UNCTAD Multiyear Expert Meeting on Transport,

Trade Logistics and Trade Facilitation

21-23 November 2018, Geneva

“Sustainable freight transport in support

of the 2030 Agenda for Sustainable
Development”

Role of International Shipping

by

Hassiba Benamara
UNCTAD

This expert paper is reproduced by the UNCTAD secretariat in the form and language in which it has been received.
The views expressed are those of the author and do not necessarily reflect the views of the United Nations.
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Sustainable freight transport in support of the 2030 Agenda

for Sustainable Development

Hassiba Benamara
Economic Affairs Officer
Trade Logistics Branch

Shipping is the glue that holds the world economy together

 Connects countries, markets, businesses and people on a scale not otherwise possible
 Caters to the interconnectedness and interdependence of economies
 Moving assets (ships) across borders and fixed assets (ports) within borders

Source: Review of Maritime Transport 2017, various issues

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Role of shipping felt at different levels

Level 1
E.g. Trade by providing
freight transport
Role services

Level 2
E.g. Maritime clusters and business
such as ship building, ship repairs,
port services, insurance, towing,
dredging,
offshore support services, shipping
related financial and legal services, etc.

Level 3
E.g. Recreation, tourism,
fishing, etc.

Level 1 - Economic growth, merchandise trade and

demand for shipping services are closely interlinked

Trade, GDP and Maritime Trade

(Index 1990 = 100)

Source: Review of Maritime Transport , various issues

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 Maritime trade: Over 80% of global merchandise trade by

volume
 10,7 billion tonnes of cargo moved in 2017 (+4% over 2016),
with
a fleet of 94,169 ships
 Containerized trade: 148 million TEUs (1.8 billion tons in 2017)
Nexus
1 2 000
with globalized production, supply chains, manufactured and consumption goods

1 0 000 Container
8,1%
+3%

8 000
Other Dry Carg
2,2

6 000

Main Dry Bulks

4 000 4,6

2 000

Tanker Trade
1,4
0
1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
C o nt ai n e r 102 152 234 371 598 1 001 1 092 1 215 1 272 1 134 1 291 1 411 1 458 1 532 1 622 1 660 1 734 1 834
O t h e r d ry c argo 1 1 2 3 819 1 031 1 125 1 928 1 975 2 197 2 232 2 269 2 060 2 087 2 188 2 304 2 392 2 408 2 471 2 459 2 526
M a i n b u lks 608 900 988 1 105 1 295 1 711 1 713 1 840 1 946 2 022 2 259 2 392 2 594 2 761 2 988 2 961 3 041 3 196
Oil an d gas 1 871 1 459 1 755 2 050 2 163 2 422 2 698 2 747 2 742 2 642 2 772 2 794 2 841 2 829 2 825 2 932 3 055 3 146

Source: Review of Maritime Transport , 2018

Structure of world maritime trade, 2017

OT H E R C A RG O
Other Dry Cargo; Chemicals
8% 11%
3%

C O N TA I N ER Container 16% 16%

A G RI C U LT U R A Agricultural 10%
10%
L

Cocking Coal Other Steel Products

25%
M E TA L I N DU S T RY Iron Ore 13% 2%
3%
Ores 7%

EN E RG Y Crude 17%
Petroleum Products;
9%
Steam Coal
3%
Gas; 8% 37%

Source: UNCTAD based on RMT 2018 and Clarksons Research Services, SRO, 2018

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Maritime trade per capita, 2017

A milestone was reached in 2000
1,6

1,6 1,5

1,5 1,5
1,5
1,5
1,5
1,4

1,4 1,4

1,4
1,4

1,3

1,3
2011 2012 2013 2014 2015 2016 2017

UNCTAD based on data from STM, CRS, November 2018.

