International Trade

Issue No. 45 - Feb/March 2009

Freight rates ease for global traders

Mark Callus, director of international trading firm Customs Agency Services, says his sector saw recessionary meltdown coming in mid-2008, but points out the sudden halt to global trade brings opportunity.

“Like the rest of the world, the volume of imports into Australia has fallen as Australians are finally tightening their belts,” Mark says.

“Our exports continue the slide that began last year due to extremely tough economic conditions with our main trading partners.

“Global trade is also falling as the world’s major banks are increasingly unwilling to trust or lend at an interbank level. This has led to an estimated $26 billion in global imports/exports not being shipped under normal financial credit, such as Letter of Credit. The banks simply do not have confidence in overseas’ banks.”

With 90% of all products shipped globally moving by sea, this overall downturn in volume has hit shipping lines hard.

“Sea freight rates from China to...

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