Transport and Maritime Traffic

Topics: Transport, Ship, Shipping Pages: 3 (910 words) Published: February 21, 2014
(II) Maritime traffic is growing
Cost Efficiency
Cost is an important factor which trading industries will have to consider. In Europe and North America the proportion of development of road and rail is the highest at 25 to 35 per cent. Thus, trade is predominantly transacted by road and rail. Cargo between countries without a common border is carried mainly by sea because of the growth rates for air freight are more than double those for shipping in recent years. In comparison to transporting via ocean freight and air freight, maritime traffic is considerably much cheaper. Airlines bills a chargeable weight. Chargeable weight is calculated from a combination of the weight and size of a shipment. Whereas, sea carriers charge per container rates for shipping in standard containers. For example; while a standard shipment shipped from Singapore to Europe costs Sgd5000, the same shipment might cost up to Sgd35,000 via air freight. While weight can factor into the price from sea carriers, their charge tends to be based more on the size of a shipment. Thus, with larger and heavier shipments, it is much cheaper to ship by sea. Thus, the main advantage of marine transportation is its economies of scale making it the cheapest per unit of all transport modes which is one of the important factors as to why maritime traffic is growing. According to data statistics UK, US, EU, NZ and many other countries' marine government data statistics show that maritime traffic holds the highest transportation statistics in the country. (http://www.marad.dot.gov/library_landing_page/data_and_statistics/Data_and_Statistics.htm, www.transport.govt.nz/ourwork/sea/figs/, ‎http://www.gov.uk/government/.../maritime-and-shipping-statistics).

Growth in World Trade via globalization
As mentioned in the introductory paragraph, the main reason behind the growth in maritime traffic is the growth in globalization. In the past, the WTO provided a new cycle to world trade whereby China’s...

References: Aragon, James R.; Messer, Tuuli Anna (2001). Master 's handbook on ship 's business. Cambridge, Md: Cornell Maritime Press
William C
‎(IMBM/MTMM2311/NOTES/0110)
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