CSCMP's Supply Chain Quarterly
December 17, 2017
Supply Chain Executive Insight E-Newsletter
Each week the Supply Chain Executive Insight e-newsletter will include brief articles about developments that are often overlooked by other supply chain publications. We will present you with summaries of the latest research as well as new ideas on how to make your supply chain operations more effective. And we'll offer commentary that sheds light on what's happening in supply chains today.
Sign up now!

Most Read Articles

News from our sister publication
DC Velocity
Forward Thinking

Global trade growth dips in second quarter

Comment

The global impact of the earthquake in Japan was seen across manufacturing industries worldwide in the second quarter of 2011. The cutoff of critical Japanese-made components used in the electronics, automotive, and ship-building sectors resulted in a 1-percent reduction in global trade on a quarter-over-quarter basis. Import volumes dropped by 2 percent to 3 percent in countries like the United States, United Kingdom, Canada, France, and Australia.

At the same time that U.S. auto production slowed due to a shortage of Japanese-supplied components, the economy was also facing rising commodity prices. These factors combined to reduce U.S. foreign market growth and similarly affected the majority of the chief economies. In the Eurozone, smaller nations continued to struggle with high unemployment and huge external debt while larger economies showed signs of inflation.

Article Figures
[Figure 1] CapGemini Consulting Global Trade Flow Index
[Figure 1] CapGemini Consulting Global Trade Flow Index Enlarge this image
[Figure 2] Container throughput vs. growth in trade
[Figure 2] Container throughput vs. growth in trade Enlarge this image

China's export-oriented economy was one of the few that saw foreign market trade growth in Q2. Still, a drop in overall trade-volume growth caused China to slip in the Global Trade Flow Index (Figure 1). India's Q2 outlook was positive due to quarter-over-quarter increases in its trade volume (2 percent) and gross domestic product (3.36 percent).

Global container throughput increased in the second quarter, largely driven by container flows through the Hong Kong and Los Angeles ports (Figure 2). Container throughput should continue to increase in Q3 with the anticipated rebound in world trade driven by a rise in Japanese imports. Further contraction in Japan's industrial production and domestic consumption, however, would slow that growth and impact global trade.

Looking ahead, ongoing U.S. fiscal imbalances risk creating financial market instability worldwide. Additionally, a spike in crude oil prices resulting from an escalation of violence in the Middle East and North Africa could also adversely impact a recovery in global economic activity.

For more about Capgemini Consulting's trade information services, contact Dan Albright, Vice President or Bryan Garcia, Managing Consultant.

Join the Discussion

After you comment, click Post. If you're not already logged in, you will be asked to log in or register.


Want more articles like this? Sign up for a free subscription to Supply Chain Executive Insight, a monthly e-newsletter that provides insights and commentary on supply chain trends and developments. Click here to subscribe.

We Want to Hear From You! We invite you to share your thoughts and opinions about this article by sending an e-mail to ?Subject=Letter to the Editor: Quarter 2011: Global trade growth dips in second quarter"> . We will publish selected readers' comments in future issues of CSCMP's Supply Chain Quarterly. Correspondence may be edited for clarity or for length.

Want more articles like this? Subscribe to CSCMP's Supply Chain Quarterly.