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Visualizing the World’s Busiest Ports

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The World's Busiest Ports

The World’s Busiest Ports

An estimated 90% of world trade is facilitated by maritime shipping, and as trade volumes continue to increase, the world’s busiest ports continue to grow larger and more efficient to meet demand.

In fact, in just the last four years, the median annual volume of the top 50 ports jumped from 5.49 to 5.86 million twenty-foot equivalent units (TEUs).

Here are the world’s 20 largest ports, using the most recent data from the World Shipping Council:

RankPort NameCountry2016 Volume2012 Volume4-Year Change
1Shanghai🇨🇳 China37.132.5+14%
2Singapore🇸🇬 Singapore30.931.7-2%
3Shenzhen🇨🇳 China24.022.9+5%
4Ningbo-Zhoushan🇨🇳 China21.616.8+28%
5Busan🇰🇷 S. Korea19.917.0+17%
6Hong Kong🇭🇰 China19.823.1-14%
7Guangzhou Harbor🇨🇳 China18.914.7+28%
8Qingdao🇨🇳 China18.014.5+24%
9Jebel Ali🇦🇪 U.A.E.15.713.3+18%
10Tianjin🇨🇳 China14.512.3+18%
11Port Klang🇲🇾 Malaysia13.210.0+32%
12Rotterdam🇳🇱 Netherlands12.411.9+4%
13Kaohsiung🇹🇼 Taiwan10.59.8+7%
14Antwerp🇧🇪 Belgium10.08.6+16%
15Dalian🇨🇳 China9.68.9+8%
16Xiamen🇨🇳 China9.67.2+34%
17Hamburg🇩🇪 Germany8.918.890%
18Los Angeles🇺🇸 U.S.A.8.98.1+10%
19Tanjung Pelepas🇲🇾 Malaysia8.37.7+8%
20Keihin🇯🇵 Japan7.67.9-3%

Volume is measured in millions of TEUs

Only five of the top 20 ports in the world are now located outside of East Asia. The Port of Los Angeles is the only U.S. entrant in the top 20, and only three European ports made the cut.

Today, trade is more likely than ever to flow through the South China Sea.

Ruling the High Seas

From dollar store knick-knacks to nuclear reactor components, China’s manufacturing output is a critical link in the global supply chain. Getting all those products to consumers and companies around the world is big business, and over the past decade, China has emerged as the heavyweight champion of world shipping.

While Danish company, Maersk, is still the largest shipping line, an ever increasing share of the world’s container traffic is moving through Chinese controlled ports. An estimated two-thirds of container traffic now passes through Chinese ports or ports that have received Chinese investment.

New Kids on the Block

While shipping volumes on a global basis continue to rise, not all of that growth has been spread around equally. This is particularly true for established titans of the South China Sea.

At the outset of this millennium, Hong Kong and Singapore were home to the busiest ports in the world. Today, both are facing increased competition from neighboring ports, as well as declining volumes:

south china sea ports

In contrast, the massive Port of Shanghai saw a 71% increase over the last decade, and many other Chinese ports has seen significant growth in volume in recent years.

If China’s One Belt One Road initiatives and investments in global port facilities are any indication, the country’s domination of maritime shipping will only continue to strengthen in the near term.

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What History Reveals About Interest Rate Cuts

How have previous cycles of interest rate cuts in the U.S. impacted the economy and financial markets?

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Line chart showing the depth and duration of previous cycles of interest rate cuts.

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The following content is sponsored by New York Life Investments

What History Reveals About Interest Rate Cuts

The Federal Reserve has overseen seven cycles of interest rate cuts, averaging 26 months and 6.35 percentage points (ppts) each.

We’ve partnered with New York Life Investments to examine the impact of interest rate cut cycles on the economy and on the performance of financial assets in the U.S. to help keep investors informed. 

A Brief History of Interest Rate Cuts

Interest rates are a powerful tool that the central bank can use to spur economic activity. 

Typically, when the economy experiences a slowdown or a recession, the Federal Reserve will respond by cutting interest rates. As a result, each of the previous seven rate cut cycles—shown in the table below—occurred during or around U.S. recessions, according to data from the Federal Reserve. 

Interest Rate Cut CycleMagnitude (ppts)
July 2019–April 2020-2.4
July 2007–December 2008-5.1
November 2000–July 2003-5.5
May 1989–December 1992-6.9
August 1984–October 1986-5.8
July 1981–February 1983-10.5
July 1974–January 1977-8.3
Average-6.4

Source: Federal Reserve 07/03/2024

Understanding past economic and financial impacts of interest rate cuts can help investors prepare for future monetary policy changes.

