As 2024 casts its twilight over the horizon, I reflect on the year that 2024 has been for the shipping and freight industry..
It was a year filled with new and continued disruptions, innovations, and bold strides in areas like digitalisation and sustainability.. A year where technology, digitalisation, collaboration, and resilience shaped the narrative setting just the right stage for Twenty Twenty Thrive (2025)..
In 2024, geo-political events had the most effect on the global trade ecosystem creating waves (pun intended) with the Red Sea situation affecting quite a bit of it..
This unprecedented geo-political issue has heavily impacted passage through the Suez Canal in 2024.. As per UNCTAD, Suez Canal transits plunged to 33 transits per day dropping by 57% from their peak, with traffic levels about 4% above the lowest recorded four-week average..
While the Suez Canal suffered, the Red Sea crisis resulted in a massive surge of ships – around 89% – being rerouted around the Cape of Good Hope in Africa..
This of course increased schedule delays, carbon emissions, and shipping costs including approx $400,000 in additional emissions costs per 20,000–24,000 TEU ship on the Far East-Europe route under EU’s Emissions Trading System (ETS)..
This diversion continues to increase fuel consumption, port congestion, crew wages, and insurance premiums, further straining global supply chains..
While the situation with Panama Canal traffic due to water restrictions in the Gatun Lake is showing signs of recovery, the 30 transits per day (4 week average) as of Oct 2024 was 30% below the previous peak and only 4% lower than in 2023.. This volume was already 40% above the lowest level of transits recorded in early 2024..
These major disruptions led to a 4.2% rise in global ton-miles and increased demand for container ships by 12% as each container service rerouting around Cape of Good Hope needs an additional 12-14 days in transit which means carriers have to add in additional ships leading to a capacity crunch..
Major port hubs like Singapore and key Mediterranean ports struggled to handle the surge in transshipment needs, adding to global delays while energy supplies also faced risks as vital routes for oil, gas, and other commodities were affected, highlighting the urgent need for resilient infrastructure..
Digital transformation driven by digitalisation and technology became a recurring theme throughout the year, as stakeholders adopted technologies that brought visibility and efficiency to the supply chain.
The role of standards in shipping, championed by organisations like the Digital Container Shipping Association (DCSA) and ICC’s Digital Standards Initiative (KTDDE) proved invaluable.. Whether through track-and-trace systems, container visibility, or standardised trade documentation, the industry is inching closer to a seamless digital future..
On the digital front, one of the key events was the passing of the Electronic Trade Documents Act on the 20th of September 2023 in the United Kingdom..
The Electronic Trade Documents Act, a game-changing regulation that accords electronic trade documents the same legal weight and rights as their paper counterpart, possesses immense potential..
With this law coming into effect, there is no legal requirement to handle commercial trade documents such as bills of lading, bills of exchange, promissory notes, warehouse receipts, and marine insurance documents only on paper and can also be handled in electronic format in jurisdictions that follow English Law..
English law is often the favored legal regime adopted by ship owners, charterers, shipping lines and customers to govern international commercial contracts..
Many countries like France have followed suit in adopting MLETR in 2024 and many more are expected to do the same in 2025..
Regional cooperation for example, trade agreements like the AfCFTA has also become a key driver especially in growing economies with major trading countries in Africa like South Africa handling their first shipment under AfCFTA in 2024..
The integration of ESG principles into operational strategies highlighted the industry’s commitment to a sustainable future including discussions and action on the ESG regeneration revolution to advancements in DEI (Diversity, Equity, and Inclusion)..
The focus on continuous improvement, collaboration, and technological adoption promises to redefine shipping and freight in the coming years..
Wishes
As 2024 draws to a close let us take a moment to reflect on the milestones we’ve achieved together as an industry, the challenges we’ve navigated, and the insights we’ve shared across the dynamic global trade ecosystem..
In 2024 we grew as a community of industry professionals and enthusiasts, fostering meaningful discussions, exchanging valuable knowledge, and exploring groundbreaking developments..
To our valued readers and subscribers, THANK YOU for being an integral part of this journey.. Your engagement fuels our mission to connect, educate, and inspire..
Looking towards 2025, we strengthen our dedication and commitment to providing high-value, actionable insights that help you thrive in the global trade ecosystem with expertise, authority, and trust..
From educational resources and market intelligence to updates on digitalisation, cutting-edge technologies, and key industry trends, we remain your go-to source for information that truly matters..
To all stakeholders—shippers, freight forwarders, carriers, and logistics professionals—your resilience, ingenuity, and dedication have paved the way for a brighter future.. Let us make 2025 a year of progress, collaboration, and shared success..
Here’s to smooth sailings, efficient operations, and transformative growth in the year ahead.. Fair Winds and Following Seas..
Happy Twenty Twenty Thrive 🌟
