Eastward push for global trade

A substantial shift to emerging economies is pushing eastward the world’s economic centre of gravity, says global logistics giant DHL in its latest study.
The third edition of DHL’s Global Connectedness Index (GCI) indicates that emerging countries are now involved in the majority of "international interactions".
This is in contrast to pre-2010, when the majority of international flows were from one advanced economy to another.
Global connectedness, measured by cross-border flows of trade, capital, information and people, has recovered most of its losses incurred during the financial crisis, says DHL.
The proportion of interactions that cross national borders gained momentum in 2013 after its recovery had stalled in the previous year.
But the world’s largest supply chain provider warns: “Nonetheless, trade depth, as a distinct dimension of globalization, continues to stagnate and the overall level of global connectedness remains quite limited.”
Trade depth represents a country’s international flows relative to the size of its domestic economy.
However the good news, especially for air cargo, is that improved international trade connections would see “gains of trillions of US dollars”. 
Frank Appel, chief executive of Germany’s Deutsche Post DHL, said: “In the aftermath of the financial crisis, globalization has increasingly come under pressure and international trade negotiations face growing resistance.
“In this environment of uncertainty, the DHL Global Connectedness Index offers a comprehensive, fact-based understanding of globalization and demonstrates the huge potential for countries to further increase their connectedness.”
The 2014 DHL Global Connectedness Index draws on more than one million data points from international flows covering trade, capital, information and people accumulated over the last nine years. The ranking encompasses 99 per cent of the world’s GDP and 95 per cent of the world’s population.

Share this story

Related Topics

Latest business news

Logistics UK reiterates call for dedicated logistics minister following election announcement

Logistics UK has reiterated its call for the creation of a dedicated logistics and supply chain minister following the announcement…

Read More

Share this story

Bloomberg: Private equity and shipping giants circle DB Schenker

German forwarding and logistics company DB Schenker has attracted bids from shipping and logistics giants as well as a private…

Read More

Share this story

DP World begins Punta Cana airfreight operations

Airfreight operations have begun at DP World’s air cargo logistics hub in Punta Cana, Dominican Republic with the arrival of…

Read More

Share this story

Air Cargo News

Air Cargo News
Established in 1983, Air Cargo News is the leading source of news, information, interviews, analyses and reports to the global airfreight industry. Our leading portfolio includes print, digital and events that give businesses in the airfreight industry the ability to connect with decision-makers in this sector.