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'South-South' Trade Lanes Connecting Latin America, Africa, Asia Grow in Importance

Changes in global trade have left freight forwarders and logistics operators open to additional liability, warns an insurance specialist.

Statistics compiled by the World Bank reflect the fast-growing influence of the so-called South-South trade routes among Latin America, Africa and Asia. The value of exports on this trade now exceeds that between the developing and developed countries of the world, representing 32 percent of total global trade. As both an influential import/export region as well as a key hub for the movement of goods in the South-South trade, the Middle East, and its transport operators are experiencing significant growth opportunities. In conjunction with this business growth has come a dynamic change in the amount and variety of services freight forwarders, logistics service providers and other transport companies are offering shippers.

“This trend is not limited to operators in the Middle East; indeed we are seeing such developments across the globe,” said

Andrew Kemp, regional director-EMEA of the freight transport insurance specialist TT Club.

Such new trade growth has meant that the demands on forwarders and other logistics operators are changing rapidly from the traditional organization of international movement of goods. Manufacturers, retailers and other shippers are increasingly requiring the provision of additional logistics services such as warehousing, sub-assembly and packing, with tight margins for error and sometimes harsh financial penalties for breakdowns in their supply chains.

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