Maritime transport is facing unprecedented challenges as vessel rerouting, volatile freight rates, and shifting trade patterns redefine the global shipping landscape, according to the newly released Review of Maritime Transport 2025 by the United Nations Conference on Trade and Development (UNCTAD).
Longer Routes, Higher Costs, and Emissions
Ships that once crossed the Red Sea in days are now sailing weeks around the Cape of Good Hope. This rerouting pushed global shipping distances up by 5.9% in 2024, nearly triple the growth in cargo volumes. The longer journeys have raised costs, reduced effective fleet capacity, and increased emissions, placing added pressure on developing countries already struggling with supply chain uncertainty.
Container shipping was hit hardest. Spot and charter rates climbed close to pandemic-era peaks by mid-2024 before easing, though they remain far higher than pre-crisis levels. Dry bulk rates surged on coal, grain, and fertilizer demand, while tanker markets showed sharp volatility, spiking in June 2025 due to geopolitical risks.
Fleet Status and Control
By January 2025, the world fleet numbered 112,500 vessels with a combined 2.44 billion deadweight tons. More than 40% of capacity is controlled by Greece, China, and Japan. Nearly half of all ships are registered under three major flag states: Liberia, Panama, and the Marshall Islands.
Fleet renewal and recycling remain central concerns. The Hong Kong Convention on ship recycling entered into force in June 2025, setting new safety and environmental standards. Meanwhile, the International Maritime Organization (IMO) is drafting a code for autonomous ship operations, expected in 2026.
Decarbonization and Alternative Fuels
While alternative fuel vessels now account for more than half of new tonnage orders, over 90% of the active fleet still runs on conventional fuels. This gap underscores the challenge of transitioning toward low-carbon shipping. European Union emissions pricing has already begun affecting fleet choices, competitiveness, and transport costs.
Expanding the use of LNG and other alternative fuels introduces safety concerns. Adequate international rules on liability and compensation are under review at the IMO, with developing countries seeking stronger protections.
Energy and Minerals Trade Shifts
Maritime energy flows are being reshaped by diversification strategies and geopolitical shifts. Coal shipments rose despite long-term decline trends, oil trade stayed flat but moved via longer routes, and gas demand grew. At the same time, critical minerals trade is expanding rapidly, creating both opportunities and risks for carriers and ports.
Ports Under Pressure
Port disruption is becoming chronic, with climate change and infrastructure limitations compounding the strain. By 2024, around 200 ports worldwide had LNG bunkering facilities, signaling early adaptation for the energy transition.
UNCTAD’s Liner Shipping Connectivity Index shows Asia maintaining its lead, while Africa improved connectivity by 10% between June 2024 and June 2025. Digital tools such as trade single windows and port community platforms are helping improve efficiency, but adoption remains uneven.
Workforce and Inclusiveness
The maritime sector depends on its 1.9 million seafarers, most of whom are from developing countries. Despite progress with amendments to the Maritime Labour Convention, rights enforcement remains inconsistent. Diversity within the workforce is limited, though digitalization and automation could open doors if coupled with inclusive training.
Priority Actions Identified
The Review of Maritime Transport 2025 calls for coordinated action among governments, industry stakeholders, and international organizations. Key priorities include fleet modernization, reducing greenhouse gas emissions, strengthening port performance, safeguarding seafarer rights, preparing for alternative fuels, addressing cyber-risks, and supporting developing economies through capacity-building and investment mobilization.
