| Imports and exports in the midst of Global Financial | | | | domestic demand and wean themselves off their |
| Crisis | | | | reliance on export markets. |
| With the world in the grip of a deep recession and no | | | | These nations, it seems, would much prefer to |
| clear way out, how have imports and exports been | | | | import more. This is good news for international trade |
| affected? How have those who rely on shipping | | | | going forward, as this will even out some of the |
| trade been getting along? | | | | trade imbalances that have occurred in recent years, |
| Short term credit | | | | and encourage more trade going forward. |
| The first point to note is that this crisis has affected | | | | Reluctance to put restrictions on trade |
| credit, but more importantly for the shipping industry, | | | | During the biggest major financial and economic crisis |
| short term credit used for shipping transport has | | | | - the Great Depression - most of the major |
| dried up, with some port agents refusing to even | | | | economies in the world resorted to protectionist |
| accept credit notes from certain banks. Short term | | | | measures, such as unbearably high import tariffs and |
| credit use in the shipping industry is wide spread, so | | | | harsh trade legislation. These measures did little to |
| this is a major issue. This has had a big impact for | | | | help the situation and in fact exacerbated problems. |
| the shipping industry as a whole, as businesses | | | | The UK has come out and said that it will not resort |
| struggle to hold on to cash and try and live on a | | | | to protectionism to help their ailing economy. The |
| credit-free diet. | | | | rest of the world has, so far, adopted a similar |
| Developing economies push towards domestic | | | | attitude. The lessons learned from protectionism |
| demand | | | | during the Depression means that it will take a very |
| The US has been heavily impacted by the crisis, | | | | foolish (or brave?) politician to implement such |
| where the global meltdown started. High profile | | | | measures again, especially in the new globally |
| developing countries have had to change tack. In the | | | | connected era. |
| past the economies of India, China and even Brazil | | | | At the moment, times are not as good as they once |
| fueled their growth by producing cheap goods and | | | | were for the shipping industry, which has not proven |
| relying on first world economies, such as the US and | | | | immune to the pressures of the global economic |
| EU, to purchase their goods, thereby bringing in much | | | | slowdown. But given the change of focus developing |
| needed foreign capital, as well as stimulating demand | | | | nations and the continued open trade environment, |
| and increasing production. | | | | business has not been too bad. Looking forward, |
| Well, the party is over now, and these nations | | | | imports and exports should start to see some |
| (particularly China), are looking to the future by | | | | recovery and even modest growth by the end of |
| investing in their local economies to stimulate | | | | the year. |