Shipping Industry Cites Mounting Cost and Capacity Pressures Amid Global Trade Disruptions

Global shipping executives and the World Trade Organization recently convened to address escalating capacity constraints and rising operational costs that are currently straining international transport networks. The industry highlighted that alternative land-based routes are reaching saturation points, making it increasingly difficult and expensive to divert cargo away from maritime channels. These discussions underscore the vital importance of the shipping sector, which facilitates over 80 percent of global trade volume, and the urgent need for infrastructure investment to maintain stable supply chains.

During a high-level meeting with WTO Director-General Ngozi Okonjo-Iweala, senior executives from major carriers including MSC, CMA CGM, COSCO Shipping, Hapag-Lloyd, and Ocean Network Express (ONE) reported that tightening capacity constraints are creating serious operational hurdles. Industry representatives noted that while they are adapting through innovation, the saturation of alternative ports and land routes presents significant limitations. One executive highlighted the massive scale gap in logistics, pointing out that it takes approximately 70 freight trains to match the cargo capacity of a single container ship, which complicates efforts to mitigate maritime disruptions through multimodal shifts.

The industry further identified critical operational bottlenecks, such as customs delays linked to the use of alternative corridors and complex multimodal logistics. These constraints, combined with rising costs and general route uncertainty, have led to calls for increased global investment in port and logistics infrastructure to ensure predictable trade flows. Executives from companies like Evergreen Marine Corp., Yang Ming, and China Merchants Energy Shipping also emphasized the necessity of respecting multilateral norms and the longstanding principle of freedom of navigation to protect global commerce.

Director-General Okonjo-Iweala responded by stressing the critical role of maritime transport and calling for strengthened cooperation between governments and the private sector. She advocated for the full implementation of the WTO Trade Facilitation Agreement, specifically highlighting the need for the digitalization of customs procedures and timely information-sharing to reduce delays. To support supply chain resilience, she urged restraint in the use of trade restrictions and encouraged continued engagement between the WTO and industry bodies such as the International Chamber of Shipping (ICS), FIATA, and the World Shipping Council.