This website uses cookies to ensure you have the best experience. Learn more

Microeconomics Of Maritime Shipping Essay

2269 words - 9 pages

Much of our modern day information about the Maritime economy has been primarily based on the historical happenings in the global economy. As world become ever more globalized and interlinked, maritime shipping is experiencing challenges as well as enjoying greater business opportunities. Maritime shipping is mainly the primary means of transporting parts and the finished goods around the world. Because shipping is such an old industry, with a history of continuous change, sometimes gradual and occasionally catastrophe, Time and again we find that shipping and trade will slipway from the economy and then magical reappear in some new voyages no other industry has played such a central part in the economic voyages over thousands of years. The airline industry is shipping’s closest counterpart and it has barely 60 years of economic history. It plays a fundamental role in the economic development and trade of countries. In essence, economic development, trade and transport are mutually supportive. Ocean liner shipping is a regularly scheduled service on established ocean routes between countries or areas. Liners carry primarily manufactured goods that are relatively high in value. Although liners account for less than 53% of all freight, they amount for more than 93% of U.S. freight. ( A striking feature of the shipping business to outsiders is the different character of the companies in different parts of the industry. Liner companies and bulk shipping companies belong to the same industry, but they seem to have little else in common. There are several different groups of companies involved in the transport chain, some directly and others indirectly. The direct players are the cargo owners, often the primary producers such as oil companies or iron ore mines and the shipping companies. Each has a slightly different perspective on the business. In 2004, 5518 shipping companies owned the 36,903 ships carrying the world’s deep-sea trade, an average of seven ships per company. There are some very big companies, at least when measured by the number of ships owned, and one-third of the fleet was owned by 112 companies with over 50 ships. Amongst the biggest companies are the national shipping companies such as APM-Maersk Company with 566 ships owned and chartered, Mediterranean Shg Co with 189 owned ships and also chartering 290, many of which are privately owned companies, and the remainder was owned by 4690 companies with an average of 2.3 ships each. (
Literature Review
Liner shipping networks are developed to meet the growing demand in global supply chains in terms of frequency, direct accessibility and transit times. Expansion of traffic has to be covered either by increasing the number of strings operated, or by vessel upsizing, or both. As such, increased cargo availability has triggered changes in vessel size, liner service schedules and in the structure of liner shipping. When...

Find Another Essay On Microeconomics of Maritime Shipping

Challenges and Opportunities for the Maritime Economy

1161 words - 5 pages Much of our modern day information about the Maritime economy has been primarily based on the historical happenings in the global economy. As world become ever more globalized and interlinked, maritime shipping and port industries are experiencing challenges as well as enjoying greater business opportunities. Maritime shipping is mainly the primary means of transporting parts and the finished goods around the world, has recently attracted

Older Ports Essay

994 words - 4 pages demand and the worker spends earnings in this region. Nevertheless, the region's job base is small, but earnings per worker has an income above the per capita income. Therefore, the monetary impact is important to the region's economy. The older port maritime has often struggled to keep up with evolving maritime industry due to physical limitations of the port, which are shallow and cause for higher shipping cost. Another reason for the

International Coastal Security Compared to U.S. Coastal Security

1173 words - 5 pages International Maritime Organization Security Standards Compared to United States Maritime SecurityOver the past thirty years the United States and other countries of trade have made a vow to abide by the rules of the International Convention for the Safety of life at Sea (SOLAS). These rules govern the operations and procedures of all maritime issues. Given the recent horrific incidents of terrorist acts, the vulnerability of maritime security

Transportation and How it Effects Logistics

643 words - 3 pages it is related to navigation or commerce on the sea (Merriam –Webster, 2014). Maritime plays an important role in international freight. This mode has an operation that falls under three different types. The first is liner shipping which the business is based on the same ships, routes, prices, and regular voyages. The second is tramp shipping, this consist of irregular transport prices, unsteady transport routes, and schedules. This usually

Understanding Somali Piracy

1015 words - 4 pages Understanding Somali Piracy In recent years, frequency of pirates attack off the cost of Somalia is drastically increased and became a great threat to international commercial shipping industries. According to the International Maritime Bureau (2011) report, more than 60% of the piracy attacks were committed by Somali pirates in the first six months of 2011 and many of the attacks have been east and north-east of the Gulf of Aden where is


