Maritime authorities from 18 nations warned Tuesday that diverging shipping rules and a growing "shadow fleet" risk splitting global trade into a two-tier system. The Consultative Shipping Group linked the strain to conflicts including the U.S.-Iran war and disruption at the Strait of Hormuz, and called for stronger international cooperation.
A warning from 18 shipping nations
The Consultative Shipping Group (CSG), an informal coalition of maritime authorities from 18 countries, warned in a joint statement issued Tuesday that "parallel systems" are emerging in global shipping. The group said this threatens to create a two-tier structure that undermines trust and safety at sea.
The CSG noted that more than 80% of global trade moves by sea, making the stability of maritime routes central to the world economy. Without functioning maritime trade, the group said, supply chains would fragment and the global economy would come to a sudden halt.
Repeated disruptions add friction
The group pointed to a string of disruptions that have raised uncertainty across supply chains, citing the Covid-19 pandemic, the war in Ukraine, drought in the Panama Canal, and the U.S.-Iran war. Conflict in the Middle East has created a major bottleneck this year because of blockades and fighting around the Strait of Hormuz, driving up prices for oil and fertilizers.
CSG members, which include the maritime authorities of Germany, Canada, Japan, the U.K., Denmark and South Korea, said geopolitical pressures on shipping are not episodic shocks but signals of a structural shift in the operating environment of global trade. According to the CSG: "Shipping routes are increasingly instruments of leverage and risk."
A shadow fleet undermines standards
The CSG warned that a growing number of vessels are now engaging in operations that circumvent sanctions. It described an unregulated shadow fleet of hundreds of ships operating outside standard insurance, safety and transparency frameworks, further fragmenting global supply chains.
That activity creates parallel systems within global shipping, the group said, bypassing environmental and safety standards and weakening predictability in maritime markets. The result, the CSG said, is one system governed by rules and another governed by opacity, with both ultimately weakened.
The group called on maritime nations to enforce existing international rules across jurisdictions and to support the development of common standards. Fragmentation in rules, it said, leads directly to fragmentation in markets and higher costs for businesses and consumers.
Source: CNBC
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