Trade among Asia nations may transform global supply chain
October 20, 2010 - LM Editorial
While U.S. shippers have yet to measure Intra-Asia trade will have their sourcing strategies, one prominent ocean liner executive maintains that it will be significant.
According to Bronson Hsieh, Chairman of Evergreen Marine Corporation, this emerging market will be the focal point of container shipping industry in the future.??
“Our company anticipates that the intra-Asia market will continue to benefit from further liberalization of regional trade and the recovery of global economy,” he said. “With such growth potential, we believe the intra-Asia trade will continue to grow and its market size will be able to keep pace with the Trans-Pacific trade and the Far East - Europe trade.”
Bronson Hsieh is also a Vice Group Chairman of Taiwan’s Evergreen Group.
?Speaking at an industry conference in Taiwan, he added that despite the recovery of consumer demand in the U.S. and Europe, the growth of imports from Asia this year can offset the impact of financial storm and return to the pre-crisis levels.
Nari Viswanathan, vice president of research for the Aberdeen Group, made a similar observation:
“The so-called ‘emerging markets’ may come to dominate trade as they build relationships in the future.”
Speaking at the 2010 Supply Chain Council Executive Summit in Houston last week, Viswanathan noted that a variety of reasons will drive this trend, including energy savings.
Hsieh said that the expansion of China’s domestic market was key.
“Intra-Asia trade was able to reduce the impact of an economic recession,” he said. “So, in contrast to the severe decline in most trade lanes, the intra-Asia market was able to maintain a high degree of stability throughout the global financial storm.”