UNCTAD’s Review Of Maritime Transport 2023
UNCTAD Report: Navigating Africa’s Maritime Dynamics
The United Nations Conference on Trade and Development (UNCTAD) recently released its Review of Maritime Transport 2023, shedding light on key developments in Africa’s maritime sector with potential implications on the ship chandling industry.
The report emphasises the significant impact of the African Continental Free Trade Area (AfCFTA) Agreement, projecting a 28% surge in intra-African freight and a 62% increase in demand for maritime freight. This foreseen growth necessitates substantial investments in transport infrastructure, including the addition of 100 vessels, creating opportunities for a green economic recovery.
Noteworthy shifts in trade patterns are highlighted, such as a decline of 14.9% in grain imports from Ukraine to Africa in 2022, prompting adaptation in trading strategies. Amid the Ukraine war, Egypt and Ethiopia diversified wheat sources, showcasing the adaptability of African nations to geopolitical challenges.
On the shipping fleet dynamic front, Liberia emerged as the world’s largest flag state in terms of dead weight tonnage, surpassing Panama. Liberia’s shipping fleet recorded impressive growth, both in tonnage and vessel numbers. Nigeria, ranking 33rd globally, leads as Africa’s largest ship-owning country. However, the report raises concerns about carbon emissions, as Liberia, Panama, and the Marshall Islands collectively contribute over a third of global shipping emissions.
According to the report, GHG emissions from international shipping were 20% higher in 2023 compared to a decade ago. Complicating matters is an ageing world fleet that runs almost exclusively on fossil fuels. Without action, emissions could reach 130% of their 2008 levels by 2050. This emphasises the need for system-wide collaboration, swift regulatory intervention and stronger investments in green technologies and fleets.
Shifting the focus to maritime transport performance, the Liner Shipping Connectivity Index for Africa increased in 2022 but remained below pre-pandemic levels. Trade facilitation gained traction through interconnected customs systems in West Africa and harmonised trade regimes in the East African Community (EAC). Notably, policy reforms in the EAC resulted in substantial reductions in cargo transit times and transport costs.
To sustain resilience against future challenges, the report suggests that the maritime industry needs to speed up efforts to accelerate decarbonisation. It also highlights the importance of improving the efficiency of ports and adopting new technologies, while focusing on the needs of developing economies.
As Africa undergoes transformative shifts in maritime trade, the ship chandling industry stands at the forefront of these changes. Contact us to stay informed on the most recent developments in the sector, and learn more about our ship chandling services.
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