Crucial Global Transport Industry Confronts Trade Turmoil

Crucial Global Transport Industry Confronts Global Trade Turmoil :

The global transport industry is facing an unprecedented challenge, warned Kim Young-tae, Secretary General of the International Transport Forum (ITF), today in Leipzig, Germany. Intensifying trade uncertainties, including escalating tariff wars and persistent geopolitical tensions, are forcing the industry to rapidly adapt or face significant disruptions. These factors are causing dramatic shifts in the types and volumes of goods being transported worldwide.

Speaking at the 2025 ITF Summit, Kim Young-tae emphasized that tariffs directly impact the supply and demand dynamics of various goods, such as automobiles, leading to a projected 1% drop in global container shipping volume in 2025, according to a Drewry consultancy report. Beyond tariffs, long-standing geopolitical tensions, notably in the Red Sea, continue to severely disrupt and restructure vital maritime trade routes, forcing rerouting and increasing shipping costs and transit times.

The summit, gathering transport leaders from over 80 countries, underscored the collective effort required to boost transport resilience against global shocks. Discussions also touched upon integrating AI into the private transport sector, with the ITF working on policy recommendations to guide its “safe” and “responsible” use globally.

For Shiv’s Assets Group, involved in the export of building materials, these developments are critical. Increased shipping costs, longer transit times due to Red Sea rerouting, and potential volume drops due to global trade protectionism directly impact profitability and delivery schedules. Adapting to these dynamic challenges will require robust logistics planning, exploring diversified shipping routes, and potentially leveraging new technologies to maintain efficiency and competitiveness in the face of overwhelming global uncertainties.