Maritime trade is stronger than it’s been for five years, but “tit-for-tat” tariff battles and restructuring by shipping companies threaten to disrupt its role as a key player in global commerce, the UN said.
The warning from UNCTAD, the UN Conference on Trade and Development, follows a “healthy” four percent increase in global seaborne commerce in 2017.
“While the prospects for seaborne trade are positive, these are threatened by the outbreak of trade wars and increased inward-looking policies,” UNCTAD Secretary-General Mukhisa Kituyi said. “Escalating protectionism and tit-for-tat tariff battles will potentially disrupt the global trading system which underpins demand for maritime transport.”
According to the Review of Maritime Transport 2018, 10.7 billion tonnes of goods were transported last year and nearly half were dry bulk commodities. These include iron ore bound for China, which is described as the “main factor” in recent global shipping growth.
Other factors driving uncertainty include the global energy transition, highlighted by slowing crude oil shipments from the Organization of Petroleum Exporting Countries (OPEC).
This has been partly offset by near double-digit growth in shipments of natural liquefied gas – to nearly 300 million tonnes – in 2017 – with Asia driving demand.
Among the report’s other findings, is the confirmation that developing countries – which supply most workers in the sector – continue to account for most seaborne trade, both in terms of imports and exports.
In total, they accounted for around 60 percent of total trade last year.
By contrast, developed countries saw their share of goods unloaded and loaded, go down, with both representing around one-third of the total.
One of the key drivers of change in seaborne trade has been restructuring by major shipping companies, which have seen “unabated” mergers and acquisitions.
Read and download the report Review of Maritime Transport 2018.
Original source: UN News
Published on 3 October 2018
