Will Waters | Tuesday, 25 June 2019
Escalating economic hostilities between the two countries is bad news for the transpacific container trade but should result in higher volumes of intermediate goods, notes Drewry
The escalating US-China trade war may be bad news for the transpacific container trade but should result in higher volumes of intermediate goods as supply chains become more fragmented with the diversion of manufacturing to other markets, according to analyst Drewry.
In an adapted extract from Drewry’s forthcoming Container Forecaster report, the company noted that when it comes to trade, any dispute between two countries, particularly when it is between the world’s two largest economies, has far wider ripple effects. Numerous countries and industries are involved at some stage of the supply chain to make sure the finished product ends up in a store in New York, even if customs only logs the last point of origin, Drewry...
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