Supply Chain Research

Australia’s December trade surplus reached a record high of A$3.5 billion ($2.7 billion), beating economists’ expectations of A$2 billion. This was the result of a 32% jump in exports on a year earlier, following a 19% increase in November, which in turn was the result of a 66% hike in shipments to China. These are led by iron and coal exports, which may have been driven by the early lunar new year as well as displacing other suppliers including Brazil and South Africa. The recent collapse in bulk shipping rates raises the risk that this success may not have continued in January.