The Rundown on Maritime Economics

Transportation through the oceans is a one of the key catalysts of trade, expansion and prosperity globally. The intricate mechanism of a maritime economist is connected to the movement of the world economy. Hence, the start of what would be now called Maritime Economics. This was an idea created by Hercules Haralambides of Erasmus University in Rotterdam.

What is Maritime Economics?

It is the holistic and integrated study of ocean shipping or transportation, the management of global supply chains, and port and terminal management. It is with maritime economics that the term maritime logistics was taken from which focuses on the combined optimization of liner shipping networks and container terminals.
Maritime economics focuses on the study of service production and product manufacturing in the maritime industry.  It is committed to budding an understanding of the dynamics of economic activities in the maritime industry and in explaining the factors affecting the demand and supply of those activities. The maritime industry has different types of economic activities that range in different categories; Sea-based and land-based.

Sea-based categories

•    Shipping
•    Production of offshore and gas exploration
•    Aquaculture
•    Fishery

Land-based category

•    Ship repairs
•    Shipbuilding
•    Handling of the cargo
•    Port operations

Port operations cover logistics support services and other subsidiary services like naval architecture, finances, legal review, crewing classification, and equipment/product development.

Maritime industry is important because the seas are also a great transportation-provider, and is one huge source of protein and activity. The sea also aids business activities that produce employment and create positive fiscal effects to a country.

Maritime economics in a maritime nation

Malaysia, bordered and dependent on its seas to facilitate most of their economic activities and trade, may be considered as a maritime nation. The country draws its hydrocarbon energy resources and most of its protein source from the seas. It also harnesses a location that is strategic because it is along chief trade lanes and has world class ports. Malaysia also generates profits coming from marine tourism by the promotion of various activities such as cruising, diving, and boating at the same time developing island resorts.

There is no world body that oversees or guides the maritime economic activities. However, The International Maritime Organization or the United Nations organization that promotes and shoulders responsibility for safe and clean seas, makes certain that the maritime economic activities are continued and brought out in a systematically sustainable manner. They accomplish this through a range of International Maritime Organization conventions that govern the said activities such as shipping, operations undergoing in the port, and shipbuilding.

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