By Jennifer  Cheng

The COVID-19 pandemic of 2020 had an unprecedented global impact, especially on the supply chain. The sudden onset of the pandemic has left many industries unprepared for shutdowns and production stoppages. The impact on the supply chain has been particularly severe. In the early stages of the epidemic, many companies had to increase shipments to meet demand due to supply chain disruptions and commodity shortages. This resulted in an advantageous market for freight forwarders. Shippers, on the other hand, faced a shortage of supply. Now, the entire freight market has changed. Cargo volumes have fallen dramatically compared to last year, and shippers are enjoying a bargaining chip in the freight market that they haven't seen in years. Many companies are taking advantage of this period to offset past transportation costs due to the epidemic, and are further using the opportunity to improve the quality of their transportation partners to ensure better service when the market returns to normal.

The downturn in global trade is reshaping the global economic landscape and creating opportunities for some countries. Countries that rely on domestic demand, such as the United States and India, are the winners, while countries that rely on exports, such as China and Germany, face some challenges. According to a report by the Center for International Trade (CIT), the volume of global trade is expected to decline significantly in 2021 as a result of the COVID-19 outbreak. This is mainly due to disruptions in the global supply chain, logistical problems and reduced demand. This puts a lot of pressure on countries that rely on exports as their main markets are stagnant. Meanwhile, countries that rely on domestic demand have shown some resilience. Countries such as the United States and India have implemented large-scale stimulus measures to boost domestic consumption and investment, easing the economic pressure. These countries have large markets with strong domestic demand, and are able to reduce their sensitivity to external economic shocks. In addition, the global trade recession is also pushing some countries to further strengthen the development of their domestic industries and supply chains. This has had a positive impact on improving the competitiveness of their industries, reducing their dependence on imports, and creating job opportunities.

Globalization used to be an important force for economic growth and close cooperation among countries, but in recent years there has been a rise in anti-globalization movements. This movement advocates the concept of "de-globalization" and has aroused widespread concern and discussion in many countries. The effects of the Ukrainian War and the New Crown Epidemic have been cited as important factors in the intensification of the anti-globalization movement. The weakening of global trade largely reflects a number of temporary factors and long-term changes, which have had different impacts on the global economy. There are many temporary factors behind the sluggishness of trade. On the one hand, rising interest rates and the cost of living have put pressure on businesses and consumers, leading to a fall in demand. On the other hand, the easing of the global commodity shortage and the rebound in corporate inventories have also had an impact on global trade. At the same time, there are also some long-term factors affecting global trade. The policies of Western countries have become more protectionist, which has brought some uncertainty to the global trade system. Increased trade frictions and tariff measures have made it more difficult for multinational enterprises and restricted the development of cross-border trade. Some countries have also used economic measures as a tool for geopolitical competition. Measures such as technology embargoes and foreign investment controls have made the business environment more complex and have had some impact on global trade.

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