Key Points

The global transport industry is experiencing significant transformations driven by escalating trade tensions and protectionist policies. Kim Young-tae from the International Transport Forum highlights how tariffs and geopolitical shifts are fundamentally changing shipping routes and trade dynamics. Experts predict a potential 1 percent drop in global container shipping volume in 2025 due to these challenges. The industry is actively seeking strategies to adapt and maintain resilience in an increasingly complex global environment.

Key Points: Global Trade Tensions Reshape Transport Industry Kim Young-tae Says

  • Trade protectionism causing major shifts in global shipping routes
  • U.S. tariffs expected to reduce container shipping volume
  • Geopolitical tensions disrupting maritime trade patterns
  • Transport industry seeks resilience amid global challenges
2 min read

Global transport industry sees big shifts from rise of trade protectionism

ITF Secretary General reveals how trade wars and geopolitical shifts are transforming global transportation and shipping dynamics

"We have no choice but to adapt to different situations in the global environment - Kim Young-tae, ITF Secretary General"

Seoul, May 24

Intensifying trade uncertainties, including tariff wars, have a great impact on the global transport industry, which has no choice but to "adapt" to the changed situation, the chief of the inter-organisational transport body said.

"(The global trade war) has an impact on what kind of goods we transport, causing big shifts in items transported from one country to another," said Kim Young-tae, Secretary General of the International Transport Forum (ITF), in a group media interview at the 2025 ITF Summit in the eastern German city of Leipzig.

"We have no choice but to adapt to different situations in the global environment as we are transporting goods and people," Kim said, explaining that tariffs affect the supply and demand of goods for trade, such as automobiles, reports Yonhap news agency.

Kim said geopolitical tensions can also disrupt and restructure maritime trade routes, referring to years-long tensions in the Red Sea, one of the world's most vital waterways in the Middle East.

The Donald Trump administration slapped hefty "reciprocal" tariffs on its trading partners, including 25 percent duties for South Korea, in early April, only to pause them for 90 days. Washington has also imposed sectoral tariffs, including 25 percent levies on all steel and automobile imports.

According to a report from global maritime consultancy Drewry, these U.S. trade policies are forecast to lead to a 1 percent drop in global container shipping volume in 2025.

"We are attentively monitoring the situation ... and taking into account the trade and climate change issues to make projections on the growth of the transport industry," he added.

The annual ITF summit was set to wrap up its three-day run Friday after global transport leaders from more than 80 countries across the world, including South Korea and the Unites States, gathered to discuss measures to boost transport resilience to global shocks.

In the summit, South Korean Transport Minister Park Sang-woo shared South Korea's efforts to promote the use of public transportation and the transition to electric vehicles (EVs) for reducing carbon emissions, according to Park's office.

Asked about how the private transport sector can incorporate AI into their businesses amid differences by country in terms of standards on "safe" and "responsible" use of the technology, Kim said the ITF's policy recommendation may serve as a guideline on the international community's direction on the matter.

- IANS

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Reader Comments

Here are 6 diverse Indian perspective comments for the article:
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Rajesh K.
This trade protectionism wave is worrying for India too. Our exports could take a hit if more countries start imposing tariffs. The government should focus on strengthening trade ties with friendly nations in Asia and Africa. Atmanirbhar Bharat is good, but we can't ignore global trade completely.
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Priya M.
Interesting to see South Korea pushing EVs while we're still struggling with basic public transport infrastructure in many cities. Maybe we should learn from their model? Our metro projects take forever to complete 🚇 The transport minister mentioned here seems more proactive than ours!
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Amit S.
The Red Sea tensions mentioned here affect Indian trade too - our shipping costs have gone up by 30%! This protectionism trend is making everything more expensive. Government should invest more in domestic manufacturing to reduce import dependence. Make in India needs faster implementation.
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Sunita R.
While everyone talks about tariffs, what about the environmental impact of changing trade routes? Longer shipping routes = more emissions. The article briefly mentions climate change but doesn't explore this enough. India should push for green shipping initiatives at such forums 🌱
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Vikram J.
The AI discussion is most relevant for India - we have the tech talent to lead in smart transport solutions. But our regulations are too slow to adapt. Look at drone deliveries - China is way ahead while we're still debating policies. Need more urgency in adopting new technologies!
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Neha T.
As someone working in logistics, I see daily how these global shifts affect local businesses. Raw material costs are unpredictable, shipping delays are common. Hope our policymakers are paying attention to these international discussions. We need long-term strategies, not reactive measures.

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