|

Global trade: China extends port dominance – Standard Chartered

Standard Chartered’s Madhur Jha and Ethan Lester highlight that around 80% of global trade moves via sea routes, with Asia, and particularly China, increasingly dominant in port rankings and liner shipping connectivity. They note that enhanced Chinese connectivity and rising intra-EM trade are reshaping global logistics, relative terms of trade, current account performance and supply-chain stress dynamics since the 2025 tariff shock.

China’s connectivity reshapes global trade flows

"Around 80% of global trade is transported over sea routes and handled at ports. Reflecting growing intra-EM trade, World Shipping Council data shows that ports in Vietnam, Morocco, Thailand and India entered the world’s top 25 ports for twenty-foot-equivalent units (TEU) of cargo processing in 2024."

"China now has 11 of its ports in the top 25, displacing several European, US and Australian ports. These shifting patterns have implications for the global logistics industry, relative terms of trade, C/A performance, potential penalties for tariff avoidance, and competition over supply-chain nodes."

"Port dominance is strongly linked with UNCTAD’s Liner Shipping Connectivity Index (LSCI), a composite measure that tracks the number of observed ship arrivals, cargo volume capacity, provision of shipping services by companies, and the ability to complete a journey without layovers."

"Despite escalating trade tensions over the last decade, China has extended its lead over all other economies in terms of global liner shipping connectivity. China’s bilateral connectivity is broad-based across regions, allowing its exporters to tap efficiently into external demand."

"China’s enhanced global liner shipping connectivity may be keeping a lid on container shipping disruptions affecting global supply chains, which have risen steadily since the ‘Liberation Day’ tariff shock in April 2025. China’s contribution to the World Bank’s Global Supply Chain Stress Index has decreased from c.50% before COVID to c.20% more recently."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

More from FXStreet Insights Team
Share:

Editor's Picks

AUD/USD meets support around 0.6900

AUD/USD remains well on the defensive, bouncing off three-month lows near the 0.6900 level ahead of the opening bell in Asia on Friday. The pair has accelerated its weekly downtrend in response to the marked advance in the Greenback and the widespread selling pressure on the risk-linked assets.


USD/JPY sits at weekly top above 158.00 as bullish USD counters intervention risks

USD/JPY is sitting at the top end of its weekly range above 158.00 in the Asian session on Thursday. Despite the softer US PCE data, oil-driven inflation risks keep US bond yields elevated near multi-year highs. Moreover, the US-Iran standoff benefits the safe-haven US Dollar and supports the pair. Broad US Dollar strength counters hawkish BoJ expectations and Japanese intervention risks.

Gold alternates gains with losses below $4,200

Gold trades without a clear direction on Thursday, always below the key $4,200 mark per troy ounce. The yellow metal’s vacillating price action comes amid the marked advance in the US Dollar coupled with steady effervescence in the Middle East conflict.

Near Protocol slides below $5.00 after Near Intents $4M exploit
Near Protocol (NEAR) uptrend has been cut short, as the price slides below $5.00 on Thursday. The correction comes after an exploit on the network’s Near Intents services, which affected deposits and withdrawals across 11 crypto networks. NEAR is currently trading at $4.88, below the daily high of $5.54, while falling momentum indicators suggest that sellers are gaining the upper hand.
Markets are pricing a Fed pause. The jobs data says the hike is still coming

The market has rapidly changed its mind about the Fed. Only a week ago, investors saw an October interest-rate hike as the most likely outcome. However, softer inflation and cautious comments from policymakers have since turned a pause into the dominant scenario.

Markets are pricing a Fed pause. The jobs data says the hike is still coming
The market has rapidly changed its mind about the Federal Reserve (Fed). Only a week ago, investors saw an October interest-rate hike as the most likely outcome. However, softer inflation and cautious comments from policymakers have since turned a pause into the dominant scenario. Yet beneath that dramatic repricing, the US economy is sending a considerably less dovish message.