Key Highlights

  • The Consultative Shipping Group, representing maritime authorities from 18 shipping nations, warned that emerging "parallel systems" threaten to create a two-tier structure in global shipping.
  • More than 80% of global trade is transported by sea, with the group warning that without maritime trade, Supply chains would fragment and the global economy would come to a sudden halt.
  • The group pointed to an unregulated shadow fleet of hundreds of ships operating outside standard insurance, safety and transparency frameworks as a key driver of fragmentation.
  • The CSG cited the closure of the Strait of Hormuz as a clear example of how fragmenting shipping supply chains fragment the global economy.

A Warning Over a Fracturing Maritime System

Global 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, 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, the group said, supply chains would fragment and the global economy as it is known today would come to a sudden halt.

Repeated Disruptions Have Strained Global Supply Chains

The CSG warned that maritime supply chains have faced repeated disruptions that raise uncertainty and add friction to global supply chain efficiency, pointing to events including the Covid-19 pandemic, the war in Ukraine, drought in the Panama Canal, and the US-Iran war. Conflict in the Middle East has created a major bottleneck in global shipping this year due to blockades and fighting in and around the Strait of Hormuz, a critical waterway south of Iran, driving up prices for oil and other commodities such as fertilizers.

The group warned Tuesday that discriminatory trade measures reinforce the effects of these disruptions on maritime navigation. Global shipping works best when rules are clear and consistent worldwide, the coalition said, noting that uncertainty about future access to ports or routes can affect long-term commercial planning. When countries pursue diverging approaches, regional initiatives or stalled multilateral processes weaken the coherence of the system, the group said, warning that fragmentation in rules leads directly to fragmentation in markets and ultimately to higher costs for businesses and consumers.

A Structural Shift, Not a Temporary Shock

CSG members include the maritime authorities of Germany, Canada, Japan, the UK, Denmark and South Korea, among others. The group said Tuesday that geopolitical pressures on shipping are not episodic shocks, but signals of a structural shift in the operating environment of global trade.

Shipping routes are increasingly instruments of Leverage and risk, the group said, adding that sovereignty, resilience and prosperity rely on partnerships and practical cooperation to preserve an open global trade system.

The Rise of an Unregulated Shadow Fleet

The CSG warned that an increasing number of vessels are now engaging in operations that circumvent sanctions, describing an unregulated shadow fleet of hundreds of ships operating outside standard insurance, safety and transparency frameworks as a further source of fragmentation in global supply chains.

This creates parallel systems within global shipping, increases risk, and bypasses environmental and safety standards, undermining trust and predictability in maritime markets, the CSG said. The result, the group said, is a two-tier system, one governed by rules and the other by opacity, ultimately weakening both.

A Call for Coordinated Enforcement

The group called on maritime nations to actively support and uphold the core principles governing shipping, saying existing international rules need to be enforced across jurisdictions, alongside political support for developing and upholding common standards. Strong international cooperation is not a constraint on sovereignty, the CSG said, but a prerequisite for effective governance in an interconnected world.

A Direct Warning Tied to the Strait of Hormuz

Allowing fragmentation to deepen undermines the global rules-based maritime framework and increases the risk of disruptions at key maritime chokepoints, the group added. As the closure of the Strait of Hormuz demonstrates, the CSG said, when shipping supply chains fragment, the global economy fragments with it.

A Test for International Cooperation

With the shadow fleet expanding and geopolitical pressures on shipping routes showing no signs of easing, the CSG's warning underscores how enforcement gaps and diverging national approaches could compound the disruptions already reshaping global trade. Whether maritime nations move toward the coordinated standards the group is calling for, or continue along a more fragmented path, will likely shape the resilience of global supply chains in the years ahead.