Will a Rise in Protectionist Trade Policies Push SMEs Out of Global Trade?

IEEPA Refund Calculator Investor Relationship Financial Overview Company Overview Financial Overview Corporate Governance Overview Board of Directors Committees Internal Audit Regulations Shareholder’s Insights Shareholder’s Insights Shareholder’s Report Investor Contact Investor FAQ Contact MyDimerco English繁中简中 Home » Will a Rise in Protectionist Trade Policies Push SMEs Out of Global Trade?Will a Rise in Protectionist Trade Policies Push SMEs Out of Global Trade? by Dimerco | Apr 16, 2024 Small and medium-sized enterprises (SMEs) could be increasingly pushed out of international trade by giant corporations if the rise of protectionist trade policies continues. That’s the opinion of Marc Levinson, a leading author and economist who was a guest on the latest episode of the Dimerco-sponsored podcast, The Freight Buyer’s Club, hosted by Mike King. Levinson’s rationale is that new tariff regimes add complexity that smaller businesses can’t manage. He said on the podcast, “If you’re a giant company, you’ve got a whole staff of compliance people that can help you find the best way around trade barriers. They can make sure that you’re in compliance with this rule or that rule…and they can keep your goods flowing. “If you’re a tiny manufacturer, you can’t do any of this stuff. You don’t have that kind of staff. You can’t afford that sort of expertise….(As a result, international trade may) become the province of just giant corporations, with the smaller market participants forced to the edges.” Should that scenario play out, the winners might be global forwarders like Dimerco Express Group that can not only manage the physical movement of goods around the world but advise SMEs on the trade compliance and tariff implications of doing business in particularly countries. Are container ships too big? During the podcast, Levinson also questions whether the largest container vessels are fit for the purpose if future trade growth is regional rather than global. “I don’t think that these enormous vessels are really so practical, aside from the fact that they don’t really seem to have the economies of scale that were promised,” he said. “We’ve seen that they really lack flexibility in the face of a changing world economy. “The average distance of international trade is becoming shorter… Some trade is regionalizing. In other cases, you’ve got a lot of great growth in new countries (such as the Asia-Pac region) where the distance to trading partners is relatively short. “So you might want a 25,000 TEU ship to carry freight between Shanghai and Rotterdam, but is it really the most efficient way to carry freight between Shanghai and Mumbai, or Singapore or Indonesia? In those cases, I think the time required to deal with these giant ships in port will outweigh any advantages that may come from the size of the vessel.” Mr. Bronson Hsieh, consultant to Dimerco and former Chairman of Yang Ming and Evergreen, echoes Levinson’s thoughts in regard to today’s mega-vessels. “The pace and quantity of new builds should be reduced,” he says. “Most new vessels should serve as replacements for older ships and those on long-term leases. Carriers need a more cautious approach to fleet expansion considering changing trade patterns.”  A Return to Mercantalism? Levinson also talked about a shift toward protectionist trade policies being a “threat to trade,” citing as an example some of Donald Trump’s presidential campaign rhetoric on increasing tariffs on U.S. imports, particularly on goods from China. But Levinson said fears in some quarters of a return of mercantilism or a new Cold War were overblown. “I think mercantilism is probably a bit strong,” he said, “but we’re definitely moving to trade in some parts of the economy being much more driven by governments.” Explore Solutions with Dimerco Express Group Visit The Freight Buyer’s Club to subscribe to the Dimerco-sponsored podcast, which is produced for anyone with a professional interest in international trade, shipping, procurement, logistics and air cargo. The podcast features leading decision-makers, analysts, journalists, operators, and shippers who share their take on current freight and logistics markets and the challenges and opportunities. Do you want to explore the impact of protectionist trade policies on your business, or do you have a current global logistics challenge? Reach out to Dimerco for solutions and expert guidance. Our team is ready to navigate these challenges and ensure resilience against potential supply chain risks. Post Tags: Economic Challenges | Freight Forwarding | Ocean Freight | Podcast Episode | Supply Chain | Supply Chain Solutions We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.ACCEPT Cookie settingsManage consent Close Privacy Overview This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience. Necessary Necessary Always Enabled Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously. CookieDurationDescriptioncookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. Functional Functional Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Performance Performance Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. Analytics Analytics Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Advertisement Advertisement Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads. Others Others Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. SAVE & ACCEPT