Global Trade Data: Understanding the Language of International Shipments

International shipments produce a large quantity of information; each time goods are moved across borders there are details concerning the products, the countries, the companies, the quantities, the values, the dates of shipment, and other trade-related information. For businesses that are carrying out research into international commerce, gaining an understanding of this information is just as important as knowing the final trade figures.

Global trade data proves to be useful here.

Global trade data enables researchers to go beyond general import and export statistics and to look at the information connected with international shipments. If businesses learn how to interpret common trade terms and data fields, they will be able to better understand what a trade record means and how it can be used for research.

Instead of viewing trade data as a set of complicated figures, it is useful to consider it as a kind of language used in international commerce, since each item in a trade record gives additional information about the way in which goods are transported between markets.

What Is Global Trade Data?  

Global trade data is information about the buying and selling of goods and services between countries. This data covers details such as the type of product, its value, quantity, and where it is sent or received. Governments, businesses, and researchers use this data to track trade trends and make decisions. They might look at global trade data to find new markets, understand competition, or check how trade policies affect economies. Global trade data often comes from customs records, shipping documents, and reports from international organizations.

Information concerning global trade involves details about the flow of goods between countries. The kind of information that is available will depend on the country in question, the source, and the database, but the trade records might include data relating to the products, the importers, the exporters, the countries of origin, the destination countries, the shipment dates, the quantities, the trade values, the product classifications, and the transportation details where these are available.

If the information is put into a database, researchers will be able to search through it and analyse it in accordance with their own requirements.

For instance, a person who is researching a specific product might wish to find out where that product is being traded and which companies are mentioned in the relevant records. On the other hand, another researcher might be interested in examining the imports or exports of a certain country. Although their starting point could be different, the available information can still assist researchers in investigating international trade activity.

Why Understanding Trade Records Matters

Having access to trade information is only one element of the research process; the other element is understanding what the information means.

Someone who is familiar with the various fields in a trade record can make more effective use of the information available to them. Rather than looking at a figure without any context, they can think about which product, company, country, or time period the figure refers to.

For instance, a recorded trade value gains greater significance when it is taken in conjunction with the product that is being traded and the countries concerned. In the same way, finding out who the importer is becomes more useful when researchers are able to look at the products and the markets linked to the information available about that company.

It therefore becomes possible to turn raw records into organized research material if we understand the structure of trade information.

What is the product in question?

A basic question when it comes to any international shipment is this: 

What is the subject of the trade?

The product information gives a description of the items connected with a transaction or trade record. The products may be described by means of their product names, descriptions, classifications, or codes, according to the data available.

As a result of having this information, researchers are able to focus their search on specific goods rather than looking at the country's entire trade activity.

For instance, a researcher who is looking into a particular type of machinery might wish to look at only those records which pertain to that product instead of considering all trade relating to machinery. Information about the product can thus act as a starting point for in-depth trade research.

Understanding HS Codes and Product Classification

The vast variety of products involved in international trade means that it is important to have a system of classification.

HS codes, or Harmonized System codes, are generally employed for the classification of goods which are traded. They offer a standard framework for the categorisation of products in the context of international trade.

If researchers want to search for relevant records more accurately then they should understand product classification. Although a product might have various descriptions when using ordinary business language its trade classification offers a more structured method of identifying it.

Researchers must therefore take note of the classification system and terminology employed by the particular data source they are using. Using the correct classification can make a great deal of difference when it comes to filtering trade records.

Who are the importers and exporters?

A company's information is also a significant element of a trade record.

The exporter is usually the one who sends goods to another market, whereas the importer is usually the one who receives the goods in the destination market. Trade records can give information about the companies taking part in international shipments, according to the country and the data source.

This can assist researchers in investigating a company's involvement in particular trade activities.

For instance, a researcher could begin with a product and then look at which companies show up as importers or exporters in the relevant records; or the name of a company could be used as a starting point when investigating the products and countries associated with it.

There are thus two useful lines of research: one which begins with a product in order to find the companies, and the other which starts with a company in order to examine its related products.

Country of Origin and Destination

Geography is also a significant component of international trade information.

Trade records contain information regarding the countries associated with a shipment, for example the origin and destination of the goods. Researchers can thus examine the way in which products are transported between different markets.

