The face of global trade is changing. We’re seeing lower container shipments from China to the rest of the world as political tensions between China and major economies rise.
At the recent Capital Link Singapore Maritime Forum, Jeremy Nixon, CEO of Ocean Network Express, revealed that the share of container boxes from China has fallen by about 10% over the past year. The US economy has responded by establishing stronger ties with other trade partners such as Europe. And according to Nixon, this is a trend that will continue to take shape.
“We are seeing a de-leveraging of trade from China. Many companies are looking to reduce down the amount of imports they have got coming from China.”
Jeremy Nixon, CEO, Ocean Network Express
The US and China have become less independent over the last 12 months, primarily driven by the global economic slowdown. The container industry has been acutely affected by this, as the boom created by the pandemic has now started to reverse. Nixon noted that the China decoupling is currently being worsened by geopolitics.
Europe is benefitting from this change in circumstances. The US has been importing more from Europe. In addition, shopping flows from the Mediterranean, India and Southeast Asia into the U.S. have also seen a boost.