is global shipping threatened by protectionism?

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  • IS GLOBAL SHIPPING THREATENED BY PROTECTIONISM?

  • JOIN THE CONVERSATION ON TWITTER

    @XENETA_AS

    https://twitter.com/xeneta_as

  • ABOUTXENETA

    At Xeneta we believe there is an untapped potential for everyone in the industry, to systematically learn from our individual and collective efforts. We hold true that "if you cannot measure it, you cannot improve it". Thats why we think actionable metrics is the key to continuously evolve for every business, and ultimately the entire industry. Rethinking global logistics is the vision of Xeneta.

    With international experience from the logistics industry, we have first-hand knowledge of the challenges related to high volatility and lack of transparency in the ocean freight market. By combining logistics background and information technology expertise, we found the solution

    WE ARE TRANSFORMING GLOBAL LOGISTICS

  • ARE YOU PAYING THE RIGHT CONTAINER

    FREIGHT RATES?

    DISCOVER SAVINGS POTENTIAL IN REAL

    TIME.

    CONTACT US.

    https://www.xeneta.com/xeneta-demos

  • WHILE PROTECTIONISM IN TRADE MAY BODE WELL FOR TRADE ITSELF, DOES THIS PROTECTIONISM AFFECT OR THREATEN GLOBAL SHIPPING?

  • WE ASKED OUR SOCIAL MEDIA COMMUNITY DO YOU BELIEVE

    GLOBAL SHIPPING IS THREATENED BY THE RISING PROTECTIONIST

    SENTIMENT?

  • HERE ARE THE RESULTS AND ANALYSIS OF PROTECTIONISM.

  • TAKING PART IN THE SURVEY, VIRGILL RATLIFF OF EXCELSIOR WORLDWIDE FREIGHT LOGISTICS AND HARIESH

    MANAADIAR OF SHIPPING AND FREIGHT RESOURCE DO NOT BELIEVE THAT

    PROTECTIONISM WILL BE A THREAT TO THE GLOBAL SHIPPING INDUSTRY

  • INDUSTRIAL ACTIVITY CLIMBING IN THE U.S. WITH HEAVY EMPHASIS ON EXPORTS. U.S. BUSINESS COMMUNITY WILL TEMPER

    PRESIDENT TRUMP'S CALL FOR IMPORT RESTRICTIONS.

    Mark Montague from DAT Solutions commented via Twitter

  • GUIDE TO OCEAN FREIGHT RATE TRANSPARENCY

    FREEWEBINAR

    https://cta-service-cms2.hubspot.com/ctas/v2/public/cs/c/?cta_guid=9239c3bf-c761-4187-a69d-20ab5a4c7023&placement_guid=9a1838f5-ca0d-406b-a0f0-9ac1d9b5ce63&portal_id=1816946&redirect_url=APefjpFEGbLyynxfk7PoobtJa3DTVCr0Kw0m-nQ8NfWM63ki059szIaQ-m9UKQ1J5jzQvy0uYOAqDK89A012dytkxFgvsjSfxIMTIU9QXer9LTgW1qk3LVn-n9EcnvgJp14J5Fdf-PaFaWqnLlaHIhMzLkUBPZRDDXndM_mt1nSGgJVeXhoVGprkwZ-I2grKlQln05-iorLC-ATIBHliURDzbaupjzh4R-rijkLH-soe_SX0xDUdcfnw0t1YyTXjrbBLanp0J3-xvPjnnLSv_ltrewzYacbfhAW0gDhJNkF1dqOZRlPdVxagUn2jW-mKQouj7954xU0MopznRtHnoNEUPKaec1hOLW-dGP5aA431lIKU2C9RJ9M&hsutk=5fd783f9eddecad8c011de8a9b45de1a&canon=https%3A%2F%2Fwww.xeneta.com%2Fblog%2Fglobal-shipping-threatened-protectionism&utm_referrer=https%3A%2F%2Fwww.xeneta.com%2Fblog&pageId=4649844844&__hstc=135874990.5fd783f9eddecad8c011de8a9b45de1a.1484121771299.1489082004953.1489481141062.67&__hssc=135874990.3.1489481141062&__hsfp=826699516

  • HOW DOES PROTECTIONISM WORK?

  • INCREASING IMPORT TARIFFS SO THE IMPORTED GOODS WILL NATURALLY BE PRICED HIGHER THAN LOCAL GOODS

  • INDUSTRIAL ACTIVITY CLIMBING IN THE U.S. WITH HEAVY EMPHASIS ON EXPORTS. U.S. BUSINESS COMMUNITY WILL TEMPER

    PRESIDENT TRUMP'S CALL FOR IMPORT RESTRICTIONS.

