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Challenges in International Shipping Risks

This document discusses risks and challenges facing international shipping. It outlines geopolitical risks such as trade disputes and sanctions affecting countries like Iran. Economic risks are also discussed, like China's economic transition and the crisis in Venezuela. Environmental risks from the transition away from fossil fuels are mentioned. The document recommends that governments support economic trends and digital preparedness. It also recommends monitoring liner shipping concentration and developing infrastructure to support e-commerce.

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10 views17 pages

Challenges in International Shipping Risks

This document discusses risks and challenges facing international shipping. It outlines geopolitical risks such as trade disputes and sanctions affecting countries like Iran. Economic risks are also discussed, like China's economic transition and the crisis in Venezuela. Environmental risks from the transition away from fossil fuels are mentioned. The document recommends that governments support economic trends and digital preparedness. It also recommends monitoring liner shipping concentration and developing infrastructure to support e-commerce.

Uploaded by

shreya
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Overview of Issues related to

International Shipping
Module 004
Capt Sarabjit Butalia MSc FNI IMOMA
9th May 2020
butaliasarabjit@[Link]
Group Discussion

• Discuss risks and challenges associated with


International Shipping
Group Discussion

• Discuss impact of Belt road initiative on global


trade and International logistics
World Seaborne Risks
• Trade policy risks linked to the decision by the
United Kingdom of Great Britain and Northern
Ireland to leave the European Union.
World Seaborne Risks
• Concerns relate to the increasing number of
trade disputes that have been raised at the
World Trade Organization, regarding for
example, Australia, Canada, China, India,
Pakistan, the Republic of Korea, the Russian
Federation, Ukraine, the United Arab
Emirates, the United States and Viet Nam.
World Seaborne Trade Risks
• Withdrawal of the United States from the
Joint Comprehensive Plan of Action and the
re-imposing of international sanctions on the
Islamic Republic of Iran.
World Seaborne Trade Risks

• Deterioration of the economic crisis in the


Bolivarian Republic of Venezuela and related
implications for tanker trade and other sectors
World Seaborne Trade Risks
• The gradual transition of China towards a
more diversified economy and its efforts to
reduce industrial overcapacity and improve air
quality
World Seaborne Trade Risks
• Structural forces, including the slower pace of
trade liberalization, as well as global value
chain integration
World Seaborne Trade Risks

• Although beneficial for sustainability


objectives, the transition of the global
economy towards a less fossil fuel-intensive
growth model entails some uncertainty for oil,
gas and coal trades
World Seaborne Trade Risks

• Potentially unintended negative impacts of


emerging technologies such as three-
dimensional printing and robotics may cancel
out the positive gains for maritime trade.
Recommendations

• Governments have a role to play by


supporting the current positive economic
trends and promoting a self-sustaining global
economic recovery.
Recommendations
• Relevant regulatory authorities, maritime
transport analysts, as well as development
entities such as UNCTAD need to regularly
monitor market concentration trends in liner
shipping and assess potential implications in
terms of market power, freight rates,
surcharges and other costs to shippers and
trade
Recommendations
• Governments, in collaboration with the
shipping industry, the private sector, and the
trade and business community need to build
digital preparedness and promote greater
uptake of relevant technologies
Recommendations

• All stakeholders, including Governments, need


to work together and support the
development of transportation and supply
chain infrastructure and services tailored for
e-commerce.
Geographical Shift of Trade to Asia

• What is its impact on Shipping and Logistics?


THANKYOU

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