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Recent Global Conflicts Impacting Shipping Supply Chains

Recent Global Conflicts Impacting Shipping Supply Chains

06/10/2024
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Recent Global Conflicts Impacting Shipping Supply Chains

by Daisy D.
06/10/2024
in Security & Risk

Disruptions in shipping supply chains are being observed globally due to ongoing conflicts, including those in Gaza, attacks on ships by Houthi militias, and Russia’s invasion of Ukraine. However, these are not the sole tension points affecting global sea lanes.

Southeast Asian waters, historically considered among the world’s most dangerous maritime areas, have seen progress in recent decades. Despite improvements, concerns persist regarding criminal threats such as piracy, armed robbery, and terrorism, which have exploited governance gaps in congested waters.

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At the turn of the century, Southeast Asia faced significant challenges with piracy and armed robbery rates being the highest globally. Terrorism and violent extremism also posed regional threats, often spilling into the maritime domain. In 2005, the Malacca Strait was deemed at risk by the Lloyd’s insurance market due to various perils including war and terrorism.

In response, Southeast Asian coastal states recognized the need for enhanced maritime security measures, prioritizing policy actions and allocating more resources to maritime law enforcement. This led to the establishment of regional coastguards and collaboration frameworks, such as trilateral coordinated patrols and international agreements on combating piracy.

International efforts, including the implementation of the International Port and Security Code post-9/11, further bolstered maritime security measures. Collaborative initiatives like the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships (ReCAAP) and the Information Fusion Center in Singapore contributed to a significant decrease in pirate attacks and violent incidents over the years.

However, evolving technology and emerging cyber threats pose new challenges to maritime security. Criminals now have access to advanced maritime awareness data and utilize technologies like Automatic Identification Systems and smartphone applications for their activities.

As regional geopolitics witness increased competition among great powers, cooperation within Southeast Asia becomes more challenging. Recent tensions have hindered collaborative efforts, exemplified by ASEAN’s cautious approach to maritime cooperation in the South China Sea to avoid potential conflicts.

While efforts to maintain maritime security continue, navigating geopolitical complexities and emerging threats remains a priority for the global shipping industry.

Discover comprehensive supply chain report news insights at The Supply Chain Report. For international trade resources, visit ADAMftd.com.

#GlobalShippingDisruptions #ConflictShippingChallenges #GlobalTradeTensions #ShippingSupplyDisruptions#SupplyChainNews

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