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The New Face of Globalization and Its Impact on Trade

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The New Face of Globalization and Its Impact on Trade PREVIEW2019 10/ Winning Belt Road Project Business 12/ Looking Beyond Standard Risk Assessment 16/ CCTA Partnership Brings China’s Most Important Cargo Owners 18/ IMO2020: Are We Ready? 22/ Ports and Terminals of Breakbulk Asia 38/ Destination: 06/ THE NEW Shanghai FACE OF GLOBALIZATION contents Contents 04 18 5 Great Reasons to Attend IMO2020: Are We Ready? WITH KRISTIAN LUND KNUDSEN, MAERSK 06 The New Face of A Message from Sarah Gu, Globalization 22 Ports and Terminals of Event Director for WITH STEVE SAXON, MCKINSEY & CO. Breakbulk Asia Breakbulk Asia On behalf of my Shanghai event team, 10 and the entire Breakbulk global family I Winning Belt Road 30 am excited to welcome all our exhibitors, Project Business sponsors, delegates and industry partners to Event Essentials WITH HU DEDONG, Shanghai on 20 & 21 March for the 8th edition 30 Agenda of Breakbulk Asia. CMEC COMTRANS INTERNATIONAL 34 Exhibitor List 36 Floor Plan This year’s Breakbulk Asia Conference offers 37 Thanks to our Sponsors the very latest insight and trends, I urge you to schedule your time so that you don’t miss 12 out on the sessions you wish to attend – I Looking Beyond Standard know how easy it is to get distracted at large Risk Assessment events; catching up with clients and partners 38 WITH ROBIN ZHANG, AIG and discovering everything the exhibition Destination: Shanghai area has to offer. 38 What to See 41 Recommended Restaurants I am delighted that Breakbulk’s new Global 16 Event Partners initiative is being launched here in Shanghai - the GEP initiative was CCTA Partnership Brings conceived in order to showcase the truly China’s Most Important global presence of our exhibitors and Cargo Owners On the cover: Martin Bencher sponsors, there are over 35 companies participating at three or four of the Breakbulk events in 2019, and over 100 that can be found at two or more events. Please make an extra effort to engage with them during Breakbulk Asia is the second of four global Breakbulk events to be held in 2019. the event, they each have unique solutions See them all! To request information, visit breakbulk.com. that provide the answers to your problems – globally! Finally, I extend a warm welcome to all our VIP Shipper Club members, new and existing, I trust you will have an informative and productive event and we are excited to hear about live and upcoming projects that you are working on with our exhibitors. With so much going on at Breakbulk Asia please utilize this Event Preview to its fullest, it will really help you make the most of your two days with us. I look forward to seeing you soon in Shanghai! 2 BREAKBULK ASIA PREVIEW 2019 Register at www.breakbulk.com/bbasia2019 DO NOT DELETE DOWNLOAD THE FREE APP TODAY GREAT REASONS to Attend Asia’s Home for 5 New Project Cargo Business: ORGANISED BY: 300 150 5000+ attendees Over 10,000 m2 exhibition, shippers exhibitors from 70 countries conference and networking space Meet the decision-makers for Asia’s project contracts – governments, private sector project developers, 1 EPCs and global freight forwarders. Hear expert analysis to grow your business in this evolving region during 2 a full two-day conference. Extend your supply chain capabilities with new partners exhibiting at the event – international, regional and 3 local. Meet industry professionals from more than 70 countries, reflecting China’s expanding One Belt One Road 4 initiative. In Asia, relationships come first. Meet more potential business partners over two days than you could 5 anywhere else. Register now at breakbulk.com/bbasia2019 conference sessions The New Face of Globalization and Its Impact on Trade RELATED SESSION Wednesday, 20 March | 10:30 – 11:10 | Conference Theatre Asia Economic and Trade Outlook I. Challenges and Future Development Strategy of Breakbulk Shipping in China Di Xu, Chief Engineer, Economic and Strategy Research Center, China Waterborne Transport Research Institute II. Globalization in Transition: The Future of Trade and Value Chains Jeongmin Seong, Senior Fellow, McKinsey Global Institute Steve Saxon, Partner, McKinsey & Company 6 BREAKBULK ASIA PREVIEW 2019 Register at www.breakbulk.com/bbasia2019 The New Face of Globalization and Its Impact on Trade Steve Saxon Breakbulk talks to Steve Saxon, Partner, McKinsey & Company, about how globalization is undergoing a radical change and how it will affect trade, and ultimately, how these emerging trends will reshape the way our industry does business. Findings are from McKinsey Global Institute, the company’s business and economic research arm. What does your research find? Is globalization in retreat? Our research findings suggest that globalization is entering a new chapter, with different sets of countries and workers poised to benefit. Let me give you three examples. First, trade is still growing overall, but a smaller share of the goods made