Category: Economics

India; sourcing opportunity

For years India has been looked to as the next global manufacturing powerhouse and it now appears to be finally becoming the manufacturing power and sourcing alternative to China that it has long promised to be. India’s Prime Minister Narendra Modi inherited an economy that was teetering on ... Read more

China makes too much, but production is moving

The West says China makes too much, but many manufacturers have moved production to other countries to cut costs, leaving once prosperous manufacturing hubs like Dongguan struggling to adjust. In recent years workers began to demand higher wages, while companies began cutting prices in order t... Read more

MPC Maintain the status quo…for now

On the 21st March the Bank of England’s Monetary Policy Committee (MPC) surprised no one by holding interest rates at 5.25% for the fifth time in a row, with eight of nine committee members voting to leave rates unchanged in March.  Despite maintaining the current status quo Andrew Bailey, ... Read more

Near-shoring boosted by supply chain disruption

The post-COVID environment, geopolitical uncertainty, protectionism, climate-change events and now the Red Sea crisis have all put pressure on global supply chains and as we discovered at TPM, companies are increasingly considering the evolution of their global supply chains to minimise risk and ... Read more

China dumping fears growing

The United States is voicing increasing concerns that Chinese manufacturing overcapacity will hit world markets, while the EU launched an anti-dumping investigation into China’s EV industry last year. Senior US Treasury officials told the Financial Times this week that a visiting US delega... Read more

Red Sea Crisis insurance withdrawals – fact or fiction?

In addition to fast-rising ocean freight rates and extended transit times, as the container shipping lines divert around Africa, shippers have been struggling to understand what (if any) insurance is in place, with insurance companies massively increasing war risk premiums and no longer willing t... Read more

The Gemini Cooperation

On the 17th January 2024, the 33rd day of the Red Sea crisis, Maersk and Hapag-Lloyd announced that they were forming a new shipping alliance - The Gemini Cooperation - in a major shake-up to the container shipping market on the East-West trade lanes. Industry analysts have been predicting tha... Read more

Insurers withdraw war risk cover

Since December 2023, nearly 30 commercial vessels transiting the Red Sea have faced missile strikes or near misses from the Yemen-based Houthis, including container ships owned by Maersk, MSC and CMA CGM. As of last week, 550 container ships have been diverted away from the Suez Canal or are p... Read more

General Red Sea Update

The US and UK carried out eight strikes on Houthi targets in Yemen on Monday, as the Iran-aligned armed group continues to target commercial shipping in the Red Sea, with no sign that the conflict will de-escalate anytime soon. While many hoped that the situation in the Red Sea might be a shor... Read more

Economic impact of Suez Canal diversions

For the UK and Europe fears are growing that any prolonged denial of access to the Suez Canal could impact faltering economies and derail plans to start cutting interest rates later this year. Despite the confidence of European and UK central banks, uncertainties about the Red Sea crisis' impa... Read more

Red Sea diversions disrupt China’s car supply chains

Carmakers had been struggling with a lack of car carrier RoRo capacity before the Houthi attacks began in the Red Sea and now with NYK and K Line suspending sailings via the Suez Canal nearly all big car car-carrier operators are diverting round the Cape of Good Hope, further reducing already squ... Read more

New Developing Countries Trading Scheme

The UK government launched a new preferential trading scheme, The Developing Countries Trading Scheme (DCTS) last year, to provide tariff concessions for developing countries exporting to the UK market. The DCTS replaces the Generalised Scheme of Preferences (GSP) and extends tariff cuts to hu... Read more