Global supply chains are under unprecedented strain from climate shocks, geopolitical conflicts, and escalating costs, severely impacting developing countries, according to ministers and experts at the 16th UN Conference on Trade and Development (UNCTAD16) in Geneva.
Fragile logistics networks are deepening inequality and threatening progress on sustainable development, turning the world’s trade arteries into “development flashpoints,” warned UNCTAD Secretary-General Rebeca Grynspan.
“A ship that once crossed the Red Sea in days now sails for weeks around the Cape of Good Hope,” Ms. Grynspan stated. “These are not just logistics challenges – they are development challenges.”
The conference highlighted how volatility in freight rates, shifting shipping routes, and reliance on conventional fuels are hitting vulnerable nations hardest. Small islands and landlocked developing countries are particularly exposed, with freight costs raising inflation five times faster than the global average.
Ms. Grynspan called for a “just triple transition” to future-proof global trade:
- Zero-carbon shipping
- Digital trade systems
- Resilient transport corridors that leave no country behind.
“Supply chains are not just ships and cargo,” she added. “They are also the 1.9 million seafarers who keep trade moving, the ports that need climate resilience, and the corridors linking landlocked countries to the world.”
Ministers agreed that recent crises, while exposing “profound vulnerabilities,” also offer opportunities for fundamental reform.
Saleh bin Nasser Al-Jasser, Saudi Arabia’s Minister of Transport and Logistics Services, emphasized that these challenges are the “new normal.” Saudi Arabia, which will host the 2026 UN Global Supply Chain Forum in partnership with UN Trade and Development, is investing heavily in infrastructure and digitization to maintain trade flow during crises.
Across regions, leaders stressed the need for fairness and strong partnerships to build resilience from the ground up:
- Moustoifa Hassani Mohamed, Minister of Economy, Industry and Investments of the Comoros, asserted that resilience for small island states “begins through a clear national vision” and cannot rely on external aid alone.
- Ricardo Viegas d’Abreu, Angola’s Transport Minister, highlighted regional integration as key, pointing to the Lobito Corridor connecting the Atlantic and Indian Oceans, and calling for private sector finance to bridge the infrastructure gap.
Discussions concluded that building resilience must be a long-term strategy focused on greener fuels, digital infrastructure, and skilled workers, going beyond mere crisis response.
India’s Commerce Minister, Piyush Goyal, reflected a growing global consensus, stating that supply chain security now outweighs short-term cost savings. “We are willing to pay that extra buck to be able to have resilience in our supply chains,” he said.
The insights from UNCTAD16, which included the launch of the Review of Maritime Transport 2025, underscore a central message: the future of trade depends on the resilience of its arteries. Supply chains must not only deliver goods but also deliver shared prosperity.
