Global maritime trade saw a 2.4% increase to 12.3 billion tons in 2023, a reversal from the previous year’s decline. This growth, as reported by the United Nations Trade and Development (UNCTAD), is expected to continue with a forecasted 2% growth in 2024 and average annual gains of 2.4% through 2029. However, container volumes lagged behind these overall gains, with a slight increase of 0.3% in 2023.
Challenges and Threats to Recovery
Despite the modest growth, the shipping industry faces significant challenges. Soaring freight costs and operational difficulties, primarily due to geopolitical conflicts, are major obstacles to long-term recovery. The report warns that these issues could potentially hinder the expected strengthening of container trade to 3.5% in 2024.
Impact on Global Trade and Economy
The report also highlights the impact of these challenges on global trade and economy. Disruptions to key routes through the Suez and Panama canals resulted in longer voyages, pushing ton-miles up by 4.2%. This, along with port congestion and rising operational costs, led to a surge in freight rates in 2024. If freight rates remain elevated, global consumer prices could increase by 0.6% by 2025.
The Role of Digital Technology
Despite the challenges, digital technology has proven to be a valuable tool in mitigating some of the industry’s issues. Blockchain, AI, and automation have helped ports, particularly in Asia, reduce waiting times, improve cargo tracking, and speed up transshipment.
The State of the Global Shipping Fleet
The global shipping fleet grew by 3.4% in 2023, outpacing trade growth but still falling short of historical averages. The total cargo capacity reached 2.4 billion tons, primarily driven by container ships and liquefied natural gas carriers. China, Japan, and South Korea dominated the shipbuilding market in 2023, accounting for 95% of global output.
The use of innovative digital technologies in the maritime industry is evident through the heightened efficiency, improved cargo tracking, and streamlined operations of ports in Asia. These advancements are crucial in navigating the challenges faced by the global shipping industry, ensuring a more resilient and adaptable sector for the future.
