Boost supply chain investment: UN

Its flagship ‘Review of Maritime Transport 2022’ highlights how ports, shipping fleets and hinterland connections need to be better prepared for future global crises, climate change and the transition to low-carbon energy.

The supply chain crisis of the last two years has shown that a mismatch between demand and supply of maritime logistics capacity leads to surges in freight rates, congestion, and critical interruptions to global value chains.

“We need to learn from the current supply chain crisis and prepare better for future challenges and transitions,” said UNCTAD Secretary-General Rebeca Grynspan. “This includes enhancing intermodal infrastructure, fleet renewal and improving port performance and trade facilitation.

Ships carry over 80% of the goods traded globally, with the percentage even higher for most developing countries, hence the urgent need to boost resilience to shocks that disrupt supply chains and affect the poorest the most, says the UNCTAD.

In particular the review calls for investment in maritime transport systems to strengthen global supply chains and to cut carbon emissions.

The UNCTAD also calls on competition and port authorities to work together to protect competition and urges stronger international cooperation on cross-border, anticompetitive practices in maritime transport, based on the UN Set of Competition Rules and Principles.