18 Maritime Nations Warn of a “Structural Shift” in Global Trade

The 18 maritime nations that make up the Consultative Shipping Group (CSG) have warned that global maritime trade is undergoing a “structural shift.” According to the group, geopolitical conflicts, trade barriers and growing fragmentation are putting pressure on the rules and frameworks that have long supported the functioning of international maritime trade.

Successive Shocks Are Driving Long-Term Change

The CSG said disruptions to maritime trade in recent years should no longer be viewed as isolated events.

The Covid-19 pandemic, the conflict in Ukraine, drought conditions affecting the Panama Canal and conflicts in the Middle East have all highlighted the vulnerability of global shipping networks to geopolitical, climate and economic shocks.

CSG representatives said: “These are not episodic shocks; they are signals of a structural shift in the operating environment of global trade.”

According to the CSG, key shipping routes and transshipment hubs are increasingly becoming sources of leverage and risk, making the movement of goods across borders more difficult to predict.

Growing Pressure on Maritime Rules

More than 80% of global trade by volume is transported by sea, making shipping essential to supply chains, food security and energy security.

However, restrictions on access to ports and shipping routes are increasing uncertainty in global trade while making it more difficult for businesses to develop long-term shipping and supply chain plans.

The CSG warned that unilateral policies and discriminatory trade measures could deepen the fragmentation of global trade. As a result, logistics and transportation costs could rise, adding further pressure on businesses and consumers.

According to the group, maintaining resilient supply chains requires continued protection of freedom of navigation and access to international shipping routes.

“Shadow Fleets” and the Risk of a Parallel Shipping System

The CSG also warned of the growing use of fleets operating outside, or at the margins of, conventional standards for insurance, safety and transparency.

The group uses the term “shadow fleets” to refer to vessels used, among other purposes, to evade or circumvent international sanctions.

According to the CSG, the expansion of these fleets is creating a parallel shipping system, in which companies that fully comply with international regulations operate alongside fleets with lower levels of transparency.

The coexistence of these two operating models could increase risks to maritime safety, the environment and the competitiveness of compliant businesses.

CSG Calls for Consistent Enforcement of International Rules

Rather than continuing to introduce new regulations, the CSG is calling on countries to strengthen coordination and improve enforcement of existing international frameworks.

The United Nations Convention on the Law of the Sea (UNCLOS) and standards established by the International Maritime Organization (IMO) remain, in the CSG’s view, the foundation of the international maritime system.

The group said these rules should be applied consistently across jurisdictions, while transparency and information-sharing among regulatory authorities should also be strengthened.

The CSG said: “Defending freedom of navigation therefore requires a focused and coordinated response grounded in globally recognized rules.”

The 18 member states also called on the international maritime community to uphold freedom of navigation and protect multilateral legal frameworks.

According to the CSG, if fragmentation continues, maritime chokepoints could become an even greater source of risk to global trade flows.

The CSG warned: “As the closure of the Strait of Hormuz demonstrates: When shipping supply chains fragment, the global economy fragments with it.”

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Source: Phaata.com (According to Container News)

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