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Asia is the best-connected to worldwide shipping networks, according to the UN Trade and Development Review of Maritime Transport 2024
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Asian economies led by China retained their top spots on the global Liner Shipping Connectivity Index
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But in an increasingly interconnected world, geopolitical tensions and impacts of climate change have global repercussions, including in Asia
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In terms of shipbuilding, China, Japan, and South Korea remained the dominant players, accounting for some 95% of global output
Asia is still the region best-connected to global shipping networks, according to the UN Trade and Development (UNCTAD) Review of Maritime Transport 2024 released this week.
But in an increasingly interconnected world, geopolitical tensions and impacts of climate change have global repercussions, including in Asia, the report noted.
It said Asian economies led by China retained their top spots on the global Liner Shipping Connectivity Index, followed by South Korea and Singapore. The Index was first introduced in 2004, computed by UNCTAD, and is based on maritime transport sector components like ship size, deployed capacity, number of service providers, and weekly calls.
Vietnam posted the highest long-term increase of 199% in connectivity since 2006.
The report showed that in 2023, main maritime waterways connecting the East and West accounted for at least 36% of global containerized trade, including routes from East Asia to North America, Northern Europe and the Mediterranean.
On the other hand, South-South routes linking the developing world of East and Western Asia, Oceania, Sub-Saharan Africa and Latin America, achieved the highest increase (+9.3%) in its volume of global containerized trade in 2023.
In terms of shipbuilding, China, Japan, and South Korea remained the dominant players, accounting for some 95% of global output. In 2023, China delivered more than half of the world’s new ships last year.
Disruptions in the world’s trade routes remained an issue posing challenges, including Asia.
The ongoing Red Sea conflict has seriously affected shipping in the Suez Canal, and caused congestion – already a growing problem of late — in major ports in Asia, the report said.
Between March and May, this year, waiting times in Singapore nearly doubled, from 24 to 40 hours, while in Port Klang, Malaysia, it rose from 20 to 26 hours.
Global warming also caused the water level in the Panama Canal to drop last year, leading to shipment delays and higher costs. Trade routes exporting grains and minor bulk commodities from the Americas to Asia were impacted, resulting in a 31% rise in sailing distances and a 25% drop in cargo volume.
In terms of sector, technology exports from Asia are expected to drive further recovery in global merchandise trade. Covered are green energy and artificial intelligence-related products.
Iron ore trade is also seen to experience steady growth, while global gas trade is likewise expected to rise, both due to rising demand from Asia.
READ: Maritime trade to grow 2% in 2024, less than 2023’s 2.4%
