America is in the lead. Study: Global buying after corona's impact on economies declines

Because transport capacity cannot be increased in a short period of time, experts expect further bottlenecks until 2022.
 
The economic boom following the Corona recession has led companies to buy around the world, primarily companies in the United States.

 

While European and German companies in particular are at the bottom of the buying list, the United States is leading the frantic race for the required supplies, according to the results of a world trade study by credit insurer Euler Hermes.

The study attributes disproportionateness to the asynchronous recovery from the consequences of the closures, as the U.S. economy recovered again much earlier and more strongly than in Europe.

 

According to the study, shipments of goods from China to the United States have now increased by about 30%, while to Europe they have increased by only about 10%.

America is in the lead.

"Buying is at its strongest in world trade right now... "The United States is clearly ahead in the merchandise purchase race, partly because of early reopening." Van Hite Hoff explained that companies everywhere are trying in a hurry to fill their inventory, saying, "However, success in achieving these endeavours is not certain at the moment; given the continuing bottlenecks in supply chains, particularly in the cargo ships themselves, and the longest delivery delays in a decade, prices and therefore global trade costs are rising very rapidly to new record levels."

 

As a result, most European States, particularly Germany, found it difficult to fill their already low stocks.

 

According to a study conducted by the German insurance company Allianz, world trade has recovered rapidly and strongly this year.

Price increase

For the full year, Euler Hermes economists expect a 7.7% increase in the volume of goods and services traded worldwide, after an 8% contraction the previous year. Due to significant price increases, volume is expected to increase by about 15.9%, following a contraction of 9.9% in 2020.

 

"The decline in supply and demand was the reason for the decline in world trade in 2020, and "the factors influencing this year's increase in the value of traded goods and services, the return to normal conditions cause prices to increase by only about 15%, while seeking to increase inventories in return causes prices to increase by 50%," the study said.

 

The study also indicated that limited and high-priced cargo ship capacities cause prices to increase by about 35%.

 

Shipping companies are also causing a sharp rise in global cargo prices, with about 90% of shipping carried out by sea.

"Ship capacity is likely to remain limited in the short term... This, in addition to the uneven regional recovery, has caused inadequate investments in shipping in recent years."

 

Because transport capacity cannot be increased in a short period of time, Hit Hoff, like the shipping companies themselves, expects further bottlenecks until 2022.