Chapter 1 DEMAND, SUPPLY AND SUSTAINABILITY: SOME CONSIDERATIONS FOR MARITIME POLICIES Jan Hoffmann * , Vincent F. Valentine and Hassiba Benamara Trade Logistics Branch, Division on Technology and Logistics, United Nations Conference on Trade and Development (UNCTAD)† ABSTRACT This chapter describes the fast-evolving environment in which both shipping and ports operate and identifies some key trends that are currently defining the maritime transportation landscape. First, it considers the demand for maritime transport services as measured by economic growth, trade flows and seaborne trade. Second, it examines relevant supply- side variables, including the global fleet carrying capacity, port services and other related maritime businesses. Furthermore, the chapter draws attention to some unintended effects of maritime transportation, in particular, the related external environmental and societal costs. While the role of maritime transportation as an integral part of global logistics is reiterated, the need to address the environmental externalities generated by the sector is equally highlighted as an increasingly important consideration. Climate change mitigation and adaptation requirements, in particular are emerging as a major game- changer. From a policy perspective, these developments entail some important cross- sectoral implications and may give rise to potentially overlapping and competing priorities and objectives. In this context, it is argued that an effective response to the current concerns facing maritime transportation and to the new market realities calls for a multi-stakeholder involvement and greater policy coherence and collaboration among policy makers, industry and trade. Keywords: International seaborne trade, demand and supply, sustainability, externality, maritime policy * Corresponding Author Email: jan.hoffmann@unctad.org. † The large majority of data in this chapter is sourced from UNCTAD Review of Maritime Transport, up to the 2013 issue, and is not explicitly referenced. See www.unctad.org/rmt for further information.