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:
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Investments to improve efficiency and expand port capacity
Modernisation will help shift cargo from roads to shipping and railway
Turkey’s maritime industry is receiving a boost thanks to a new loan from the London-based European Bank for Reconstruction and Development (EBRD) of US$ 17.5 million to the operator of Tekirdag port on the Sea of Marmara. ICBC Turkey is providing an equal loan.
Ceyport Tekirdag Uluslararasi Liman Isletmeciligi is operating the port under a 36-year concession granted by the Turkish privatisation authority last year (2018).
It is understood that the EBRD loan will partially finance the acquisition of operating rights, the modernisation of the port and the expansion of its capacity, to which the company has committed under the concession agreement.
Tekirdag port handles general cargo, dry and liquid bulk, containers and ro-ro vessels and serves industrial and agricultural production and trade in the region.
It is the only port in the western Marmara Sea that provides both ro-ro and rail-ferry services to the eastern Marmara region. Enhanced port infrastructure will play a key role in directing a larger share of cargo from roads towards railway and shipping lines, which are more environmentally friendly alternatives.
The port operator is a subsidiary of Cey Group, one of the largest logistics groups in Turkey, which also includes Ceynak Lojistik and the operators of Samsun port and Mesbas port located in the Mersin Free Zone.
Member States of the IMO have urged further firm action in coming years to advance gender equality throughout the maritime sector and reach a barrier-free environment, following a year of action to “empower women in the maritime community” – the World Maritime theme for 2019.
IMO Assembly adoption of resolution
The IMO Assembly, meeting for its 31st session from 25 November to 4 December adopted a resolution on Preserving the Legacy of the World Maritime Theme for 2019 and achieving a Barrier-Free Working Environment for Women in the Maritime Sector.
This resolution urges governments, maritime administrations and the industry to endeavour to reach a barrier-free environment for women, so that all women can participate fully, safely and without hindrance in the activities of the maritime community, including seafaring and shipbuilding activities.
Furthermore, the resolution notes testimony from women from across the various maritime industries which demonstrates that barriers and obstacles still exist at every level. Work towards gender equality, including the fostering of a safe environment for women in the maritime sector, remains incomplete and should continue to be pursued.
Governments, maritime administrations and the industry should consider ways to continuously identify and overcome existing constraints in all aspects of the maritime sector, in particular, in terms of recruitment, promotion, training, capacity-building and technical cooperation.
