Shipping Nations Warn Global Trade Is Fracturing

Shipping Nations Warn Global Trade Is Fracturing — And Everyone Pays By Laura Curtis Sep 9, 2026 (Bloomberg) –The armed conflicts, trade wars, and extreme weather events hammering maritime supply chains are not one-offs, but rather signs of a “structural shift” for global trade, 18 of the most important shipping nations warned on Tuesday. “Shipping routes are increasingly instruments of leverage and risk,” said the Consultative Shipping Group, whose members include the UK, Germany, South Korea, Canada and Singapore, said in a rare joint statement published by Denmark’s maritime authority. The Strait of Hormuz, which Iran effectively shuttered after the US and Israel launched strikes against it in February, is a stark example of the global consequences of a regional conflict. Meanwhile, disruptions from the Covid pandemic to Russia’s war in Ukraine show how fragile the global supply chain can be. The Iran war has pushed up oil, fuel and natural gas prices, stoking global inflation. President Donald Trump’s administration has been under pressure to end the conflict, at times declaring the Strait of Hormuz clear of mines and offering US Naval escorts to transiting vessels. “Allowing fragmentation to deepen, undermines the global rules-based maritime framework and increases the risk of disruptions at key maritime chokepoints,” the group wrote. “As the closure of the Strait of Hormuz demonstrates: When shipping supply chains fragment, the global economy fragments with it.” One industry executive with knowledge of the situation said he was not confident enough to send vessels through even under US escort, because the danger of an attack by drone, for example, was still too great. He said last week that US officials had privately advised vessels to wait before attempting to exit the Persian Gulf. While the message didn’t mention either China or the US by name, the world’s two biggest naval powers have contributed to the fragmentation and rise in tensions the letter references. Trump’s trade war, which has embroiled China and nearly every other US trading partner, is proving a stress on international commerce, 80% of which is transported by sea. Meanwhile China has aggressively moved in recent years to increase its military presence in the South China Sea, much of which it claims despite the objections of surrounding nations in southeast Asia. The two economic heavyweights have been at odds in recent years, including in the seas. The US is toughening its the rhetoric against China with calls to boost domestic demand and reduce reliance on exports for growth, just before Chinese President Xi Jinping is scheduled to meet Trump in Washington later this month. Read More: China’s Exports Lifted by AI as Trade Surplus Nears $806 Billion The two sides have maintained a fragile tariff truce over the last year that’s set to expire in November. If the truce isn’t extended, higher tariffs and other trade restrictions could return — including hefty fees for Chinese-made and Chinese-owned ships calling at US ports that caused panic across the shipping industry when they were proposed, and briefly in place, last year. “Uncertainty about future access to ports or routes can affect long-term commercial planning. When countries begin to pursue diverging approaches, regional initiatives or stalled multilateral processes weaken the coherence of the system.” More widely, the increasing use of economic pressure as a leverage tool is effectively fragmenting the global shipping industry, the group warned. That division ultimately leads to higher costs for businesses and consumers, as well as greater commercial and environmental risk. A rising number of vessels — “hundreds of ships” — are now circumventing sanctions by operating outside of standard insurance, safety and transparency frameworks, the group said. Read more: The Iran War Is Pushing the Global Gas Trade Into the Shadows “The result is a two-tier system, one governed by rules, the other by opacity, ultimately weakening both.” The Consultative Shipping Group called for consistent enforcement of international rules across jurisdictions, which requires transparency and information sharing between relevant authorities. “We call on all maritime nations to actively support and uphold the core principles governing shipping, from freedom of navigation to the international legal frameworks governed by multilateral institutions such as the IMO,” the statement said, referring to the United Nations International Maritime Organization. © 2026 Bloomberg L.P. Subscribe for Daily Maritime Insights Sign up for gCaptain’s newsletter and never miss an update — trusted by our 107,379 members Get The Industry’s Go-To News Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news