There are rough waters ahead for shippers dealing with the tariff uncertainties. The prospect of tariff hikes is incentivizing companies to lock in better shipping prices now. But many retailers are competing just to find space for their goods on an ocean carrier, and the shipment surge has resulted in massive congestion at ports and warehouses.
On November 5, U.S. sanctions went into effect that target Iran’s energy, shipping, and banking sectors, including vessels and banks called out by name. Ahead of the November deadline, Iranian oil tankers moving supplies offshore went “dark” in unprecedented numbers, trying to cloak their movements.
Jayme Smaldone noticed that knockoffs of his Mighty Mug were selling on e-Bay for very cheap and included free shipping. But for his company, the cost was about $6.30 to ship the same (original) mug from their New Jersey warehouse to a U.S. location, even one across the street. How could that be?
DHL created a barometer to predict where storms lie ahead for global trade.
Polar caps in the Arctic are receding, creating access to new trade routes for parts of the year. The routes are valuable short cuts for global trade but the waterways are precarious to navigate with unpredictable weather, the need for specialized icebreaking ships, and the necessity to operate at slower speeds, all of which make the routes less commercially reliable and partially offset the savings in time and fuel. So why are Russia and China racing other major powers to gain control of these waterways?
Around one-third of global shipping and about 21 percent of global trade moves through it the South China Sea. The Strait of Malacca, which connects the South China Sea and the Pacific Ocean with the Indian Ocean, is the shortest and most economical passageway connecting these important bodies of water. Any long-term uncertainty around commercial use of the Strait of Malacca could create a ripple effect throughout existing global supply chains.
More than half of the world’s cut flowers still pass through auction houses in The Netherlands before reaching your local floral shop or grocery. That’s starting to change. Digital trade and lower transportation costs are helping developing countries like Colombia, Kenya, Ecuador and Ethiopia sell directly to buyers and blossom in global flower trade.
TPP is significant because it constitutes the largest regional trade agreement ever implemented outside of the WTO. TPP was negotiated among 12 countries on both sides of the Pacific. Those countries together generate roughly 40% of global economic output (GDP).
Members of the World Trade Organization (WTO) negotiated the 2014 Trade Facilitation Agreement (TFA) to expedite “the movement, release and clearance of goods, including goods in transit.”