On an absolute basis the top 5 US – International import export destinations for air cargo are:
The FGX shipping break-down which represents a model more closely tracking parcel rather than cargo is:
With the globalization of the worlds respective economies and their interconnectedness becoming stronger, international shipping is set for growth over the next 20 years. Time definite international transactions, production flexibility and speed is what it’s going to take in the new economy to become or stay competitive.
Shipping by air has increased by over 80% in the last decade, despite recessions and other fiscal set backs. Much of this growth is happening due to the way goods and services are both created and consumed. Many of the goods and services that have primarily been supported either locally, over the ground or via ocean has moved to being supported via “air” transportation. There are too many examples supporting this growth that to go into now. The end result is that consumers get better product, lower costs, and quicker iterations in the goods and services that they buy.
McKinsey (one of the most well respected consulting firms in the world) states that 20% of goods produces world-wide are traded internationally today, this will be 80% by 2020. This is a tremendously powerful statement, what does this mean for your business over the next 8 years? I simply believe it means that you’ll either figure out how to do business internationally or die. Of course there will be exceptions to this dramatic statement, but I think we all get the point.
The countries accounting for 80% of air shipping in the world are in the Northern Hemisphere: North America, Western Europe, East and South East Asia. I’m not alone in thinking that the Southern hemisphere is going to become much more important over the next decade: Africa, Australia and South America. FGX is already seeing this trend play out in the growing shipping volumes to these destinations with our client base.
The world bank sponsored a large study that found that the quality of customs operations and lower corruption rates at this “pinch point” have an inverse relationship with the economic development of a particular country or region as measured by GDP per capital and direct foreign investment. I suspect (and hope) the global competition will start to clean up many of the more difficult countries clearance and customs practices to support global investment and growth.
The shipping market, if deemed a bell weather of an economy local or global is telling a story of opportunity for those of us that dare to expand. The very nature of FGX’s service allows us to work with companies that are doing just that. It is my honor to be working with our clients to help them act globally by utilising our direct methodology for shipping internationally. In turn our clients have chosen to reduce the amount of CO2 it takes to support their growth while increasing efficiencies for themselves and their stake holders.
I applaud you for refusing the status quo.
Cheers
Justin Brown, CEO
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