Chinese ocean trade is losing momentum, largely due to the country’s shifting strategy for economic development, which will see a reduced appetite for industrial raw materials, according to the first ever DHL Global Trade Barometer.
The barometer, an early indicator of global trade developments calculated using artificial intelligence, big data and predictive analytics, was officially released in Shanghai yesterday.
“With China’s economy shifting towards a more consumption and service-driven model, it’s no surprise that the growth outlook for ocean freight is significantly lower than before,” said Kelvin Leung, CEO, DHL Global Forwarding Asia Pacific.
According to the barometer, the decline in ocean freight has been offset by resilient exports in China’s main industries: household goods, automotive, and machinery parts. The country’s growth indices for household goods and chemical products also remain strong, though a decline in consumer fashion products is expected to continue weighing down Chinese air exports in the next three months.
DHL believes China’s overall economic outlook remains positive, despite the country receiving the lowest growth index of the world’s seven largest economies.
“The barometer’s results also suggest that China’s push to raise higher-quality global exports and domestic consumer spending are having the desired effect on trade and future economic development, with core industries like automotive and industrial manufacturing continuing to hold strong,” Leung added.