Global Supply Chain Forum Tackles Rising Costs and Logistics Challenges for Small Island States

The inaugural United Nations Trade and Development Global Supply Chain Forum (GSCF) kicked off in Barbados this week, shining a spotlight on the significant transport and logistics challenges facing small island developing states (SIDS). The four-day event, hosted by the Government of Barbados and the United Nations Conference on Trade and Development (UNCTAD), brought together over 900 delegates from 127 countries to address these pressing issues.

Prime Minister Mia Amor Mottley set the tone for the forum, highlighting the dire situation faced by SIDS during the COVID-19 pandemic. She revealed that shipping costs for these island nations had skyrocketed by a staggering 76% compared to pre-pandemic levels. This surge in costs, coupled with geopolitical tensions and supply chain disruptions, has had a debilitating effect on SIDS, driving up prices for importers, carriers, and consumers.

Mottley emphasized that SIDS pay more for transport, insurance, and maritime imports than any other country grouping. Furthermore, liner connectivity for these islands has declined by 10%, surpassing the global average drop of 8%. “We’re the first to lose market share,” she lamented, adding that SIDS are often the “last to be seen” and bear the brunt of the global pursuit of unsustainable lifestyles.

The Prime Minister also underscored the additional challenges posed by climate change and natural disasters. In 2021, Barbados experienced events that led to the closure of its air and seaports for several days and the temporary closure of 38 buildings due to volcanic dust from the eruption of La Soufriere in St. Vincent.

Recognizing the need for comprehensive solutions, Mottley called for the pursuit of the Bridgetown Initiative and reforms to the global financial architecture, ensuring fair opportunities for developing countries, including vulnerable middle-income countries and SIDS.

UNCTAD Secretary-General Rebeca Grynspan echoed the Prime Minister’s sentiments, highlighting the disproportionate impact of higher maritime costs on inflation in SIDS compared to the rest of the world. She emphasized the need for inclusivity, sustainability, and resilience in supply chains, and expressed hope that the forum would provide concrete tools and technical assistance to address these challenges.

United Nations Deputy Secretary-General Amina J. Mohammed described the GSCF as a pivotal moment in charting a way forward, urging participants to seize this opportunity to forge a brighter future where no nation is left behind and global trade remains a force for economic growth, prosperity, and sustainable development.

As the forum continues, delegates will engage in discussions and seek solutions to address the multiple disruptions to global supply chains and the significant impacts on developing countries, with a particular focus on the unique challenges faced by SIDS.