2404 words - 10 pages interested in analysing the ripple effects of the economic shifts in terms of demand, price and eventual profits. Moreover, the possible measures that can be taken to insulate oneself against these fluctuations; enabling exporters, importers and maritime businesses to remain competitive and relevant in today’s economy. 3. POSITIVE AND NEGATIVE IMPLICATIONS AFFECTING EXPORTER, IMPORTERS AND SHIPPING COMPANIES 3.1 FREE TRADE AGREEMENTS WILL BOOST

Flags of Convenience: A Threat to Maritime

1588 words - 6 pages maritime activities of non-state actors largely unregulated by international law. As a result non-state actors such as Shipping companies, Ship owners, and even armed groups/ terrorist organizations are greatly benefitted. Even though International treaty laws as well as customary international law has developed mechanisms to suppress acts of violence at sea, such as piracy or other acts directed against ships, airplanes or platforms, these

Piracy and Maritime Terrorism in the Horn of Africa

2957 words - 12 pages The Horn of Africa is one of the most important hubs for maritime traffic in the world today. Raw goods, including oil, that are departing the nations of the Arabian Peninsula in the Middle East must pass through this area in route to Europe and the West. Three-fourths of the Earth is covered in water and roughly eighty percent of global economic goods are transported via commercial maritime shippers. The volume of maritime trade is highly

It Takes Warships and Commandos to Fight Pirates on Skiffs

760 words - 4 pages shipping industry and the world’s most invested countries in maritime trade have responded effectively to these attacks in the past few years by taking matters into their own hands. Specifically, many countries around the world have been deploying anti-piracy naval task forces to piracy “hot spots” and shipping companies have been staffing ships with armed security teams. Statistics confirm that piracy off the coast of Somalia has dropped

Sealift in Desert Shield/Storm

1037 words - 5 pages States to the Persian Gulf. While achieving the Navy’s goals of forward power projection, commanding from a distance, maritime supremacy, controlling international shipping lanes, and strategic sealift, moving war materials and personal where it’s needed over the ocean when it’s needed. Works Cited "Military Sealift Command." MSC History. United States Navy, n.d. Web. 22 Feb. 2014. "The Operation Desert Shield/Desert Storm Timeline."

An analysis on the service gap between customer’s expectations and experience received from Wan Hai Lines (maritime shipping company) in Penang

1116 words - 5 pages competitiveness is determined. In doing so, a company should be able to provide what the customers paid for through effective maritime shipping services. This study will be as a practical guideline for Wan Hai Lines management to measure the current service quality level by analysing the variances between the expectations and customers’ experiences. Upon completion of this research, Wan Hai Lines would be able to identify the key parameters that

Similar Essays

Good Order At Sea In The Asia Pacific Region

1565 words - 6 pages sea is not for gaining supremacy but focusing in global trade, international shipping and maintaining the maritime security as the result of globalization . There are five features of sea importance grouped by Till those are, resource, transportation and trade, information exchange, area of dominion and as an environment . In regard to sea strategic position, human exploration and exploitation significantly increasing correspondingly with modern

A New, Improved Way To Package Goods For Transport With Liner Shipping

1598 words - 7 pages . The impact of operational and strategic management on liner shipping efficiency: a two-stage DEA approach. Maritime Policy & Management, 39(7), pp.653–672. Available at: [Accessed February 26, 2014]. BIMCO, 2012. Macro Economics - Political leadership must clear the uncertainty about the future to stabilize consumer confidence ... Available at:

A Comparion Of Two Musems On Hong Kong´S Maritime History

1063 words - 5 pages Museum aims at introducing more Hong Kong’s and coastal Guangdong’s maritime development in economic aspect, such as shipping trade and harbour development. Therefore, these two museums are with different aims because of the dissimilar operation systems. For the details in two exhibitions, there is a similarity that both of them mainly introduced Hong Kong’s and coastal Guangdong’s maritime history. In Hong Kong Museum of Coastal Defence, it

Globalisation And Maritime Security Essay

3774 words - 15 pages the threats, the International Maritime Organization (IMO) has issued several regulations concerning on maritime safety and security . International Ship and Port Facility Security (ISPS) Code is one of the most fashionable and revolutionary systems in the evolution of shipping industry security . The U.S established several security preventive policies such as the Proliferation Security Initiative (PSI), Container Security Initiative (CSI