1/13/2024 0 Comments Owly express![]() The LSE asserts that if such costs are dealt with, “China and India could increase trade by 20%, while Brazil and Russia would increase theirs by 30% during post crisis recovery.”ĭP DHL’s CEO Frank Appel summarises the report by saying, “Transport, and logistics costs in particular, outweigh tariffs as the greatest barriers to trade by a factor of 9:1. Here, the economic power of air express is dependent on what it calls ‘review procedures’ that is, the transparency of ground cost as well as barriers such as customs. Interestingly the report contrasts sea freight costs with those of air freight, and specifically air express which it says are far less variable. Should India be able to reduce the cost of shipping to match Chinese levels, its trade would increase by 10% while Brazil and Russia’s trade would increase by 30% and by 50% respectively if they were to match China’s shipping costs”. The report suggests that increased productivity in the logistics sector has the potential to increase this growth, asserting that, “India for example, has shipping costs that are more than 50% higher than those of China, while Russian shipping costs are over four times as high. They believe that the fall in trade has been driven by problems with liquidity rather than any underlying problems, consequently it will quickly bounce back. The LSE asserts that their growth, which is predicted at an average 3.25% over the next 12 months, will result in boom in international trade. The LSE study examined the economies of the ‘BRIC’ countries (Brazil, Russia, India and China). Specifically the report, called ‘International trade, express logistics and globalization’, asserts that the Air Express sector will grow more rapidly than the global economy generally due to its ability to promote global trade in fast growing sectors such as healthcare, spare parts and the movement of documents. This interesting, if controversial, statement comes out of the London School of Economics, which produced the work for DHL. DHL has sponsored research on state of global trade that asserts that, “when world trade rebounds, the value of trade will increase faster than volumes”.
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