    Mark Montague from DAT Solutions commented via Twitter

    SUBSIDIZING LOCAL GOODS/SERVICES SO THE PRICES WILL BE CHEAPER THAN IMPORTED GOODS OR THE GOVERNMENT ENTITIES THAT RECEIVE THESE SUBSIDIES WILL STAY IN BUSINESS

  • SETTING QUOTAS FOR IMPORTS SO THAT ONLY A CERTAIN QUANTITY CAN BE IMPORTED

  • LOWERING CURRENCY VALUE SO THAT IT MAKES A RATE OF EXCHANGE FAVORABLE FOR EXPORTERS BUT UNFAVORABLE FOR IMPORTERS

  • THE ANALYSIS | PROTECTIONISM AND GLOBAL

    SHIPPING CORRELATION

  • IF ONE ANALYZES THE CORRELATION BETWEEN PROTECTIONISM AND

    GLOBAL SHIPPING, ONE CAN SEE THE REASON WHY THE MAJORITY VOTED TO SAY THAT PROTECTIONISM WONT

    AFFECT GLOBAL SHIPPING.

  • MERCHANT MARINE ACT OF 1920 OF USA COMMONLY KNOWN AS THE

    JONES ACT, A FEDERAL LEGISLATION, IMPOSES FOUR PRIMARY

    REQUIREMENTS ON VESSELS CARRYING GOODS BETWEEN U.S.

    PORTS.

  • OWNED BY U.S. COMPANIES THAT ARE CONTROLLED BY U.S. CITIZENS WITH AT LEAST 75 PERCENT U.S. PERCENT OWNERSHIP;

    AT LEAST 75 PERCENT CREWED BY U.S. CITIZENS;

    BUILT (OR REBUILT) IN THE UNITED STATES; AND

    REGISTERED IN THE UNITED STATES.

  • RELATEDREADING:

    HOW TO GAIN TRANSPARENCY INTO OCEAN FREIGHT RATES3 QUESTIONS TO ASK WHEN NEGOTIATING FREIGHT CONTRACTS

    CLICK TOREAD

  • LEARN HOW XENETA CAN HELPYOU GET INSIGHT INTO YOUR

    GLOBAL OCEAN FREIGHT PRICES.

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    https://www.xeneta.com/xeneta-demos

  • EFFECTS OF PROTECTIONISM

  • GLOBAL TRADE FLUCTUATES DUE TO A VARIETY OF REASONS

    SUCH AS OVERCAPACITY, INCONSISTENT

    FREIGHT RATES AND OIL PRICES. THERE IS

    NO OFFICIAL EVIDENCE WHICH SUGGESTS

    THAT THE COUNTRIES WITH THE

    PROTECTIONIST POLICIES HAVE LOST

    THEIR SHARE OF GLOBAL SHIPPING.

  • IN AN UNDATED ARTICLE, WILLIAM TURLEY WRITES

    THAT:

  • IN 2011 ALONE, DOMESTIC SHIPPING GOODS AND SERVICES CONTRIBUTED $33.6 BILLION IN VALUE-ADDED TAXES, $21.7 BILLION IN LABOR COMPENSATION, AND AN ADDITIONAL $9.9 BILLION IN TAX PAYMENTS TO STATE AND LOCAL GOVERNMENTS.

  • AS PER THIS REPORT, THESE COSTS ARE ULTIMATELY INCORPORATED SOMEWHERE INTO THE COST OF THE GOODS BEING SHIPPED WHICH COULD END UP HARMING SMALLER ECONOMIES.

    THOSE IN FAVOR, OF COURSE, SUGGEST THE JONES ACT HAS GUARANTEED U.S. SHIPPERS A MONOPOLY IN THE TRADE SPACE, THEREBY HELPING THE DOMESTIC COMPANIES HAVE LITTLE TO NO COMPETITION.

    THERE ARE SEVERAL EXAMPLES OF SUCH PROTECTIONISM WHICH, WHILE PROVIDING SOME TEMPORARY RELIEF TO THE RECIPIENTS, WILL EVENTUALLY RESULT IN ALLOWING THE OVERCAPACITY OF TONNAGE TO CONTINUE WHICH MAY KEEP RATES FROM RISING FURTHER AND THIS IS SOMETHING THAT WILL NOT END WELL FOR EVERYONE CONCERNED.