Global shipping authorities warn of maritime trade breakdown amid geopolitical turmoil

Vessels transit the Strait of Hormuz off Bandar Abbas in southern Iran on August 10, 2026. Atta Kenare | Afp | Getty ImagesGlobal maritime authorities have warned that the emergence of "parallel systems" threatens to create a two-tier structure in international shipping that undermines trust and safety at sea. In a joint statement issued Tuesday, the Consultative Shipping Group (CSG) — an informal cooperation between the maritime bodies of 18 shipping nations across the globe — noted that more than 80% of global trade is transported by sea. "Without maritime trade, supply chains would fragment and the global economy as we know it would come to a sudden halt," the group said. It warned that maritime supply chains have faced repeated disruptions that "raise uncertainty and add friction to global supply chain efficiency," pointing to events like the Covid-19 pandemic, the war in Ukraine, drought in the Panama Canal, and the U.S.-Iran war. Conflict in the Middle East has created a major bottleneck in global shipping this year thanks to blockades and fighting in and around the critical Strait of Hormuz, a waterway south of Iran. Prices of oil and other commodities, like fertilizers, hav...