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Japan's trade growth stagnates amidst slowing global trade
[19/07/08]
TOKYO, Jul 8, 2019 - (Media OutReach) - Japanese trade looks to stagnate in the coming quarter for the first time since 2015, according to data from the DHL Global Trade Barometer ("GTB" or the "Barometer"). The GTB, an early indicator of global trade developments calculated using artificial intelligence and big data, suggests that the downward trend for Japan's trade growth will accelerate between June and August 2019, dropping seven points to an overall index value of 50.[1]
"Japan's exposure to both sides of the ongoing US-China trade dispute appears to be taking a rising toll on its own trade outlook, with exports to China alone falling by 10% in May - causing overall exports to drop by nearly 8% as imports experienced a decline after unexpected growth in April," said Charles Kaufmann, CEO North Asia South Pacific, DHL Global Forwarding and President/Representative Director, DHL Global Forwarding Japan K.K. "Ongoing volatility and uncertainty in global trade conditions, coupled with indirect exposure to the tariffs being wielded in the US-China dispute, have created conditions where Japan's key manufacturing industries are exercising more caution than ever before."
Both air and ocean trade volumes are expected to decelerate to near-zero growth, with exports from Capital Equipment and Machinery, High Technology, Chemicals and Products and Machinery Parts for air exports, and Industrial Raw Materials and Land Vehicles & Parts for ocean exports, displaying the only significant gains.[2] Air exports remain relatively strong, even as the overall air trade outlook fell by 11 points to 50 due to a fall in air imports, while ocean trade looks set to contract with an index of 49 points.
Latest results show negative effects of trade wars
For the first time since its launch in 2018, the Barometer's results predict a slight decline in global trade in the three-month period ending in August 2019, with its overall world trade outlook dropping to just 48 index points.
Commenting on the latest forecast, Tim Scharwath, CEO of DHL Global Forwarding, Freight, said, "Amidst rising US-Chinese tensions, the slightly negative outlook for global trade for the third quarter of 2019 does not come as a complete surprise. The latest GTB clearly illustrates why trade disputes create no winners. Nevertheless, some major economies such as Germany continue to record positive trade growth. And from a year-to-date perspective, world trade growth has still been positive. Hence, we remain confident in our initial prognosis that 2019 will be a year with overall positive, but slower trade growth."
The continued trade disputes between the US and China have contributed significantly to that decline, with both countries experiencing the largest contraction in their trade outlook (-11 points for the US, -7 points for China) out of all countries surveyed by the Barometer.
Scharwath added, "The GTB is a useful tool for us to anticipate economic developments at an early stage. We are well-prepared to tackle the forecasted developments. Our divisional structure and portfolio as well as our worldwide activities allow us to balance economic effects within the company and remain resilient to changes in global trade dynamics."
[1] In the Global Trade Barometer methodology, an index value above 50 indicates positive growth, while values below 50 indicate contraction.
[2] Click here for more information on the outlook for air freight and ocean freight or the key sectors in Japan. https://bit.ly/2XSv6zA
About the Global Trade Barometer
Launched in January 2018, the DHL Global Trade Barometer is an innovative and unique early indicator for the current state and future development of global trade. It is based on large amounts of logistics data that are evaluated with the help of artificial intelligence. The indicator is published four times a year and the next release date is scheduled for September 2019.
For more information on the DHL Global Trade Barometer, please visit: https://www.dpdhl.com/gtb.
DHL - The logistics company for the world
DHL is the leading global brand in the logistics industry. Our DHL family of divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 380,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, energy, automotive and retail, a proven commitment to corporate responsibility and an unrivalled presence in developing markets, DHL is decisively positioned as "The logistics company for the world".
DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 61 billion euros in 2018.
Media Contact:
DHL Global Forwarding Japan K.K.
