Paul Bingham, Economics Practice Leader at CDM Wilbur Smith Associates, says that “Several ongoing developments point to steady growth in exports in the coming years, including rapid economic growth among developing nations and a weak dollar compared to the currencies of those nations.”
Paul Bingham is active in transportation industry associations, and served as chair of the freight systems group with oversight of freight transportation committees for the Transportation Research Board. He is a member of TRB’s trucking industry research committee, and a past member of TRB’s freight modeling task force. He was an original member and served as chairman of the TRB freight transportation data committee, and is a past secretary of the TRB international trade and transportation committee. He currently serves on the board of the international trade data users’ group, and is a member of the National Council of the Transportation Research Forum.
He also stated that “US exports will be increasingly sought by a growing middle classes in China, Southeast Asia and Latin America, which view American products as having a higher quality.” Bingham believes that the US could become the “leader of supplying manufactured products to developing nations if small and mid-sized producers are encouraged to enter the export arena. The challenge for the US is to match Germany’s success.”
US exports are becoming more affordable to the growing middle classes of the developing nations of Asia and Latin America. Their economies are growing at up to three times the rate of the US, Japanese, and European economies. The weakened dollar is depreciating most against currencies in emerging economies, according to an article posted by the Journal of Commerce quoting Paul Bingham.
Bingham says that the US agricultural exporters are already profiting from these developments. He believes that US manufacturers would also profit if more companies produced for the export market. Bingham is quoted as saying that the US ocean shipping and ocean freight container trades “should bounce back in the long term and it will be exports that lead the way”.
If China allowed its currency to rapidly increase against the value of the dollar, Bingham believes that exports to China would grow even faster than they already are. He does point out that Congress punishing the Chinese for “holding back the value of the yuan is not the way to proceed in this issue”. He believes that “any move to punish China would invite retaliation”.
About the Author: Nelson R. Cabrera is the Business Development Manager of Lilly & Associates International, a transportation and logistics company specializing in ocean freight and ocean shipping services. For more information, please visit http://www.shiplilly.com/.
Sources:
http://www.wilbursmith.com/Paul_Bingham.html
http://www.joc.com/importexport/economist-says-us-exports-will-lead-trade-recovery