The State of Transpacific Trade€¦ · Trade Policy Actions & Agreements •US-ChinaPhase OneTrade...
Transcript of The State of Transpacific Trade€¦ · Trade Policy Actions & Agreements •US-ChinaPhase OneTrade...
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The State of Transpacific Trade
Ms. Tong ZhuChief Commercial & Strategy Officer
Date of Meeting: March 5, 2020Item No.: 2B
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Times of Uncertainty: Stormy Seas Ahead
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Trade Policy
Actions & Agreements• US-China Phase One Trade Agreement• Korea Free Trade Agreement• Japan Free Trade Agreement
Challenges• Unpredictable, punitive applications create uncertainty• Tariffs continue to erode competitiveness in global markets
Opportunities• China – Refrigerated commodities (pork, beef, chicken)• Japan – Agricultural products (proteins, grains, produce)• Korea – Automobiles
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Tariff Impacts on Asian Imports
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Major Ports Cargo VolumesYOY % Change Feb 2018-Jan 2019 & Feb 2019-Jan 2020
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Coronavirus—Impacts on the Supply Chain
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Manufacturer(Exporter)
Drayage Provider
Railroad
Port of Lading (MTO)
Port of Discharge
(MTO)
Shipping Lines
Drayage Provider
Railroad
Manufacturer
Retailer
Coronavirus—Impacts on the Supply Chain
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Manufacturer(Exporter)
Drayage Provider
Railroad
Port of Lading (MTO)
Port of Discharge
(MTO)
Shipping Lines
Drayage Provider
Railroad
Manufacturer
Retailer
Coronavirus—Impacts on the Supply Chain
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Manufacturer(Exporter)
Drayage Provider
Railroad
Port of Lading (MTO)
Port of Discharge
(MTO)
Shipping Lines
Drayage Provider
Railroad
Manufacturer
Retailer
Coronavirus—Impacts on the Supply Chain
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Manufacturer(Exporter)
Drayage Provider
Railroad
Port of Lading (MTO)
Port of Discharge
(MTO)
Shipping Lines
Drayage Provider
Railroad
Manufacturer
Retailer
Coronavirus—Impacts on the Supply Chain
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Manufacturer(Exporter)
Drayage Provider
Railroad
Port of Lading (MTO)
Port of Discharge
(MTO)
Shipping Lines
Drayage Provider
Railroad
Manufacturer
Retailer
Coronavirus—Impacts on the Supply Chain
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Manufacturer(Exporter)
Drayage Provider
Railroad
Port of Lading (MTO)
Port of Discharge
(MTO)
Shipping Lines
Drayage Provider
Railroad
Manufacturer
Retailer
Coronavirus—Impacts on the Supply Chain
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Industry Dynamics
Carriers Shippers
Port Competition
Railroads
Workforce/Labor
Warehouses
Distribution Centers
Transloaders
US Coast Guard
Pilots
Industrial/Commercial Real Estate
US Customs & Border Protection
Drayage Providers
NVOsFreight
Forwarders
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Industry Dynamics—Carriers
Carriers
Port Competition
Bigger ships/alliances• Shifting alliances• Larger ships, fewer callsIMO 2020• Industry-wide financial impact
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Industry Dynamics—Shippers
Shippers
Port Competition
• Ecommerce reshaping supply chains and distribution networks
• Trade policy influences sourcing decisions
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Industry Dynamics—Port Competition
Port Competition
Panama/Suez Canals• Provide more routing options
for all-water servicesEast Coast/Gulf Coast Ports• Expanding capacity and
handling capabilities to capture market share
Canadian Ports• Cost differential
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Impacts on the NWSA Gateway
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