Sea Trade Grows, but Capacity Grows Faster, UNCTAD Says; Environment Issues Raised
World seaborne trade, including shipping, port and logistics services, climbed by 4 per cent in 2011, said the U.N. Conference on Trade and Development's annual Review of Maritime Transport. But it said world ship capacity expanded much faster, at 10 per cent, and the supply and demand mismatch is bad news for the industry. Global port throughput expanded by 5.9 per cent in 2011, it said.
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The Review of Maritime Transport said supply and demand imbalances are squeezing freight markets and tightening the finances of many shipping companies, because such a situation tends to lower freight rates, compress earnings, and erode profit. The average cost of shipping a 20-foot equivalent unit (TEU) container from Shanghai to Northern Europe fell from $1,789 in 2010 to $881 in 2011, it said.
Meanwhile, the average size of the largest container ships increased by 11.5 per cent, it said. Between 2004 and 2011, the size of the largest ship deployed nearly doubled.
It cited noteworthy regulatory developments such as technical and operational measures to increase energy efficiency and reduce greenhouse gas emissions from international shipping, which was adopted under the auspices of the International Maritime Organization in July 2011. The measures take effect Jan. 1.
The report said future challenges include the need to reduce the high rate of energy use and curb GHG emissions. The transport sector also needs to adapt and build its climate resilience in the face of adverse climate change impacts, especially in ports, it said, since ports exposed to such climate change impacts as rising sea levels, floods, storm surges and strong winds.