July 29, 2024 | Page 38

Express service for oversize cargo
SPECIAL ADVERTISING SECTION
ASIA TRADE AND LOGISTICS
2022 , US ports and logistics companies face other challenges . A worsening shortage of truck drivers , persistent troubles in the railroad industry and infrastructure constraints have meant that congestion and delays remain problematic at many ports .
Yet such interruptions have eased from recent peaks . Average delays at East Coast ports were 6.8 days in June , while those at West and Gulf coast ports were 5.4 and 3.2 days respectively .
Price increases
Shipping rates from Asia have surged over the past 12 months . North Asia to West Coast rates were $ 10,133 on July 3 , up 350 % year on year , according to data from Platts , a sister company of the Journal of Commerce within S & P Global . Rates to the East Coast were $ 8,133 , representing a 551 % increase over the same period ; rates from China to US ports have risen by a similar magnitude . The price increases partly reflect increasing US imports from Asia . Monthly imports have averaged $ 105.7 billion this year , according to Journal of Commerce calculations based on US government data . Extrapolated to 12 months , such imports would total $ 1.27 trillion and be the second-highest annual total on record — below the 2022 peak of $ 1.41 trillion .
Although shipping costs to the US from Asia have surged , rates for cargo heading in the opposite direction have been nearflat over the past 12 months , supporting US exporters .
US monthly exports to Asia averaged $ 49.1 billion from January to May and are on course to reach approximately $ 589 billion this year . That would eclipse the 2023 total and come very close to 2022 ’ s peak of $ 601 billion , US Census data shows .
Global trade expansion
Inbound and outbound trade between Asia and North America will remain of fundamental importance to the world economy .
In its April Global Trade Outlook and Statistics report , the World Trade Organization ( WTO ) forecasts global merchandise trade will expand 2.6 % in 2024 and 3.3 % in 2025 , noting “ Asia will make a bigger contribution to trade volume growth ” over this period .
More broadly , the organization predicts Asia will account for roughly half of the 2.9 % increase in global exports this year .
“ Exports from Asia surged during the COVID-19 pandemic but have since plateaued at a high level ,” the WTO reported , noting that Asian exports at the end of 2023 had risen nearly 17 % from 2019 .
Conversely , the value of global trade in goods rose 1 % in the first quarter of 2024 versus the fourth quarter of 2023 , according to a July report by UN Trade and Development ( UNCTAD ). The report attributes the increase to “ positive trade dynamics for the United States and developing countries , particularly large Asian developing economies .”
US exports grew 3 % quarter on quarter , while China ’ s and India ’ s expanded 9 % and 7 %, respectively , over the same period . UNCTAD forecasts global goods trade in the first half of 2024 will be $ 250 billion higher than in the second half of last year .
Overall , world GDP should expand 3 % this year “ with the short-term trade outlook being cautiously optimistic ,” and total 2024 trade — including services — forecasted to reach nearly $ 32 trillion , the report noted .
“ The possibility of interest rate cuts in the United States later in the year and the consequently weaker United States dollar

Express service for oversize cargo

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Contact us today for your oversize shipment needs ! New York | 772.828.3192 | ast @ aishipping . com Chicago | 30.848.0004 | midwest @ aishipping . com San Francisco | 415.461.9714 | west @ aishipping . com
38 Journal of Commerce | July 29 , 2024 www . joc . com