Shipping sector’s growth to slow down due to global economic woes

The shipping sector’s growth is set to slow down next year as global economic and geopolitical woes impact trading. 

According to research published today by UN agency UNCTAD, the industry’s expected growth will slump to 1.4 per cent this year – 1.8 per cent down on 2021 levels. 

While for the wider 2023-2027 period, trade will expand at the annual rate of 2.1 per cent – 1.2 per cent slower than the average for the last thirty years. 

“The recovery in maritime transport and logistics is now at risk from the war in Ukraine, the continued grip of the pandemic, lingering supply-chain constraints, and China’s cooling economy and zero-Covid policy, along with inflationary pressures and the cost-of-living squeeze,” UNCTAD said in the report. 

The agency has called on governments to keep trade flowing amidst economic uncertainties as well build the industry’s resilience through multilateral cooperation.