Geneva, November Trade, Transport and International Logistics: The role of trade facilitation

1)Globalization 2)Role of transport 3)Role of logistics 4)Role of trade facilitation Trade, Transport, Logistics and Technologies: An Introduction

1)Globalization 2)Role of transport 3)Role of logistics 4)Role of trade facilitation Trade, Transport, Logistics and Technologies: An Introduction

Globalization of trade What is meant by “Globalization” of trade? Global production, with increased trade in components and unfinished products

Globalization of trade

What are the causes of Globalization? Trade liberalization Telematics Standardization Transport and Logistics

Elasticity Trade/GDP Exports = 2.5 GDP – 3

Trade grows faster than GDP Source: data from UNCTAD and from WTO

For a country’s GDP to grow e.g. 5%, trade “needs” to grow 7 – 12%

Traditional “Geography of Trade” Transportation of all kinds of commodities for industrial processing (South -> North)

Traditional “Geography of Trade” Transportation of all kinds of commodities for industrial processing (South -> North) Exchange of industrial products for consumption (North North; and North -> South) Supplies of parts and components for industrial production (North North)

The emergence of the emerging economies Source: UNCTAD, Review of Maritime Transport, 2012 (forthcoming)

The emergence of the emerging economies Old Scenario: Developing countries exported large volumes of raw materials and imported high value (low volume) manufactured goods Source: UNCTAD, Review of Maritime Transport, 2012 (forthcoming)

The emergence of the emerging economies Today’s Scenario: Developing countries participate in globalized production. They also import raw materials and also export manufactured goods Source: UNCTAD, Review of Maritime Transport, 2012 (forthcoming)

1)Globalization 2)Role of transport 3)Role of logistics 4)Role of trade facilitation Trade, Transport, Logistics and Technologies: An Introduction

Mode of transport of global trade ? metric tons (excluding intra-EU)

Mode of transport of global trade metric tons (excluding intra-EU) Source: Global Insight

Mode of transport of global trade ? USD (excluding intra-EU) Source: Global Insight

Mode of transport of global trade USD (excluding intra-EU) Source: Global Insight

Example: You want to buy a car “made in Mexico”. Today: is its transport from Mexico to Geneva more or less expensive than 20 years ago? Globalization and international transport

Less expensive BUT: You pay MORE for “transport” then 20 years ago. Why?

1)Globalization 2)Role of transport 3)Role of logistics 4)Role of trade facilitation Trade, Transport and International Logistics: An Introduction

Logistics in the supply chain Source: “logistics management”, IML, Lausanne Transport Logistics Supply Chain

Logistics Expenditure in the United States CSCM – State of Logistics Report 2010

1)Globalization 2)Role of transport 3)Role of logistics 4)Role of trade facilitation Trade, Transport, Logistics and Technologies: An Introduction

Examples of technologies ?

International seaborne trade for selected years index of major commodities Source: UNCTAD Review of Maritime Transport, 2011

Trade is measured in “TEU”

Anytime: day and night operations

Anywhere: e.g. Tierra del Fuego in Chile

… the world’s driest desert

…Beirut

… Luanda

…Bangkok

Guayaquil … Hamburg (daytime)

… Bandar Abas

…Suez Canal

…Panama Canal

Lima

…Maldives

… France

Anyhow: intermodal

… into Burkina Faso

… Mekong River

Zambia … into Zambia

Anything:

Anything: The United Nations

Anything: e.g. port library in Rio de Janeiro

Technologies in international logistics 30 years ago: Containerization Today: Telematics

Fuente: Michael Schwank, TOC Americas, 2004 Intercambio de datos Information exchange Automatización Automation

[New] technologies can help… +Planning for cargo handling operations +Organizing onward transport +Improving cargo security +Tracing the status and location of cargo +Data exchange +Preparing transport documents +Customs clearance +… = trade facilitation

1)Globalization 2)Role of transport 3)Role of logistics 4)Role of trade facilitation Trade, Transport, Logistics and Technologies: An Introduction Questions?