Global trade in January rose 2.4 per cent on the previous month to exceed pre-pandemic levels, despite a surge in Omicron cases worldwide and major supply chain disruptions, Kiel Trade Indicator data shows.
Volumes are now 7 per cent above the previous peak in August 2018, before the Covid-19 outbreak, figures compiled by the Kiel Institute for the World Economy showed.
"Despite the Omicron wave, global trade is running more strongly than ever before," said Vincent Stamer, head of Kiel Trade Indicator. "The continuing supply bottlenecks are therefore a result of an extremely fast increase in demand that supply cannot keep up with."
The Covid-19 crisis highlighted significant challenges in the logistics sector, with many cargo customers struggling to find shipping containers and overcome labour disruptions. The acute supply chain bottlenecks have led to congestion and delays at ports, a shortage in containers and a sharp rise in the cost of shipping goods.
Trade in the West has so far been spared by the Omicron wave, according to the Kiel Trade Indicator. US exports in particular were up month-on-month in January by 3.6 per cent, but imports were expected to fall slightly by 1.6 per cent.
Looking at the EU's January trade, there was a slight increase in exports of 0.6 per cent and a slight decrease in imports of 0.1 per cent.
For Germany, the outlook was positive for both exports, up 1.2 per cent, and imports, up 0.8 per cent.
In terms of goods trading, the Omicron wave has so far primarily affected the Chinese economy, the data shows.
Compared with the previous month, the Kiel Trade Indicator for January shows a drop in China's imports of 2.8 per cent and exports of 0.2 per cent.
"However, the Chinese New Year, and especially the hosting of the Olympic Games, are a test for the Chinese economy that the pandemic, and therefore also the economic situation, does not worsen," Mr Stamer said.
-
Performers create a flower display with LED lights during the opening ceremony of the Beijing 2022 Winter Olympics at the Beijing National Stadium on Friday, February 04, 2022. Getty -
Performers during the opening ceremony of the Beijing 2022 Winter Olympics. AFP -
China's President Xi Jinping, centre, and his wife Peng Liyuan, right, greet other attendees during the opening ceremony of the Beijing 2022 Winter Olympics. AFP -
An overview of the National Stadium during the opening ceremony. AFP -
Russia President Vladimir Putin arrives for the opening ceremony. Getty -
Dancers perform during the opening ceremony on Friday. EPA -
Performers create a flower display with LED lights during the opening ceremony. Getty -
Dancers perform during the pre-show ahead of the opening ceremony of the 2022 Winter Olympics, Friday, Feb. 4, 2022, in Beijing. (AP Photo/Jae C. Hong) -
View inside the stadium as performers dance during the opening ceremony. Getty -
Pakistan Prime Minister Imran Khan at the opening ceremony. Getty -
Performer’s dance during the opening ceremony. Getty -
Performers during the opening ceremony of the Beijing 2022 Winter Olympics at the National Stadium on Friday, February 4, 2022. AFP -
Performers take part in the opening ceremony of the Beijing 2022 Winter Olympic Games. AFP -
Firework display during the Opening Ceremony at the Beijing National Stadium. Getty -
A projection display during the opening ceremony of the Beijing 2022 Winter Olympics. Getty -
An overview of the stadium ahead of the opening ceremony of the Beijing 2022 Winter Olympic Games. AFP -
A general view inside the stadium during the opening ceremony of the Beijing 2022 Winter Olympics at the National Stadium. Getty -
Performers dance during the opening ceremony of the Beijing 2022 Winter Olympics. Getty -
Hosts address the crowd during the pre-show ahead of the opening ceremony of the 2022 Winter Olympics. AP Photo -
BEIJING, CHINA - FEBRUARY 04: A general view inside the stadium as fireworks are set off during the Opening Ceremony of the Beijing 2022 Winter Olympics at the Beijing National Stadium on February 04, 2022 in Beijing, China. (Photo by Richard Heathcote / Getty Images) -
Inside the national stadium before the opening ceremony of the Beijing 2022 Winter Olympics. Reuters -
Inside the national stadium before the opening ceremony of the Beijing 2022 Winter Olympics. PA -
A woman wearing a face mask holds a Chinese national flag before the Beijing 2022 Winter Olympics. Reuters -
Spectators arrive for the Opening Ceremony of the Beijing 2022 Olympic Games at the National Stadium, also known as Bird's Nest, in Beijing China. EPA -
Volunteers hold placards of Bing Dwen Dwen and Shuey Rhon Rhon, mascots of the Beijing 2022 Winter Olympics and Paralympics, during a community event at an Olympics Live Site before the Beijing 2022 Winter Olympics opening ceremony, in Beijing, China. Reuters -
A man waves a Chinese flag as people gather near the National Stadium, also known as the Bird's Nest, for the opening ceremony of the Beijing 2022 Winter Olympics, in Beijing, China. Reuters -
Members of Team United States during the opening ceremony. Getty -
Athletes of China march during the opening ceremony. EPA -
Athletes of China arrive for the opening ceremony. EPA -
Dancers perform around the large snowflake during the opening ceremony. Getty -
Opening ceremony of the Beijing 2022 Winter Olympics. Getty -
The Bird's Nest stadium during the opening ceremony. Reuters
Economic reopening of countries after Covid has spurred a surge in demand for goods and raw materials. Alongside that, the disruption in global supply chains has left the majority of the shipping sector with bumper earnings in recent months.
Dubai-based ports operator DP World on Monday reported a 9.4 per cent rise in 2021 container volumes, despite growth rates moderating in the fourth quarter, with all the regions it operates in reporting gains.
DP World handled 77.9 million 20-foot equivalent units last year across its global portfolio, up from 71.1 million TEUs in 2020, with Asia Pacific, India, the Americas and Australia regions recording double-digit growth.
"The strong volume performance leaves us well placed to deliver an improved set of full-year results," Sultan bin Sulayem, DP World chairman and chief executive, said.
The Covid-19 pandemic, continued supply chain disruptions, rising inflation and geopolitical uncertainty could "continue to hinder the global economic recovery," he said.
