Maritime authorities warn fragmentation threatens global shipping

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Maritime authorities warn fragmentation threatens global shipping
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CNBC

The Consultative Shipping Group, representing maritime authorities from 18 countries, warned that diverging national rules, sanctions-evasion networks and repeated chokepoint disruptions are creating parallel systems in global shipping. The group noted more than 80% of world trade moves by sea and cited recent shocks including the Covid-19 pandemic, the war in Ukraine, a Panama Canal drought and conflict around the Strait of Hormuz, which raised oil and fertilizer prices. It warned that an unregulated shadow fleet operating outside insurance and safety frameworks could fragment markets, increase costs and undermine maritime safety, and called for stronger international cooperation and enforcement.

Diverging rules risk creating a two-tier global shipping system.

Context

Global shipping faced recent shocks such as the Covid-19 pandemic and the war in Ukraine. Conflict near the Strait of Hormuz has raised oil and fertilizer prices. The group warns that without stronger cooperation, rules may fragment and…

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