Trump's imaginative ideas regarding customs are imposing a significant burden on freight traffic.
As the U.S. presidential elections approach, international trade is noticeably surging. Wary of a potential surge in protectionism under a new U.S. administration, "all of a sudden," stocks are being stockpiled, claims Angela Titzrath, CEO of Hamburger Hafen und Logistik AG.
The Hamburg-based logistics firm HHLA is witnessing a significant rise in trade activities prior to the U.S. election. "The apprehension that a new U.S. administration may further intensify its economic protectionism by imposing more tariffs has sparked a strong pulling effect," said Titzrath, in an interview with business magazine "Capital". "It's astonishing how trade with the U.S. has picked up this year, and all of a sudden, goods are being transported and stocks filled between the U.S., Europe, and Asia. Supplies are already being ordered ahead of the election and integrated into global supply chains."
This development is positive for Titzrath's company, which is gearing up for MSC, the world's largest shipping company, entering the market. "As a logistics company, we serve as a reliable barometer for economic and geopolitical shifts," stated the HHLA CEO. "I don't view this situation as pessimistic. Our revenue rose by 4.6% in the first half, and our profits jumped nearly 16%."
No Retreat from Globalization
Despite rising protectionism in various countries and numerous conflicts, Titzrath does not foresee a withdrawal from globalization. "I'm not a believer in deglobalization, but in free trade and international division of labor," she said. "But I believe that the globalization landscape will undergo changes: new markets will emerge, sustainability will become more significant in the future, and we'll all have to adapt to the fact that the world is constantly evolving."
The entry of MSC has attracted criticism from both Hamburg's parliament and employee representatives. Titzrath references the agreements with the new owner in this context. "I pledged to protect the workforce's interests. It's crucial that the culture and heritage of this proud, traditional company are preserved. There will be no layoffs in the next five years, and collective bargaining agreements must be honored."
This article was initially published on Capital.de
The anticipation of potential protectionist policies during the US presidential election of 2024 is leading to an increase in stockpiling of goods in preparation. This surge in trade activities before the election is resulting in goods being transported and stocks filled between the U.S., Europe, and Asia, with supplies being ordered ahead of time and integrated into global supply chains.
