Home
FacebookTwitterSearchMenu
  • Subscribe
  • Subscribe
  • News
  • Features
  • Knowledge Library
  • Columns
  • Customs
  • Jobs
  • Directory
  • FX Rates
  • Categories
    • Categories
    • Africa
    • Air Freight
    • BEE
    • Border Beat
    • COVID-19
    • Crime
    • Customs
    • Domestic
    • Duty Calls
    • Economy
    • Employment
    • Energy/Fuel
    • Events
    • Freight & Trading Weekly
    • Imports and Exports
    • Infrastructure
    • International
    • Logistics
    • Other
    • People
    • Road/Rail Freight
    • Sea Freight
    • Skills & Training
    • Social Development
    • Sustainability
    • Technology
    • Trade/Investment
    • Webinars
  • Contact us
    • Contact us
    • About Us
    • Advertise
    • Send us news
    • Editorial Guidelines
Sea Freight

Trade at risk as South China Sea tension rises

19 Aug 2024 - by Staff reporter
The Spratly Islands area where vessels from China and the Philippines collided. Source: FMSO
0 Comments

Share

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • E-mail
  • Print

Tensions between China and the Philippines in the South China Sea continue to escalate, particularly around the Spratly Islands, a region rich in resources and strategically important for trade.

Monday morning’s collision between Chinese and Philippine coast guard vessels near Sabina Shoal highlights the ongoing confrontations, with both sides blaming each other for the incident.

Apart from the threat to maritime trade on this sea route, regarded as a crucial access way to Taiwan, whose sovereignty isn’t recognised by China, the ocean near the Spratly Islands is believed to contain significant reserves of oil and natural gas.

As a result, it has become a focal point for territorial disputes among several Southeast Asian nations, including the Philippines, Vietnam, and Malaysia.

Following the latest incident at sea, China accused the Philippines of deliberately causing the crash, while the Philippines countered that the Chinese were engaging in aggressive manoeuvres. 

This incident is part of a broader pattern of confrontations in the region, particularly around the Second Thomas Shoal, which lies within the Philippines' exclusive economic zone (EEZ) and is a site of ongoing military resupply missions by the government in Manila.

The backdrop to these tensions includes a significant ruling by the Permanent Court of Arbitration in July 2016, which favoured the Philippines in its legal battle against China regarding maritime entitlements in the South China Sea.

The tribunal concluded that China had violated the Philippines' sovereign rights and invalidated China's extensive claims marked by the "nine-dash line" that encompasses most of the South China Sea. 

Despite this ruling, China has refused to recognise the tribunal's authority or the decision itself, asserting that it will not be bound by such international legal determinations.

According to Global Conflict Tracker (CFR), the ongoing disputes and military confrontations have serious implications for trade and regional stability.

The South China Sea is vital for global shipping, with a significant portion of the world's maritime trade transiting through these waters. Disruptions due to military tensions could threaten these trade routes, impacting not only regional economies but also global markets.

CFR points out that the US has shown a vested interest in maintaining freedom of navigation in the area, conducting military operations to challenge China's assertive claims.

This involvement could lead to increased tensions and potential conflict, drawing in other regional players like Japan, which has also been enhancing military cooperation with the Philippines and Vietnam.

Sign up to our mailing list and get daily news headlines and weekly features directly to your inbox free.
Subscribe to receive print copies of Freight News Features to your door.

Efficiency key to logistics success as Namibia eyes growth

Africa
Logistics

It’s critical to address NTBs as a matter of urgency. – Harold Schmidt, NLA.

22 May 2025
0 Comments

Container vessel remains detained in Malaysia

Logistics
Sea Freight

The captain, a Russian national, failed to present any documents authorising the anchorage.

22 May 2025
0 Comments

Improved weather boosts soybean harvest across South Africa

Imports and Exports

Total deliveries last Friday were 1.5 million tonnes – a 10% increase on the same period last year.

22 May 2025
0 Comments

Trump meeting hailed as a ‘great success’

Trade/Investment

The president said the meeting had fulfilled South Africa’s key objectives to reset its relationship with the United States.

22 May 2025
0 Comments

Trump talks: SA delegates put on strong show despite initial drama

Freight & Trading Weekly
International

That the US President would go for the jugular about the treatment of white farmers was to be expected.

21 May 2025
0 Comments

Road rot – Viljoenskroon highlights deteriorating infrastructure

Logistics
Road/Rail Freight

It begs the question, how is Transnet going to bring about change in how we move freight? – Gavin Kelly, chief executive, RFA.

21 May 2025
0 Comments

BMA steps in to help DG and FMCG cargo at Groblersbrug

Border Beat
Road/Rail Freight

Officials said they could only assist with AEO cargo once it was in the control zone.

21 May 2025
0 Comments

Heavy lifter moves beach pavilion in feat of project logistics

Logistics

Self-propelled modular transportation ensured the building could be carried in one piece.

21 May 2025
0 Comments

Solid contracts help navigate global uncertainties

Customs
Freight & Trading Weekly
Skills & Training
Trade/Investment

“Citrus growers of the Western Cape have firsthand experience, with tariff hikes touted by the US leaving local exporters unable to compete."

21 May 2025
0 Comments

MSC acquires stake in Ukrainian logistics firm

Logistics

Medlog has bought 50% of a local intermodal logistics operator and shares in a cross-border terminal.

21 May 2025
0 Comments

Transnet and Grindrod strike R285m container deal

Logistics

The new facility will boost capacity fourfold to 200 000 TEUs per annum.

21 May 2025
0 Comments

OPINION: All eyes on Washington for US-SA bilateral negotiations

Economy

Imagine the Budget is rejected yet again, and Elon Musk whispers into Trump’s good ear: “These guys can’t even pass a national budget.”

21 May 2025
0 Comments
  • More

FeatureClick to view

Durban & Richards Bay 6 June 2025

Border Beat

Zim's anti-smuggling measures delay legitimate freight operations
06 Jun 2025
Cross-border payments remain a hurdle – Masondo
30 May 2025
BMA steps in to help DG and FMCG cargo at Groblersbrug
21 May 2025
More

Featured Jobs

New

Seafreight Import / Export Controller DBN

Tiger Recruitment
Durban
06 Jun

CargoWise Specialist

Switch Recruit
Eastrand
05 Jun

Estimator

VDM Cargo Solutions (Pty) Ltd
Brackenfell, Cape Town
05 Jun

Sea Freight Import Controller

VDM Cargo Solutions (Pty) Ltd
Brackenfell, Cape Town
05 Jun
More Jobs
  • © Now Media
  • Privacy Policy
  • Freight News RSS
  • About Us
  • Advertise
  • Send us news
  • Contact us