World maritime trade, by region, 2017

(% share in world tonnage)

Developing countries: 60% of goods loaded and 63% of goods unloaded

Source: Review of Maritime Transport 2018

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Participation of developing countries in maritime trade

Today:
Developing countries
participate in
globalized production.
They also import raw
materials and export
manufactured goods
Before:
Developing countries
exported large
volumes of raw
materials and
imported high value
(low volume)
manufactured goods

S
o
u
r
c
e
:

R
e
v

Maritime trade is expected to grow i

e
w

o
f

M
a
r
i
+6% Containerized Trade
t
i
m
e
+4,9% Dry Bulks
T
r
+1,7%
a Crude Oil
n
s
+2,6% Products & Gas
p
o
r
t

2
0
1
8

Source: Review of Maritime Transport 2018

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Level 2. Over and above its role of facilitating trade, shipping

contributes to maritime transport business such as ports

World container port

throughput by region,
2017 (% share in total TEU )

Volumes reached an estimated

752 million TEUs in 2017

Source: Review of Maritime Transport 2018

Level 2. Over and above its role of facilitating trade,

shipping contributes to maritime transport business such
as in connection with ships

1. 2. 3. 4. 5.
Building Owning Registration Operation Scrapping

6. Financing
7. Classification
8. Insurance services (P&I)
9. Seafarers
10. Container terminal operators

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Ship building
Over $240 billion in
2017*

Korea and China

71% of GT

1. 2. 3. 4. 5.
Building Owning Registration Operation Scrapping

6. Financing
7. Classification
8. Insurance services (P&I)
9. Seafarers
10. Container terminal operators

*: UNCTAD RMT 2018, based on data from CRS

Ship owning
$894 billion at 1 January
2018*

Greece, Japan,
China: 39% of dwt

1. 2. 3. 4. 5.
Building Owning Registration Operation Scrapping

6. Financing
7. Classification
8. Insurance services (P&I)
9. Seafarers
10. Container terminal operators

*: UNCTAD RMT 2018, based on data from WFM, CRS

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Ship
registration

Panama, Marshall
Islands, Liberia:
41% of dwt

1. 2. 3. 4. 5.
Building Owning Registration Operation Scrapping

6. Financing
7. Classification
8. Insurance services (P&I)
9. Seafarers
10. Container terminal operators

Ship
operations

Denmark and
Switzerland
~30%

4.
1. 2. 3. Operation 5.
Building Owning Registration Scrapping
(container
ships)

6. Financing
7. Classification
8. Insurance services (P&I)
9. Seafarers
10. Container terminal operators

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Ship demolition

India, Bangladesh,
China, Pakistan:
94%

1. 2. 3. 4. 5.
Building Owning Registration Operation Scrapping

6. Financing
7. Classification
8. Insurance services (P&I)
9. Seafarers
10. Container terminal operators

Financial, Insurance and Classification

Services

Financial and other

services:
UK, Scandinavia

1. 2. 3. 4. 5.
Building Owning Registration Operation Scrapping

6. Financing
7. Classification
8. Insurance services (P&I)
9. Seafarers
10. Container terminal operators

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Seafaring
Over 1 million
seafarers

Philippines,
Indonesia, …

1. 2. 3. 4. 5.
Building Owning Registration Operation Scrapping

6. Financing
7. Classification
8. Insurance services (P&I)
9. Seafarers
10. Container terminal operators

Port terminal
operations

Hong Kong,
Netherlands,
Singapore, UAE:
~ 30%

1. 2. 3. 4. 5.
Building Owning Registration Operation Scrapping

6. Financing
7. Classification
8. Insurance services (P&I)
9. Seafarers
10. Container terminal operators

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Level 3. Enables other sectors by acting as factor of

production

 Oceans Economy Concept. Above and below water

activities
 For example, cruise shipping and fisheries.
 SIDS/LOS

Source: Review of Maritime Transport 2018

In sum
 Shipping is a critical and strategic sector with different types of impacts:
1. Backbone of international trade, links supply chains, etc.
2. Engine of growth that creates wider economic benefits (maritime
business and clusters)
3. Enabler (input factor) of other sectors such as fisheries,
offshore, tourism.

 Developing countries are important players both as users and suppliers

of maritime transport services and are likely to intensify their contribution

 Demand for shipping services is set to grow driven by population growth

and economic activity

 However, increased shipping activity driven by economic growth and the

need to carry more trade raises concerns in connection with the sector’s
negative externalities and their potential to intensify if BAU is maintained
(e.g. environmental degradation, air emissions, etc.).

 Need to address unsustainable shipping patterns and decouple shipping

from its externalities. This calls for mainstreaming sustainability
principles.

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Thank you for your attention

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