Sayaka Shirato
Tel: +81 (3) 6731-4221
E-mail: Sayaka.Shirato@dhl.com
DHL Asia Pacific & EEMEA
Corporate Communications and Responsibility
Jenny Yeo / Jeslyn Pua
Tel: +65 6879 8332 / +65 6879 8343
E-mail: apeemeamediarelations@dhl.com
Copyright 2019 JCN Newswire. All rights reserved. www.jcnnewswire.com
"Japan's exposure to both sides of the ongoing US-China trade dispute appears to be taking a rising toll on its own trade outlook, with exports to China alone falling by 10% in May - causing overall exports to drop by nearly 8% as imports experienced a decline after unexpected growth in April," said Charles Kaufmann, CEO North Asia South Pacific, DHL Global Forwarding and President/Representative Director, DHL Global Forwarding Japan K.K. "Ongoing volatility and uncertainty in global trade conditions, coupled with indirect exposure to the tariffs being wielded in the US-China dispute, have created conditions where Japan's key manufacturing industries are exercising more caution than ever before."
Both air and ocean trade volumes are expected to decelerate to near-zero growth, with exports from Capital Equipment and Machinery, High Technology, Chemicals and Products and Machinery Parts for air exports, and Industrial Raw Materials and Land Vehicles & Parts for ocean exports, displaying the only significant gains.[2] Air exports remain relatively strong, even as the overall air trade outlook fell by 11 points to 50 due to a fall in air imports, while ocean trade looks set to contract with an index of 49 points.
Latest results show negative effects of trade wars
For the first time since its launch in 2018, the Barometer's results predict a slight decline in global trade in the three-month period ending in August 2019, with its overall world trade outlook dropping to just 48 index points.
Commenting on the latest forecast, Tim Scharwath, CEO of DHL Global Forwarding, Freight, said, "Amidst rising US-Chinese tensions, the slightly negative outlook for global trade for the third quarter of 2019 does not come as a complete surprise. The latest GTB clearly illustrates why trade disputes create no winners. Nevertheless, some major economies such as Germany continue to record positive trade growth. And from a year-to-date perspective, world trade growth has still been positive. Hence, we remain confident in our initial prognosis that 2019 will be a year with overall positive, but slower trade growth."
The continued trade disputes between the US and China have contributed significantly to that decline, with both countries experiencing the largest contraction in their trade outlook (-11 points for the US, -7 points for China) out of all countries surveyed by the Barometer.
Scharwath added, "The GTB is a useful tool for us to anticipate economic developments at an early stage. We are well-prepared to tackle the forecasted developments. Our divisional structure and portfolio as well as our worldwide activities allow us to balance economic effects within the company and remain resilient to changes in global trade dynamics."
[1] In the Global Trade Barometer methodology, an index value above 50 indicates positive growth, while values below 50 indicate contraction.
[2] Click here for more information on the outlook for air freight and ocean freight or the key sectors in Japan. https://bit.ly/2XSv6zA
About the Global Trade Barometer
Launched in January 2018, the DHL Global Trade Barometer is an innovative and unique early indicator for the current state and future development of global trade. It is based on large amounts of logistics data that are evaluated with the help of artificial intelligence. The indicator is published four times a year and the next release date is scheduled for September 2019.
For more information on the DHL Global Trade Barometer, please visit: https://www.dpdhl.com/gtb.
DHL - The logistics company for the world
DHL is the leading global brand in the logistics industry. Our DHL family of divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 380,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, energy, automotive and retail, a proven commitment to corporate responsibility and an unrivalled presence in developing markets, DHL is decisively positioned as "The logistics company for the world".
DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 61 billion euros in 2018.
Media Contact:
DHL Global Forwarding Japan K.K.
Sayaka Shirato
Tel: +81 (3) 6731-4221
E-mail: Sayaka.Shirato@dhl.com
DHL Asia Pacific & EEMEA
Corporate Communications and Responsibility
Jenny Yeo / Jeslyn Pua
Tel: +65 6879 8332 / +65 6879 8343
E-mail: apeemeamediarelations@dhl.com
Copyright 2019 JCN Newswire. All rights reserved. www.jcnnewswire.com
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