the news was all about how bad schedule reliability was industry-wide, with the three main alliances showing the worst results. But according to a new SeaIntel Global Liner Performance Report that covers over 60 liners, February reliability was up 7.7% to 60.2% from January and 26% year-on-year. With Maersk and MSC at 64.9% and 64.4% in schedule reliability, respectively.
Do ocean carriers know something the rest of us don’t?
Despite shippers abandoning air cargo and moving back to ocean freight—obviously translating into a drop in demand—ocean carriers are moving ahead with plans to enter the market. Maersk has announced plans to open a twice-weekly route between Chicago (RFD) and Hangzhou (HGH), plus South Carolina (GSP) and Shenyang (SHE). And CMA CGM has paired up with Air France-KLM to forge a broader distribution network.
The UK is officially part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CP-TPP), a free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
They believe the partnership will benefit importers and exporters with a provision of clearer rules and regulations, increased market access, and tariff reductions. Not to mention a reduction in customs duty.
As for forwarders, it will provide easier entry into these markets plus put them in a better position to offer improved, more streamlined, door-to-door services.