jan.hoffmann@unctad.org geneva, november 2012. trade, transport and international logistics: the...

Jan.Hoffmann@UNCTAD.org Geneva, November 2012.

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 tradeWhat is meant by “Globalization” of

trade?• Global production, with increased

trade in components and unfinished products

Globalization of trade

Globalization of trade

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

Elasticity Trade/GDP

GDP

Exports

-15

-10

-5

0

5

10

15

1971 72 73 74 75 76 77 78 79

1980 81 82 83 84 85 86 87 88 89

1990 91 92 93 94 95 96 97 98 99

2000 01 02 03 04 05 06 07 08 09

2010

per cent annual growth

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)

0

1,000,000,000

2,000,000,000

3,000,000,000

4,000,000,000

5,000,000,000

6,000,000,000

7,000,000,000

8,000,000,000

2000 2001 2002 2003 2004 2005 2006

air

land

sea

Mode of transport of global trademetric tons (excluding intra-EU)

Source: Global Insight

0.27%

89.56%

10.17%

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

Source: Global Insight

Mode of transport of global tradeUSD (excluding intra-EU)

Source: Global Insight

0

1,000,000,000

2,000,000,000

3,000,000,000

4,000,000,000

5,000,000,000

6,000,000,000

7,000,000,000

8,000,000,000

9,000,000,000

2000 2001 2002 2003 2004 2005 2006

air

land

sea

14.09%

70.07%

15.84%

64.48%

• 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

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

Production

TransportInventory

LOGISTICS OPTIONS

Just-In-Time

Spatial organizationof collection and

distribution centres

Globalizationof production

Production

TransportInventory

LOGISTICS OPTIONS

Just-In-Time

Spatial organizationof collection and

distribution centres

Globalizationof production

Production

TransportInventory

LOGISTICS OPTIONS

Production

TransportInventory

Production

TransportInventory TransportInventory

LOGISTICS OPTIONS

Just-In-Time

Spatial organizationof collection and

distribution centres

Globalizationof production

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 yearsindex 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

Zam

bia

… into Zambia

Anything:

Anything: The United Nations

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

Technologies in international logistics

30 years ago:Containerization30 years ago:Containerization

Today:TelematicsToday:Telematics

Fuente: Michael Schwank, TOC Americas, 2004

Intercambio de datosInformation exchange

AutomatizaciónAutomatizaciónAutomation

[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?