Stretched and insecure supply chains hurt the poorest nations most
The UN Conference on Trade and Development (UNCTAD) warns that stretched global supply chains are driving up shipping costs, heavily impacting vulnerable economies, particularly small island and least-developed countries. The Review of Maritime Transport 2024 highlights how chokepoints like the Suez and Panama Canals have disrupted trade routes, raising fuel, wage, and emissions costs, especially on longer routes.
UNCTAD emphasizes the need for resilient infrastructure, a transition to low-carbon shipping, and international cooperation to prevent further supply chain instability. The report calls for better chokepoint monitoring, support for regional trade to reduce reliance on vulnerable routes, and stricter regulation of ship registrations to ensure fair trade practices.
The shift to alternative fuels will also increase costs, with current freight rates still higher than pre-pandemic levels. The slow pace of fleet renewal, with limited adoption of sustainable technology, poses additional risks to trade competitiveness. UNCTAD concludes that these challenges demand urgent, coordinated action to protect global trade and support struggling economies.
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Sources
www.seatrade-maritime.com
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