For instance, a company might wish to find out which countries are involved in the trading of a specific product. In this case, researchers could look at the relevant records and compare the countries that occur in those transactions.

Country information can also be used to provide a proper context for company and product data; when a company is listed in a trade record the meaning differs according to which market is in question and what product is being traded.

Quantity and Trade Value

Two other important factors that researchers might come across in global trade data are quantity and value.

The amount recorded in relation to a trade entry refers to the quantity, while the trade value gives information about the monetary value of the transaction.

They can be used by researchers to look at how large the recorded trade activity is.

Yet it doesn't follow that such figures should be taken as a full measure of market size or of business performance. Before comparing the figures, researchers should take into account the definitions, units, currency, reporting practices, and methodology linked with the data source.

The circumstances surrounding a figure are often just as important as the figure itself.

Shipment Dates and Time Periods

Time is another important part of trade data.

A researcher can work out when a certain trade activity was recorded if it has a shipment date or a reporting period.

Studying records from various periods gives a more comprehensive view than looking at one transaction alone. For instance, researchers can compare the records available for different months or years in order to examine changes in the recorded activity.

It can be used to deal with questions like whether there has been a change in shipment activity, whether different companies are showing up over time, whether new countries are appearing in the records, or whether the mix of products has changed.

When making historical comparisons it is necessary to consider the extent and consistency of the data involved.

Reading a Trade Record as a Complete Picture

The true value of global trade data lies in linking together different fields.

Picture a record which includes information regarding the product, the exporter, the importer, the origin, the destination, the quantity, the value, and the date, each item in it giving a different answer to a question.

The product specifies what was traded, the exporter names the party who sent it, the importer names the party who received it, the origin shows where it came from and the destination shows where it was going, the quantity gives details of the amount reported and the value gives the monetary figure reported, while the date shows when the activity was recorded.

Considering all these elements together gives more context than looking at each one separately.

That is the reason why it is useful to learn the "language" of trade data.

How Businesses Can Use Global Trade Data for Research

When researchers have a good understanding of the basic fields they can carry out various types of research using global trade data.

When carrying out company research, businesses have the option of looking into the companies that are listed in the relevant trade records and checking the products and countries associated with them.

In order to carry out product research, researchers can track a particular product in different countries and look at the companies linked to its recorded trade.

When carrying out research into a country, businesses have the opportunity to look at the products and companies that are involved in that country's trade activities.

When carrying out shipment research, and where information at the shipment level is available, researchers can look at individual records and compare the activity over different periods.

The approaches can be combined according to the research objective.

Using Exim Trade Data for Trade Research

Businesses looking for international trade information can use Exim Trade Data as a resource.

A structured trade-data platform enables researchers to investigate information about products, companies, countries, and shipments based on the data that is available.

For instance, a researcher could start off with a product and then look into the companies and countries associated with it. In another case, a researcher might begin with a company and study its trade activities.

What is important is having a clear research question at the start.

Rather than going through the trade records without having a particular aim in mind, companies can first decide what they would like to find out and then use the appropriate data fields to investigate it.

What to Keep in Mind When Reading Global Trade Data

Trade data can be detailed, but researchers should avoid assuming that every database contains the same information.

Different sources can vary in country coverage, historical availability, product classification, company information, shipment details, update schedules, units, measurement methods, and available data fields.

This means researchers should understand the source and methodology before making comparisons or drawing conclusions.

It is also useful to compare multiple records instead of relying on one isolated transaction.

Trade data works best when it is treated as evidence for research, rather than as an automatic answer to every business question.

Turning Trade Records Into Meaningful Research

The process of using global trade data can be summarized in a simple way: identify, filter, read, compare, and interpret.

First, identify the product, company, country, or trade activity you want to study. Next, filter the available records to remove irrelevant information. Then, read the important fields and understand what they represent.

After that, compare multiple records or periods where appropriate. Finally, interpret the information within the context of your research question.

This process can make complex trade information easier to work with.

Final Thoughts

At first global trade data seems complicated since international shipments involve a number of different fields and terms; but after those elements have been understood, trade records become simpler to read and analyze.

The products indicate what is being traded, the companies show who is involved, the countries indicate where the goods are moving, and the quantities and values give information regarding the scale of the transactions whilst the dates tell us when the activity took place.