A two-tier shipping system is forming
The CSG notes that more than 80 percent of global trade moves by sea from electronics and clothing to grain, metals, oil, and gas. Disruptions to that system, whether from geopolitical conflict, climate events, or regulatory evasion, carry direct implications for the cost and availability of goods that companies depend on and consumers purchase.
The statement points to a specific structural threat from the expansion of what it calls an unregulated shadow fleet; hundreds of vessels operating outside standard insurance, safety, and transparency frameworks, circumventing sanctions and creating parallel systems within global shipping that bypass environmental and safety standards, undermining trust and predictability in maritime markets.
The result, the group warns, is a two-tier market. One tier is governed by recognized international rules; the other operates in opacity. The group cautioned that this parallel system “increases risk” and weakens the standards and trust that the broader maritime market depends on.
Advisors managing portfolios with exposure to energy, industrials, or consumer discretionary sectors have already felt this tension.
War risk insurance is adding as much as $8 to the price of a barrel of crude oil amid the Iran conflict, according to David Osler, law and insurance editor at shipping news outlet Lloyd’s List, as reported by Insurance Business.