The United States wasn’t always a powerhouse of exports. For some time after World War I, the U.S maintained a rather isolationist policy and was largely content to produce everything domestically. The first part of the 20th century looked very different in terms of international imports and exports.

Woodrow Wilson once said, “Britain has the earth, and Germany wants it.” A very true premonition of what was to develop throughout the rest of the twentieth century with two major world conflicts that would change the dynamic of international trade forever. So we thought we’d take a historical look at how America became an economic superpower and some of the major events that changed the way we do imports and exports. 

The United States would not enter World War I until after the conflict had been raging for almost three years. President Woodrow Wilson had initially pledged neutrality and it wasn’t until Germany got a little over-aggressive in international waters and sunk American liners like the Lusitania. As America sent its first wave of troops, the balance of power was already tilting from Britain to America.

In 1916, Britain bought more than a quarter of engines for air fleets, more than half of its shell casings, two/thirds of its grains, and almost all of its oil from foreign suppliers. America was the largest. Back in the States, this was slowly giving the American economy a boost and spearheading what would soon turn into a massive mobilization for production, factories, steel mills, and more.

It wasn’t long before American farmers were overproducing to send to Britain’s soldiers, factories were manufacturing to send steel supplies, and more. The economic potential of the United States all of a sudden became too apparent to politicians domestically and abroad. 

As the war raged on, American production became more and more important to the Ally effort. Once the war was over and the world had to sit back and reflect on what it had done and what had happened, international trade and the economy had certainly changed. During the decades between the two world wars, the Great Depression and learned to slowly revitalize its economy. Complex relations between nations would entangle the situation even further as countries like France, Britain, and Germany scrambled to pay off their debt, rebuild their societies, and re-strengthen their economies.  

The Home Front During the Second World War 

It would be about twenty years later that the world would see global conflict once more, but the signs of these changing economic powers began appearing as early as the 1930s when prominent leaders like Winston Churchill took note of Hitler’s economic ambitions. One the war broke out and the United States entered in 1942, the demand for the production of war materials skyrocketed overnight. Because the U.S mainland was not being bombed or invaded, America had its vast lands for production capabilities. 

What had been a steady flow of agricultural exports, for example, shot up and this increase continued for at least forty years. The American farmer was producing goods for people at home and soldiers abroad who needed an incredible amount of supplies and food. Hogs, poultry, eggs, dairy products, and vegetables were the top priorities of the agricultural export industry. 

The United States production during the war was massive and put people that had been out of work for some time right back to work, including women who had largely been discouraged from the workforce in the past. Here are some amazing facts about American production power during this time:

America produced and provided over two/thirds of all the Allied military equipment produced during the war. This included:

• • 297,000 aircraft
  • 193,000 artillery pieces
  • 86,000 tanks
  • 2 million army trucks
  • 41 billion bullets
  • 2.6 million machine guns 

All of this catapulted America into a prominent place in the world’s economy. In 1939, a few years before the war, the U.S was the 39th largest economy. In just a matter of years, it was number one.  

American Exports Today 

Today’s international markets look a lot different than they did following World War II. Slowly but surely all of the devastated countries recovered and regrew their economies. This includes Germany and Japan who had been absolutely devastated both in infrastructure, jobs, loss of population, and not to mention credibility on the world stage. Countries like Britain, however, never fully recovered to the empire status, of course. The United States became a powerhouse economy, driven by innovation and the ability for mass production. Today’s U.S major exports include:

• Commercial aircraft
• Industrial machines
• Semiconductors 
• Electric apparatus 
• Telecommunications 
• Medical equipment 

Even though the international trade landscape has changed in 2020, given the economic impact of things like the pandemic, here at Cordova Brokerage, we continue to support and guide exporters and importers looking to trade in the international markets. Connect with us today and ensure that your exports or imports are in compliance and following all of recent government regulations. 

The world of trade is interconnected. In fact, everything is connected through a vast network of social media platforms, websites, media sites, and, when it comes to our exported and imported goods, through a network of supply lines and international trade. As the world is watching carefully for the developments of the virus that has already altered life for many, these supply lines are a big part of keeping things moving. The outbreak has, of course, impacted global supply chains and so we thought we’d take a look at how we play a role in all of this.

