The World Trade Organisation (WTO) has suggested that continued conflict around the Strait of Hormuz in the Middle East has driven supply chain uncertainty.
At a May meeting, senior executives from leading global shipping companies and industry groups met to discuss the ongoing issues.
They noted that, while global supply chains have demonstrated resilience, efforts to identify and rely on alternative maritime routes amid disruptions – particularly in the Gulf region and other chokepoints – are driving up costs for shippers and ultimately consumers.
Additionally, alternative land-based routes and ports were noted to be oversaturated, ensuring that shifting further cargo away from maritime routes would impose spiralling costs on operators.
The news follows the release of International Air Transport Association (IATA) data for April 2026 indicating a decrease in global passenger demand.
Commenting on the decreasing trend, IATA director general, Willie Walsh, said: “The 46.6% fall in demand for carriers in the Middle East due to war in the region was so acute that it dragged overall demand down -3.4%.
“The situation for air transport remains highly volatile. The cost of jet fuel more than doubled in April, which is pushing airfares up.
“Forward schedule data is showing a reduced offering in the coming months, indicating that airlines are balancing high fuel costs and weaker demand.”
WTO meeting participants included senior executives from the shipping and logistics groups MSC, CMA CGM, COSCO Shipping, Hapag-Lloyd, Ocean Network Express, Evergreen Marine Corp., Yang Ming and China Merchants Energy Shipping.
This was in addition to the heads of the International Chamber of Shipping (ICS), the International Federation of Freight Forwarders Associations (FIATA) and the World Shipping Council.
Collectively, they emphasised the importance of respect for multilateral norms and agreements, including the longstanding principle of freedom of navigation.
In conclusion, WTO director-general Okonjo-Iweala emphasised the critical role of maritime transport – which carries over 80% of global trade by volume – and called for strengthened cooperation between governments and the private sector.
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