Page 9 - STAT Trade Times Novemmber 2024 Magazine for Website

The role of upcoming US
elections in trade
According to an article published by
Ernst & Young, particularly in the section
on trade and supply chains, the article
mentions that the Trump and Biden-
Harris administrations have been skepti-
cal of free trade and have emphasised
protecting US manufacturing and supply
chains. However, their views on specific
methods and approaches vary greatly. If
elected, Harris would likely maintain or
increase the Biden administration’s trade
priorities, including a focus on climate
and worker protections.
These trade policies have catalysed a
historic shift in global trade patterns. In a
landmark development, 2023 marked the
first time when in over two decades that
Mexico surpassed China as the largest
exporter of goods to the US. Mexican
exports to the US totaled $475 billion in
2023, which is a 4.6% increase from the
previous year, according to a data.
This shift occurs amid ongoing US-Chi-
na trade tensions, efforts to bring imports
closer to home, and the rapid expansion
of Mexico’s manufacturing sector. Add-
ing to this trend, Chinese companies are
increasingly using Mexico as a gateway to
the US to circumvent American tariffs.
As the US election approaches, these
According to Dimerco's September “It is extremely beneficial that we are trade dynamics will likely remain central
report, Global air traffic is experienc- present in every corner of the world, so to the country’s economic and political
ing significant growth in the US, fueled in case of a disruption in any corridor, discourse, shaping policy directions in the
by the ongoing e-commerce boom we have alternatives to serve customers years to come.
and constraints in ocean shipping. "E- through other hubs.
commerce demand has surged to levels In the case of the Red Sea disruption, Growing importance of
10 times higher than pre-Covid with air logistics and sea-air logistics can help perishables in US air cargo
high-value goods such as technology, mitigate the impact to our custom- According to a report published by the
pharmaceuticals and perishables driving ers’ supply chains. Sea-Air logistics has Global Cold Chain Alliance, nearly 70% of
air freight growth.” experienced considerable growth as all goods shipped via air freight between
customers look for sustainable and Latin America and North America are
Disruptions creating more cost-efficient solutions to reduce transit perishable products.
opportunities times. We have seen a surge in demand Pineda of the Miami-Dade Aviation
Recent global disruptions like the Red from the UAE to North America. UAE is Department emphasises the significance
Sea crisis and US port strikes have rein- an important hub for Sea-Air and Air-Air of Miami International Airport (MIA) in
forced air cargo’s position as a reliable services from Asia to Europe and the handling perishables, stating, “MIA is
transportation alternative for shippers. Americas. a leading entry point and distribution
For example, during the recent US port The same applies to port strikes. hub for international goods entering the
strikes, many shippers, particularly those Kuehne+Nagel is committed to help- US market. This is most notable in the
handling perishable goods, shifted from ing its customers based on their needs perishables segment, where MIA alone
ocean to air transport to avoid delays. to mitigate supply chain disruptions accounts for 68% of all US perishables
Although the tentative deal on wages has by offering alternative solutions and imports by air. This figure includes 91%
ended, the strike, this shift underscores air capacity such as air freight or combined of all cut flower imports, 65% of all fruit
cargo’s value in maintaining supply chain sea-air freight solutions,” says Randig of & vegetable imports, and 56% of all
stability amid uncertainties. Kuehne+Nagel. seafood imports.”

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