Why Geopolitics Matters to the Global Shipping Industry

May 23, 2018 | 09:00 GMT

A picture shows a sprawling docklands stacked with shipping containers.

A decade after the global financial crash precipitated a crippling overcapacity crisis, the global shipping sector has been struggling to recover. 



  • The shipping sector is poised to make progress toward financial recovery in 2018, but uncertainty over trade and security relationships will be compounded by a variety of other constraints.
  • Rising fuel costs, the introduction of larger vessels and new environmental regulation standards could result in slower growth.
  • Even as Washington and Beijing reach a preliminary agreement on trade, the rest of the world's response to U.S. trade policy — amid continued uncertainty surrounding Iran — will serve as a downward force on shipping growth.

Global shipping is a behemoth of an industry. It has a direct and indirect economic impact of more than $400 billion annually, and more than $4 trillion worth of goods move by sea freight each year. But it's also a delicate sector, closely tied to the health of major economies, prone to cyclic swings and vulnerable to the world's reaction or overreaction to any number of political events....

Keep Reading

Register to read three free articles

Proceed to sign up

Register Now

Already have an account?

Sign In