Lim Kai Ching, executive director of Uni-Asia Group, suggests that, based on his observation, shipping seems to be affected “quite positively” when there is volatility. Referring to the Covid-19 pandemic, Lim tells The Edge Singapore that the supply of vessels tightened while demand for shipped goods increased, which in turn propelled shipping charter rates higher.
Amid escalating global trade disputes, heightened geopolitical tensions, and an uncertain business environment, shipping — the anchor of international trade — is quietly cruising along as it has for centuries.
Without much fanfare, the world’s fleet of merchant vessels is still conveying raw materials from one continent to another for manufacturing purposes, or delivering the latest iPhones from China to legions of Apple worshippers all over the world. Overall, shipping accounts for 80%–90% of all goods traded by volume.
