According to the United Nations Conference on Trade and Development (UNCTAD), global shipping, which moves over 80% of the world’s merchandise trade, is being reshaped by geopolitical tensions, environmental mandates, and shifting trade policies.

UNCTAD reported that, according to its recent Review of Maritime Transport 2025, seaborne trade volumes are expected to only grow by only 0.5% in 2025. This slowdown has been brought on by the rerouting of ships around the Cape of Good Hope, resulting in an almost 6% increase in ton-miles.

Geopolitical instability, particularly in the Strait of Hormuz, continues to disrupt shipping lanes and drive up freight rates. According to a report by splash247, it said that skipped port calls and longer voyages are increasing operational costs. Meanwhile, according to a S&P Global report, growing volatility in freight rates was posing challenges for supply chain planning. Citing Drewry, S&P Global reported in the article that the maritime consultancy warned of potential fleet segregation, which would lead to the rerouting of Chinese-owned and-operated vessels away from U.S. ports. UNCTAD pointed out that developing countries, in particular, will be vulnerable to these cost pressures.

The International Maritime Organization (IMO) is preparing to implement its Net-Zero Framework, including a greenhouse gas (GHG) pricing mechanism to be in place by 2028. UNCTAD observed that only 8% of the global fleet is currently equipped to use alternative fuels, while ship recycling activity remains sluggish.

Ports are facing congestion, longer waiting times, and the need for cleaner and more advanced infrastructure. UNCTAD is advocating for expanded public–private partnerships, trade facilitation, and automation to improve port performance. As digital systems become increasingly prevalent, cybersecurity is also emerging as a critical priority, according to UNCTAD.

Source: UNCTAD, splash247.com, S&P Global