#trade diversification

Asia-Pacific Dry Bulk Shipping Market is undergoing a fundamental structural change as new commodity export hubs emerge and traditional trade routes are recalibrated. This shift is particularly pronounced in the movement of minor bulks, where investment in infrastructure for battery materials and green energy components is fostering an entirely new category of demand. Operators are responding by increasing the versatility of their vessels, moving away from single-commodity reliance toward a more flexible approach that allows for rapid adaptation to shifting global demand. This agility is becoming a core competitive advantage for the region's top-tier shipping firms.

Beyond mere volume, the quality of service and supply chain visibility is becoming a key differentiator for charterers. As end-users demand greater transparency regarding their supply chains, shipping lines are adopting blockchain and cloud-based tracking to provide real-time updates on cargo movement. This move toward a more transparent, data-rich maritime environment is helping to reduce administrative friction and improve port turnaround times, ultimately contributing to higher fleet utilization. The regional focus on improving port infrastructure in developing Southeast Asian nations is also playing a critical role, creating a more efficient and interconnected logistical network.

Environmental, Social, and Governance (ESG) considerations are no longer secondary to the operational goals of bulk carriers; they are now embedded in the core strategy of major regional players. The investment in dual-fuel engines and alternative propulsion technologies is accelerating as carbon taxes and regulatory requirements loom on the horizon. This proactive approach to sustainability is not only ensuring regulatory compliance but is also attracting a new cohort of environmentally conscious investors who view green shipping as a critical pillar of their portfolio. As the industry advances, this commitment to sustainable practices will likely become the standard for all major market participants.

Prime Minister Anwar Ibrahim has kicked off a high-profile African tour, visiting Ethiopia, South Africa and Kenya to position the continent as Malaysia’s next strategic growth partner. With Western markets cooling and global supply chains under strain, Malaysia is aggressively seeking new trade routes and consumer bases in fast-growing Africa. Speaking in Addis Ababa, Anwar told business…

In the summer of 2025, China’s economy stands at a compelling juncture—a powerful blend of determination and frailty, ambition and reality. The country’s glittering skyline and bustling ports belie deeper challenges: cooling domestic demand, a wary property sector, and deflationary tremors. Yet beneath the surface, glimmers of strength emerge—from innovation-led industry to export…

India is gearing up to shield its exports from global headwinds by widening its trade net. With the United States—India’s top export destination—facing tariff pressures, New Delhi has expanded its list of focus markets from 20 to 50 countries, covering nearly 90% of total exports. The government aims to intensify its promotion efforts, boost diversification, and launch the upcoming Export Promotion Mission (2025–2031).

Why the Shift?

The move comes against the backdrop of an impending slump in shipments to the US, where a new 25% tariff kicked in on August 2. Exporters had rushed shipments in July, driving up exports to the US by 20% that month, but trade is expected to cool going forward.

To safeguard momentum, India is doubling down on diversification—both in terms of markets and products.

Expanding Beyond Traditional Markets

Until now, India’s export promotion focus was on 20 key countries that together accounted for 60% of exports. With the addition of 30 new destinations such as Kenya, Spain, South Africa, Mexico, Tanzania, Egypt, Thailand, Belgium, Israel, Nigeria, and the Philippines, the scope has widened significantly.

These 50 focus markets now cover 90% of exports, giving India a broader base to push goods across geographies. According to a senior official, the chosen countries already account for 30% of exports and offer “significant room to expand the quantity and range of products.”

The strategy is already showing results. For instance, the Agricultural and Processed Food Export Development Authority (APEDA) facilitated exports of 15 new products to 28 new markets in just April–July this year.

Policy Push: FTAs, Digital Trade & Export Promotion Mission

Alongside market diversification, the government is pushing hard on trade policy and facilitation:

Free Trade Agreements (FTAs): Negotiations are being accelerated, especially with the UK and the European Free Trade Association (EFTA). The EFTA FTA (Switzerland, Norway, Iceland, Liechtenstein) will be effective from October 1, 2025.

Digital Trade Facilitation: Efforts are underway to streamline export processes through digital platforms, improving ease of doing business.

Export Promotion Mission (2025–2031): Soon to be launched, this six-year program will include two sub-schemes:

Export finance support – covering credit, factoring, insurance, and collateral solutions.

Market development & compliance support – covering quality standards, branding, warehousing, logistics, and capacity building.

Outlook

While exports to the top 26 of these focus markets grew to $91.5 billion in April–July 2025, 14 others saw declines. That divergence underlines the urgency of the government’s strategy.