Maritime transport sails stormy seas against political and structural headwinds
Shaky outlook for seaborne trade as uncertainty over world economy remains
Environmental sustainability agenda steers maritime industry towards cleaner fuel sources
World maritime trade lost momentum in 2018, with volumes expanding at 2.7%, below the historical averages of 3.0% and 4.1% recorded in 2017.
Total volumes are estimated to have reached 11 billion tons, an all-time high, according to UNCTAD records. UNCTAD is projecting 2.6% growth in 2019 and an annual average growth rate of 3.4% for the period 2019–2024. However, the outlook remains challenging, given the heightened uncertainty regarding trade policy and wide-ranging downside risks clouding the horizon.
Said UNCTAD Secretary-General Mukhisa Kituyi: ‘The dip in maritime trade growth is a result of several trends including a weakening multilateral trading system and growing protectionism. It is a warning that national policies can have a negative impact on the maritime trade and development aspirations of all.’
In 2018, world merchandise trade growth decelerated at an unexpected rate, and tariffs on trade between China and the United States of America escalated amid mounting trade tensions and a proliferation of national trade-restrictive measures.
Apart from trade policy crosscurrents, geopolitics and sanctions, environmental concerns, fuel economics and tensions involving the Strait of Hormuz – a strategic maritime chokepoint – were in the headlines.
Other forces at work continued to slowly reshape the maritime transport landscape. A new normal, contrasting with the historical perspective, appears to be taking hold. This trend is characterized by overall moderate growth in the global economy and trade, a supply chain restructuring in favour of more regionalized trade flows, a continued rebalancing of the Chinese economy, a larger role of technology and services in value chains and logistics, intensified and more frequent natural disasters and climate-related disruptions, and an accelerated environmental sustainability agenda with an increased awareness of the impact of global warming.
A transition to the new normal calls for an improved understanding of the main issues at stake, better planning, and flexible and forward-looking-policies that can effectively anticipate change and enable appropriate response measures that take into account the heterogenous nature of developing countries as a group and their varied local conditions and needs.
A copy of the UNCTAD Review of Maritime Transport 2019 is available here:
Latest News & Events
VIKING Life-Saving Equipment has been declared the winning bidder in a tender covering three offshore high-speed ambulance boats that will support emergency services in the Aegean Sea.
The international tender was concluded after a cooperation between the Hellenic Coast Guard and the Greek Emergency Response Organization (EKAB) in an initiative supported and financed by the European Union under the INTERREG V-A Cooperation Programme 2014-2020.
It is understood that all three ambulance boats are scheduled for delivery during the summer of 2020, to take up station operating from remote Greek islands in the Aegean.
The vessels will be fabricated using the successful VIKING Norsafe Munin S1200 design and will be equipped with twin-diesel stern-drive engines to achieve speeds of up to 40 knots, as well as cutting-edge navigation instruments.
It has been reported in Kenya that Kenya Ports Authority (KPA) intends to invest US$193 million to modernise four berths at the port of Mombasa. Our illustration here shows Mombasa’s second container terminal (www.africaports.co.za © ).
While the berths have not been identified it is understood that they currently handle containers and breakbulk general cargo.
Financing will come from commercial rated loans being offered by the European Investment Bank and French development agency AFD, according to Daniel Manduku, the managing director of the Kenya Ports Authority (KPA).
The port of Mombasa recently opened a new container terminal which is being operated by a division of the Italian shipping company, MSC. The port is the main gateway port for neighbouring landlocked countries in the East Africa region – Uganda, Rwanda, Burundi, South Sudan, southern Ethiopia and parts of eastern DRC.
