·
Senior
executives from major global shipping companies and industry organizations met
WTO Director-General Ngozi Okonjo-Iweala on 28 May to discuss mounting
challenges facing global goods trade.
·
Shipping
leaders warned that disruptions in key maritime chokepoints, especially in the
Gulf region, are increasing operational and economic pressures on global trade.
·
Companies
stated that efforts to reroute cargo through alternative maritime corridors are
significantly raising transportation costs for shippers and consumers.
·
Industry
representatives said global supply chains remain resilient, but tightening
transport capacity is creating serious logistical difficulties.
·
Executives
highlighted that:
o alternative land routes and ports are
already nearing saturation,
o shifting cargo away from sea routes has
practical limitations,
o and multimodal logistics are causing
customs-related bottlenecks and delays.
·
One
executive noted that around 70 freight trains are needed to match the carrying
capacity of a single container ship, illustrating the efficiency gap between
maritime and land transport.
·
Shipping
firms stressed the need for:
o greater investment in ports and logistics
infrastructure,
o smoother customs procedures,
o and predictable global trade flows.
·
Industry
representatives also emphasized adherence to multilateral trade norms,
including the principle of freedom of navigation.
·
WTO
Director-General Ngozi Okonjo-Iweala highlighted that maritime transport
carries over 80% of global trade volume.
·
She
called for stronger cooperation between governments and the private sector to
improve supply chain resilience.
·
The
WTO chief urged full implementation of the World Trade Organization Trade
Facilitation Agreement, including:
o digitalization of customs procedures,
o timely information-sharing,
o and limiting unnecessary trade
restrictions.
·
Participants
included executives from major shipping and logistics companies:
o MSC
o CMA CGM
o COSCO Shipping
o Hapag-Lloyd
o Ocean Network Express
o Evergreen Marine Corp.
o Yang Ming
o China Merchants Energy Shipping
·
Industry
bodies attending included:
o International Chamber of Shipping
o International Federation of Freight
Forwarders Associations
o World Shipping Council
Senior
executives from leading global shipping companies and industry groups underlined
growing operational and economic challenges to goods trade during a 28 May meeting
with WTO Director-General Ngozi Okonjo-Iweala. They noted that, while global supply
chains have demonstrated resilience, efforts to identify and rely on alternative
maritime routes amid disruptions - particularly in the Gulf region and other chokepoints
- are driving up costs for shippers and ultimately consumers.
The
industry representatives noted that while they were adapting and innovating, tightening
capacity constraints across transport networks were presenting serious difficulties.
With some alternative land-based routes and ports already saturated, shifting cargo
away from maritime routes presents significant limitations and imposes increasing
costs.
One
executive highlighted the scale gap, noting that it can take around 70 freight trains
to match the capacity of a single container ship.
Industry
representatives further pointed to operational bottlenecks, including customs delays
linked to multimodal logistics and the use of alternative corridors. These constraints,
combined with rising costs and route uncertainty, underscore the importance of investment
in improved port and logistics infrastructure globally to maintain efficient and
predictable trade flows.
The
industry executives emphasized the importance of respect for multilateral norms
and agreements, including the longstanding principle of freedom of navigation.
Director-General
Okonjo-Iweala emphasized the critical role of maritime
transport - which carries over 80 per cent of global trade by volume - and called
for strengthened cooperation between governments and the private sector. Addressing
industry concerns regarding customs delays, she stressed the importance of full
implementation of the WTO Trade Facilitation Agreement and other facilitation measures,
such as digitalization of customs procedures, timely information-sharing, and restraint
in the use of trade restrictions to support supply chain resilience and stability.
DG
Okonjo-Iweala encouraged the industry representatives
to continue engaging with the WTO Secretariat and other international organizations
to spotlight the increasing challenges they face.
Participants
in the meeting included senior executives from the shipping and logistics groups
MSC, CMA CGM, COSCO Shipping, Hapag-Lloyd, Ocean Network Express (ONE), Evergreen
Marine Corp., Yang Ming and China Merchants Energy Shipping (Singapore), as well
as the heads of the International Chamber of Shipping (ICS), the International Federation
of Freight Forwarders Associations (FIATA) and the World Shipping Council.