Logistics are critical to increase US export
published: cw 24, 2005 in Global Trade & LogisticsEven if a company automates its global trade management and reduces complexity, the speed and flexibility of its supply chain can still be hampered by a country’s infrastructure and logistics services. In particular, improvements in logistics services are critical to increasing U.S. exports, according to a new study by the United States International Trade Commission.
The Commission?s econometric analysis demonstrates that both U.S. merchandise exports and foreign merchandise exports transshipped through the United States are sensitive to the availability and quality of logistic services in the importing country.
Lower levels of logistics-related trade impediments - especially with respect to airport, seaport, and customs procedures - in the importing country are associated with higher U.S. merchandise exports. The effects on trade are most robust for U.S. airborne exports, which tend to be time-sensitive, higher-valued exports.
For countries that have the weakest logistic services environments, as measured by responses to the supplier questionnaire developed for this report, analysis shows that the reduction or removal of impediments could lead to significant percentage increases in U.S. merchandise exports.
Among other factors, the study shows a correlation between improved quality of airport logistics and higher U.S. exports.
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