TIM eMagazine Volume 3 Issue 8 | Page 28

Maritime Trade war threatens outlook for global shipping, warns new report Credits : unctad.org R eview of Maritime Transport reports 4% expansion in seaborne trade volume in 2017, projects similar growth for 2018. Seaborne trade expanded by a healthy 4% in 2017, the fastest growth in five years, while UNCTAD forecasts similar growth this year, according to its Review of Maritime Transport 2018. Volumes across all segments are set to grow in 2018, with containerized and dry bulk commodities expected to record the fastest growth at the expense of tanker volumes. The 2018 edition of the UNCTAD Review of Maritime Transport, marking its 50th year of publication, was launched at the Global Maritime Forum’s Annual Summit : https://www.globalmaritimeforum.org/ , that took place in Hong Kong on 3–4 October 2018. "While the prospects for seaborne trade are positive, these are 28 threatened by the outbreak of trade wars and increased inward-looking policies. Escalating protectionism and tit-for-tat tariff battles will potentially disrupt the global trading system which underpins demand for maritime transport". said Mukhisa Kituyi Secretary-General of UNCTAD The warning comes against a background of an improved balance between demand and supply that has lifted shipping rates to boost earnings and profits. Freight-rate levels improved significantly in 2017 (except in the tanker market), supported by stronger global demand, more manageable fleet capacity growth and overall healthier market conditions. Supply-demand improvements, namely in the container and dry bulk shipping segments, are expected to continue in 2018. Freight rates may benefit accordingly, although supply-side capacity management and deployment remain key. UNCTAD projects an average annual growth rate