1. SHORT TERM GROWTH JITTERS
China’s slowing economy is generally bad news for the freight industry. But for some, like LTL drivers and Singapore, it’s not so bad. There have been plenty of news items too on the booming U.S. domestic economy (or is it busting?). A looming shortage of truckers. Or is there?
As we noted last month, most articles are rightly focusing on the negative. But in reality, world trade has never been so good. If China’s economy only grows by 5% this year, instead of the regular (read “phenomenal”) double digit annual growth of the last two decades, it is still impressive year on year growth, and comes off its largest ever base.
We liked Kevin O’Marah’s (SCM World) take on underlying trends in this Forbes article. The types of jobs created by China’s moving toward a consumer economy are harder to measure, so job growth and its knock-on economic growth is under-reported. Irrespective, China has always valued stability and unity beyond all else. He surmises “I’m happy to see China focused on the long game even if it means fudging the numbers along the way”.