worldwide is being traded across borders. Countries are consuming more of what they make at home. Second, we’re moving past the Source: BigLift Shipping days of chasing low wages around the Register at www.breakbulk.com/bbasia2019 BREAKBULK ASIA PREVIEW 2019 7 Source: Swire globe. Today only 18% of trade involves If labor cost arbitrage is a small portion charges, are growing two to three times advanced economies importing from of the trade, what drives the rest? faster than goods trade. Part of MGI’s the lowest-wage countries. Third, trade new research involves sizing some of in services is growing 60% faster than The search for the lowest-wage labor the cross-border service flows that go trade in goods. Cross-border services is no longer a primary driver of global unmeasured in traditional statistics. and data flows are the new connective trade. Less than 20 percent of goods tissue of the global economy. trade today involves exports from low- The three uncounted aspects are wage countries to high-wage countries. the value-added services contribute So globalization is continuing but in a In fact, all industry value chains now to exported goods, the intangibles very different form. involve more high-skilled labor, while companies send to foreign affiliates, and investment in intangible assets (such free digital services made available to What are the evidences of countries as R&D, brands, and IP) has more than global users. National statistics attribute consuming more of what they make at doubled as a share of revenue, from 5.5 23 percent of all trade to services, but home? Why is this happening? to 13.1 percent, since 2000. including these three channels would increase their share to more than half. Although output and trade both How important is service trade? Official continue to grow in absolute terms, statistics suggest that it is much What will be the impact of technology a smaller share of the goods rolling smaller than goods trade. on trade? off the world’s assembly lines is now traded across borders. Between 2007 While trade negotiations today focus Over the past 30 years, digital and 2017, exports declined from 28.1 to on agricultural and manufactured technologies brought down 22.5 percent of gross output in goods- goods, services trade and cross-border communications and logistics costs and producing value chains. The major data flows are soaring. One of the key fuelled a boom in global trade. MGI’s factor behind this drop is what MGI findings of our research (as mentioned research finds that the next generation calls the “new China effect.” China and earlier) is that cross-border services are of technologies will have more complex other fast-growing emerging markets growing more than 60 percent faster effects. Some technologies, such as are now consuming more of what they than trade in goods. automation and AI, radically change make at home and developing more the importance of capital versus labor comprehensive domestic supply chains Some types of service trade, including and are causing companies to rethink – a healthy sign they are reaching a new telecom and IT services, business their geographic footprints. In some level of economic development. services, and intellectual property scenarios, new technologies could 8 BREAKBULK ASIA PREVIEW 2019 Register at www.breakbulk.com/bbasia2019 About the McKinsey Global Institute Since its founding in 1990, the McKinsey Global Institute (MGI) has sought to develop a deeper understanding of the evolving global economy. As the business and economics research arm of McKinsey & Company, MGI aims to provide leaders in the commercial, public, and social sectors with the facts and insights on which to base management and policy decisions. MGI research combines the disciplines of economics and management, employing the analytical tools of economics with the insights of business leaders. Source: Martin bencher Our “micro-to-macro” methodology examines continue to reduce trade intensity in What’s the implication for shipping? microeconomic industry trends goods while spurring more services to better understand the broad trade. For example, the rising sales of The good news is that demand will macroeconomic forces affecting electric vehicles could reduce trade continue to grow. More ships will be business strategy and public in vehicle parts (since EVs have many needed, both for the additional cargo policy. MGI’s in-depth reports fewer moving parts than traditional and for replacement. have covered more than 20 models) while also dampening oil countries and 30 industries. import. The demand though is likely to grow Current research focuses on six faster regionally than long haul. And that themes: productivity and growth, What’s changing for companies? has two implications. natural resources, labor markets, the evolution of global financial Today there’s new demand for all kinds The first is that the tonne-miles will markets, the economic impact of of products and services across the grow slower than the tonnage itself.
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