Shipping trade is important because it enables the transportation of goods and commodities across long distances, connecting producers and consumers worldwide. It plays a crucial role in global economic growth and facilitates international trade by providing a cost-effective and efficient means of moving goods.
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Shipping trade plays a vital role in the global economy due to its significant impact on international trade and economic growth. As an expert in the field, I have witnessed firsthand the immense importance of shipping trade in connecting producers and consumers worldwide. The transportation of goods and commodities across long distances facilitated by shipping trade enables the smooth flow of trade and commerce on a global scale. This is achieved through the efficient movement of goods from production centers to markets, ensuring the availability of products and resources for consumers.
The following quote from Peter Drucker, a renowned management consultant, emphasizes the importance of shipping trade: “The modern shipping industry is the lifeblood of the world economy. Without shipping, intercontinental trade, the bulk transport of raw materials, and the import/export of affordable food and manufactured goods would simply not be possible.”
To further illustrate the significance of shipping trade, here are some interesting facts:
Over 90% of the world’s trade is carried by the international shipping industry, making it the most critical mode of transportation for global commerce.
Shipping trade is a highly cost-effective method of transporting goods. It is estimated that shipping costs are significantly lower compared to other modes of transport like air freight or land transportation.
The shipping industry employs millions of people worldwide across various sectors, including seafaring, port operations, shipbuilding, logistics, and maritime services, contributing to job creation and economic development.
Containerization revolutionized the shipping industry in the 1950s. Today, container ships transport approximately 90% of the world’s non-bulk cargo, allowing for efficient handling, transfer, and storage of goods.
Shipping trade enables access to a wide variety of products and resources that are not readily available in certain regions or countries. It facilitates the import and export of goods, ensuring global supply chains are maintained.
To summarize, shipping trade is of utmost importance as it serves as the backbone of international trade, connecting producers and consumers worldwide. It provides a cost-effective and efficient means of transporting goods, contributing to global economic growth and development. As Peter Drucker’s quote suggests, without shipping, the intercontinental trade and movement of goods that we rely on would be severely hindered.
The video explains the trends in the shipping industry towards larger ships, slower shipping speeds, and consolidation, as well as the international nature of shipping crews. It highlights the cost-effectiveness of transporting goods by sea and the complex nature of storage planning. The Maersk Essex’s journey from Asia to the Port of Los Angeles is followed, where it had to wait for 17 days to unload its cargo due to the port’s inefficiencies. The Asia to North America supply chain slowdown is due to an overloaded system, with increased demand leading to congestion and delays. The disruption has hit an industry designed for standardization and economies of scale, but the ships keep delivering their loads.
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Ships transport more than 80% of world trade volume and about 70% of trade value. The world fleet that carries seaborne trade involves dry bulk ships, containerships and oil tankers.
- Allows countries to access the raw materials needed to develop their economies.
- Enables the manufacture and export of affordable goods and products.
Cost, size, environmental performance and safety are the main advantages of maritime transport over other means of transport. In an ever-growing globalized economy, there is an rising need for shipping greater cargo volumes in the shortest possible period.
As the world’s population continues to grow, particularly in developing countries, low-cost and efficient maritime transport has an essential role to play in growth and sustainable development. Shipping helps ensure that the benefits of trade and commerce are more evenly spread.