Many might look back at the beginning of the outbreak with some curiosity, as frenzied buyers began fighting over the rolls of toilet paper in the grocery stores and shoppers rushed to stock up on canned goods and food. People feared that the supply chains would be completely disrupted, preventing people from accessing the goods they need. The good news is, that the domestic supply lines are still running and goods and products are still being transported throughout the country. 

Changes in the World of International Trade 

As experienced and licensed customs brokers, we handle all types of customs movements such as imports, exports, freight forwarding, and more. Every day, we deal with the international markets and the complex web that connects all of the world’s consumers and producers. We help U.S producers sell their products across international borders and do so efficiently and with full compliance with all customs laws here and abroad.  As word of the COVID-19 virus began to circulate, the world of export and imports began to see some changes. The world turned its head to China and suddenly realized just how interconnected we really are, as many U. S products are, in fact, imported from the country. 

Common Chinese Exports

There are a lot of products that we use in our everyday lives that come from China. You might be holding that device in your hand right now, as there are many production sites of Apple products and more in the country. In February of 2020, Apple announced it already expected its quarterly earnings to be lower than previously expected. This is partly because of a constrained global supply.  The activity of Chinese manufacturing plants fell since the beginning of the virus spread and will likely do so for a few months. Some of China’s main exports include:

• Electrical machinery, equipment  ($671 billion)
• Machinery including computers ($417 billion)
• Furniture, bedding, lighting, signs, prefab buildings ($99.5 billion)
• Plastics, plastic articles  ($84.4 billion)
• Vehicles (74.4 billion)
• Optical, technical, medical apparatus  ($73 billion)
• Knit or crochet clothing, accessories (71.4 billion)
• Articles of iron or steel ($69.6 billion)
• Clothing, accessories (not knit or crochet) ($66.8 billion)
• Toys, games ($62.8 billion)

In the past 18 years, China’s importance in the worldwide markets has increased dramatically. And perhaps this is why more countries around the world will feel the China markets drop. During the SARS epidemic of 2002, the effects on China’s transportation and manufacturing industries were not as big. Experts are projecting then that the effects of Covid-19 will be much broader because of the scope.  Many suppliers around the world receive materials from China which affects about 17,600 finished products. 

At the same time, The U.S also does a lot of trade with China. This means that we have some major exports going into that country as well. In 2019, according to Market Watch, U.S exported 120.3 billion in goods to China in 2018 including transportation equipment, computers and electronics, chemicals, machinery, oil and gas, crops, and more. 

Products From Every Corner of the World 

Today’s global economy is far more interconnected than ever before. Consumers today are used to seeing products from every corner of the world. It’s why you can go to your local grocery store and find products from Japan, Germany, or China. All of these exports and imports provide more choices to consumers across the globe. If a country is importing too many products as compared to its exports, this might end up affecting the country’s currency. 

While Global Trade is in Decline, Supply Lines are Vital 

And while the production of some computer products or other manufacturing has largely ceased, the production of food both domestically and abroad has continued. After all, maintaining the supply lines open is vital to the ability for societies to fight this pandemic. There have already been new measures set in place with countries like United States, China, Colombia, Canada, Brazil, and other WTO (World Trade Organization) members when it comes to the trade in Covid-related medical products, cutting import duties, curbing customs-clearance burdens and flexibility in licensing and approval. All of these measures should help and/or facilitate the movement of goods during these chaotic times. They also help make these goods a little more affordable for domestic consumers. 

In these trying times, keeping supply lines smoothly running will be a major part of the worldwide effort to battle the virus. Countries have already ramped up the production of certain medical products like masks, gowns, and gloves. Trade is a big part of the effort and any worldwide effort to improve the response to the virus by ensuring that countries are able to get the medical supplies and necessary equipment they need. According to some data, the average applied import duty on all Covid 19 medical supplies is 4.8% to 11.5% and about 17% for hand soap. No country today is completely self-sufficient and trade allows for the ability of necessary supplies and equipment to continue flowing and get to where it needs to go. 

