UNCTAD Review of Maritime Transport 2020 that was released
ON 12th November 2020 estimates that the Global maritime trade will
plunge by 4.1% in 2020 due to the unprecedented disruption caused by COVID-19. The report warns that new waves of the pandemic that further
disrupt supply chains and economies might cause a steeper decline. The pandemic
has sent shockwaves through supply chains, shipping networks, and ports,
leading to plummeting cargo volumes and foiling growth prospects.
The UNCTAD Secretary-General Dr. Mukhisa Kituyi stated that the global shipping industry will be at the forefront of efforts towards a sustainable
recovery, as a vital enabler of the smooth functioning of international supply
chains. UNCTAD expects maritime trade growth to return to positive
territory and expand by 4.8% in 2021, assuming world economic output recovers.
But it highlights the need for the maritime transport industry to brace for
change and be well prepared for a transformed post-COVID-19 world.
To cope with pandemic-related disruptions, players in the maritime sector were forced to adjust their operations, finances, sanitary, and
safety protocols as well as working practices and procedures. Besides, several governments,
through their border agencies, port authorities, and customs administrations,
made reforms to keep trade flowing while keeping people safe.
The pandemic may have a long time effect on globalization,
it has brought a sharp focus on the topic of supply chain shortening including
nearshoring and reshoring with less dependence on just-in-time and lean
inventory models. It thus brings back the concept of building strong regional
economic blocks.
The COVID-19 has also exposed how unprepared the world
seemed to be in the face of such a crisis, the report observes, underscoring
the urgent need to invest in risk management and emergency response
preparedness in transport and logistics.
UNCTAD’s director of technology and logistics, Shamika N.
Sirimanne, said the pandemic should not push to the back burner action to
combat climate change in shipping. Therefore, post-COVID-19 recovery policies
should support further progress towards green solutions and sustainability.
She further stated that the momentum of current efforts to
address carbon emissions from shipping and the ongoing energy transition away
from fossil fuels should be maintained.
The pandemic has harnessed the digital transformation and
elimination of paperwork in the shipping industry, including in
ports, the report observes, reinforcing the need for standards and
interoperability in electronic documentation.
Many trade facilitation measures taken during the pandemic
require further investments in digitalization and automation. Accepting digital
copies instead of paper originals, pre-arrival processing, electronic payments,
and customs automation all help speed up international trade. In line with this
Intergovernmental Standing Committee on Shipping-ISCOS introduced a mobile-based
trade facilitation platform dubbed ISCOS
Shipplinc for reporting and monitoring NTBs and other incidences that are likely
to be encountered by shippers while moving their cargoes.
The platform came at a time when social distance was
becoming a norm, physical offices were turning virtual but cargo movement red
tapes were on the rise. It has enabled several shippers to report various
agencies causing them delays at the comfort of their locations.