UNCTAD Concerned With Freight Disruptions
The United Nations Conference on Trade and Development (UNCTAD) has expressed profound concerns over the escalating disruptions in global trade, particularly stemming geopolitical tensions affecting shipping in the Black Sea, recent attacks on shipping in the Red Sea affecting the Suez Canal and the impact of climate change on the Panama Canal
UNCTAD underscores the critical role maritime transport plays as the backbone of international trade, responsible for over 80% of the global movement of goods.
Trade disruption in the Black Sea, the Panama Canal and the Suez Canal routes.
The recent attacks on Red Sea shipping, coupled with existing geopolitical and climate-related challenges, have given rise to a complex crisis affecting key global trade routes.
UNCTAD estimates that the weekly transits going through the Suez Canal decreased by 42% over the last two months.
The ongoing conflict in Ukraine has triggered substantial shifts in oil and grain trades, reshaping established trade patterns. Simultaneously, the Panama Canal, a pivotal conduit for global trade, is grappling with diminished water levels, resulting in a staggering 36% reduction in total transits over the past month compared to a year ago. The long-term implications of climate change on the canal’s capacity are raising concerns about enduring impacts on global supply chains.
JJ Lawson continues to stay abreast of global shipping issues and is ready to direct our customers through the ongoing challenges around import and exporting.
Article Credit: https://unctad.org/press-material/unctad-raises-alarms-escalating-disruptions-global-trade-due-geopolitical-tensions