The falling ratio has been ascribed to the slowing globalisation as well as increasing protectionist measures being implemented around the world, spearheaded by the US.
Peter believes that the raised barriers to trade are here to stay as we enter a new decade, with the shipping industry stuck with the consequences.
“The trade war is the clearest example of these extra barriers to trade, and although a phase 1 deal was reached in December, the most difficult issues have yet to be addressed, and BIMCO, therefore, expects the trade war to continue to plague shipping between the US and China in 2020. Unfortunately, they are not the only countries engaging in tariff wars. The EU also faces additional tariffs from the US and we see trade tensions between Japan and South Korea,” Sand said.
