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Shipping industry struggling: UN

Shipping industry struggling: UN article image
Struck by overcapacity and lower productivity, the shipping industry has struggled to cope with the global economic downturn, according to the United Nations Conference on Trade and Development (UNCTAD). A rise in piracy and environmental effort to reduce carbon emissions from carriers has also caused some concern. An UNCTAD statement noted: "As the world's shipping capacity continues to increase even during the economic downturn, the industry finds itself confronted with a surge of oversupply and tumbling charter and freight rates." A reduction in world trade has also compounded the problem. "The fundamental reason for the decline in average productivity in recent years is the oversupply of tonnage available, which contrasts with the reduced growth in world seaborne trade," according to UNCTAD.

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