Expect to see fewer ships coming into Halifax from across the Atlantic Ocean as the price of fuel skyrockets, says Jeff Rubin, a former chief economist at CIBC World Markets.
"Between the first and second OPEC oil shock, which was a period of great increase in oil prices, there was massive trade diversion away from transatlantic and transpacific trade and towards regional trade," said the author of the bestselling Why Your World is About to Get a Whole Lot Smaller.
"The share of non-petroleum imports crossing an ocean fell six per cent and the share of trade with the West Indies and the Caribbean went up six per cent. Six per cent doesn’t sound like that much. But over six years, that’s the diversion of billions and billions of dollars in trade.
"So I guess what I’m saying to Halifax is you’re probably going to see a lot less transatlantic trade, but you might see a lot more trade with the States. Canada, the U.S. and Mexico will become even more important trading partners to each other in a world of $150 oil than in a world of $70 oil."
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Expect to see fewer ships coming into Halifax from across the Atlantic Ocean as the price of fuel skyrockets, says Jeff Rubin, a former chief economist at CIBC World Markets.
