What has Changed in the Global Economy
- Global logistics industry impacted in 2019 by stagnate global economy, trade disputes, geopolitical uncertainties and environmental regulations.
- COVID-19 flipped the growth switch in every area of global economy, causing rapid deterioration in trade and investment flows as well as taking a toll on maritime segments from oil tankers to container lines. IMF projects a 5% global economy decline in 2020 and difficult to accurately project future COVID-19 trajectory
- Manufacturers switch from large production sites in single location (China) to numerous smaller facilities by building regional supply chains/leaning on technology—seek more balance between profitability and risk reduction
- Ports have numerous safeguards/strong financial cushion that partially mitigate ripple of Coronavirus pandemic; pace of container port expansion contracts and anticipate delays in delivery of planned projects and equipment orders; continued investment in automation
- Divergent growth patterns among global terminal operators