The Economic Response: Inflation

During past cycles, data from the Federal Reserve, shows that, on average, the inflation rate continued to decline throughout (-3.4 percentage points), largely due to the lagged effects of a slower economy that normally precedes interest rate declines. 

CycleStart to end change (ppts)End to one year later (ppts)
July 2019–April 2020-1.5+3.8
July 2007–December 2008-2.3+2.6
November 2000–July 2003-1.3+0.9
May 1989–December 1992-2.5-0.2
August 1984–October 1986-2.8+3.1
July 1981–February 1983-7.3+1.1
July 1974–January 1977-6.3+1.6
Average-3.4+1.9

Source: Federal Reserve 07/03/2024. Based on the effective federal funds rate. Calculations are based on the previous four rate cut cycles (2019-2020, 2007-2008, 2000-2003, 1989-1992, 1984-1986, 1981-1983, 1974-1977).

However, inflation played catch-up and rose by +1.9 percentage points one year after the final rate cut. With lower interest rates, consumers were incentivized to spend more and save less, which led to an uptick in the price of goods and services in six of the past seven cycles. 

The Economic Response: Real Consumer Spending Growth

Real consumer spending growth, as measured by the Bureau of Economic Analysis, typically reacted to rate cuts more quickly. 

On average, consumption growth rose slightly during the rate cut periods (+0.3 percentage points) and that increase accelerated one year later (+1.7 percentage points). 

CycleStart to end (ppts)End to one year later (ppts)
July 2019–April 2020-9.6+15.3
July 2007–December 2008-4.6+3.1
November 2000–July 2003+0.8-2.5
May 1989–December 1992+3.0-1.3
August 1984–October 1986+1.6-2.7
July 1981–February 1983+7.2-0.7
July 1974–January 1977+3.9+0.9
Average+0.3+1.7

Source: BEA 07/03/2024. Quarterly data. Consumer spending growth is based on the percent change from the preceding quarter in real personal consumption expenditures, seasonally adjusted at annual rates. Percent changes at annual rates were then used to calculate the change in growth over rate cut cycles. Data from the last full quarter before the date in question was used for calculations. Calculations are based on the previous four rate cut cycles (2019-2020, 2007-2008, 2000-2003, 1989-1992, 1984-1986, 1981-1983, 1974-1977).

The COVID-19 pandemic and the Global Financial Crisis were outliers. Spending continued to fall during the rate cut cycles but picked up one year later.

The Investment Response: Stocks, Bonds, and Real Estate

Historically, the trend in financial asset performance differed between stocks, bonds, and real estate both during and after interest rate declines.

Stocks and real estate posted negative returns during the cutting phases, with stocks taking the bigger hit. Conversely, bonds, a traditional safe haven, gained ground. 

AssetDuring (%)1 Quarter After (%)2 Quarters After (%)4 Quarters After (%)
Stocks-6.0+18.2+19.4+23.9
Bonds+6.3+15.3+15.1+10.9
Real Estate-4.8+25.5+15.6+25.5

Source: Yahoo Finance, Federal Reserve, NAREIT 09/04/2024. The S&P 500 total return index was used to track performance of stocks. The ICE Corporate Bonds total return index was used to track the performance of bonds. The NAREIT All Equity REITs total return index was used to track the performance of real estate. Calculations are based on the previous four rate cut cycles (2019-2020, 2007-2008, 2000-2003, 1989-1992). It is not possible to invest directly in an index. Past performance is not indicative of future results. Index definitions can be found at the end of this piece.

However, in the quarters preceding the last rate cut, all three assets increased in value. One year later, real estate had the highest average performance, followed closely by stocks, with bonds coming in third.

What’s Next for Interest Rates

In March 2024, the Federal Reserve released its Summary of Economic Projections outlining its expectation that U.S. interest rates will fall steadily in 2024 and beyond.

YearRange (%)Median (%)
Current5.25-5.505.375
20244.50-4.754.625
20253.75-4.03.875
20263.00-3.253.125
Longer run2.50-2.752.625

Source: Federal Reserve 20/03/2024

Though the timing of interest rate cuts is uncertain, being armed with the knowledge of their impact on the economy and financial markets can provide valuable insight to investors. 

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