Maritime Shipping and Trade

The concept of international maritime shipping relies on the continuation of it regular programs, otherwise known as maritime routes. Maritime shipping or transportation follows a great circle distance. Arcs are drawn on the water surface as it is found all over the world. Maritime transportation, because of its physical attributes, is considered geographical.  It also has control strategies and has its own commercial usages.

Maritime transport categories

While a consideration with the geographical attributes is, strategic and especially commercial considerations are much more dynamic. Below are categories of maritime transport based on two criteria:

  1. Cargo bulk and liner shipping along with passenger ferries and cruise ships for carrying passengers.
  2. Shipping of both deep and short sea shipping.

Deep sea transport involves long shipping distances and is normally carried out by ship liners. On the other hand, short sea shipping does not involve crossing an ocean but mostly just river or sea transport. Only a number of bulk, coast and various ferry services qualify in the short sea shipping category.

Disadvantages of shipping as means of trading

When bulk cargo is concerned, the loading and unloading process may even absorb more than a few days of treatment. These disadvantages are principally deterrent in cases where the cargo has to be moved to even a short distance, or when an express service delivery is required. In short, below are two disadvantages of shipping as means of trading:

  1. The pace is somewhat slow.
  2. Delays when the loading and unloading in ports takes place.

When bulk cargo is concerned, the loading and unloading process may even absorb more than a few days of treatment. These disadvantages are principally deterrent in cases where the cargo has to be moved to even a short distance, or when an express service delivery is required.

Ship size and its relevance to trading

Maritime shipping is dominated by fuel, mineral deposits and grains which are bulk cargos. This movement contributes the main energy generation of the world because it helps move the system for developed and transformation of food.

If the ship is bigger, the cost per unit transported would be much lower, that is the principle of economies of scale which is also a primary to the money matters of maritime transportation or shipping. The trend has particularly been evident in containerized and bulk shipping. As a result, the quantity of containerized cargo has grown significantly and the majority of the worldwide trades of man-made goods are now carried in containers, and the common volume measure of the containers is weighed by the twenty-foot equivalent unit, or TEU. Coming from a point of view from a maritime shipper, using larger container ships is a straightforward process as it conveys economies of scale and thus lowers costs per TEU carried.

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