Where We Come In — A Trusted Brokerage 

As we operate in the world of trade, exports, and imports, we are operating to serve people and businesses needing to continue their product trade in and out of the country. Here at Cordova Brokerage, we are on top of changes that happen in the world of customs and imports and exports. We ensure that we comply with all of the customs regulations and the ongoing changes to the trade policy that might happen during this chaotic time.

The goods we purchase every day—from our clothes to our home appliances—have often traveled a long journey to get on the shelf on which we buy them from. Every day, the world continues to produce goods, trade them, and transport them across borders and across the globe. The international supply chain is a magnificent and complex living thing that is always changing, growing, and adapting to global changes, demands, and downfalls. Here at Cordova Brokerage, we love being part of the bigger picture that is the global supply chain. Freight forwarding is part of this bigger process that is happening every day. 

While it might seem simple on the surface, freight forwarding actually involves many different components and occupies a very strategic position on the supply chain. It might seem that freight forwarding is nothing but the movement of physical goods from one place to the other, it is actually much more than that. There is a logistical component that plays a big role in getting these goods safely, legally, and orderly to the right place, at the right time frame, on the right budget, etc.  

The Early Days of Freight Forwarding and How it Has Changed Over the Years 

As we covered in previous blog posts, the history of trade goes back hundreds of years. Freight forwarding, in some way or another, was always part of that process of trading across borders. As of 1800, the earliest freight forwarders were known to be innkeepers that helped the hotel guests to hold and ship forward their goods. Over the years, as trade and business progressed, the role of the freight forwarder became a more professional and controlled business to business enterprise that helped merchants and traders ship their goods to other parts of the world. 

Established in  1836, Thomas Meadows and Company Limited helped the transportation of items through contracting using a network of local carriers. These services also helped their customers with documentation, tracking, and in regarding to customs. As the decades went on, of course, the advancement in transportation systems increased trade and made it much more effective when it came to forwarding freight. This access to better transportation such as steamships and trains, international trade was facilitated and therefore increased. 

Freight forwarders play an important role in businesses trading their goods across borders. Customs regulations and legalities can often require a lot of paperwork, and a reliable freight forwarder is in charge of all of this paperwork. For many businesses, these can be quite time-consuming. 

The Use of Technology in Freight Forwarding 

While the customs regulations and rules are still very much an inevitable part of international trade, the use of technology has really facilitated all of these processes. There is still a lot of forms and documentation to fill out, but the advent of wireless internet and functional software, tracking and documenting freight has become much easier. This has allowed for immediate tracking and following shipments, as well as easy documentation. 

Ways to Tell if Your Freight Forwarder is Trustworthy 

Forwarding your goods from one side of the globe to another and across borders means dealing with customs regulations from both countries. This is why it’s important then to make sure that your freight forwarder is trustworthy and is an expert in the industry of customs and brokerage. A few ways to assess the professionalism of your freight forwarder include:

Flexibility: In a perfect world, everything would always go as planned. When dealing with products leaving the factory, however, and being transported, there are often unforeseen circumstances. A reliable freight forwarder knows the process and has the tools and the capacity to deal with last-minute changes. 

Transparency: At the same time, a good freight forwarder should be able to supply you with status and tracking and be transparent about the transport of your product. A good forwarder will have the capabilities for cargo tracking and always change information on updates and important changes. 

Proven expertise and reputation:  A freight forwarder will have experience and understanding of various aspects of international trade. They will have an effective and efficient process and all of this will be reflected in their expertise and their reputation as a business. At Cordova Brokerage, our hands-on experience has served us as the best education for perfecting and implementing the best process and effective workflow. 

Choose the Experts and Secure Your Freight the Right Way 

A trustworthy and competent freight forwarder is a necessary part of your international dealings. Don’t risk not being in compliance or losing part of your shipment for trusting a freight forwarder that was not prepared to handle your job. Here at Cordova Brokerage, our expertise lies in the supply chain, customs, documentation, and transport. Give us a call today and see how we can help you with your freight forwarding.