Maritime Trade as a Facilitator of Global Trade
Maritime trade has accompanied human civilization from the moment the boats strong enough to cross seas were invented. The use of sea vessels allowed to reduce the traveling time to the minimum, while significantly increasing the volume of transported goods. Thanks to its versatility and reliability, that type of trade remain the main to this day. According to statistics, almost 90 percent of modern world trade is based on shipping (Kosowska-Stamirowska et al. 1). The fact is facilitated by the significant advantages that ships represent. Firstly, of all forms of transport, they can carry the most substantial amount of cargo. Aircraft communications are extremely limited in carrying capacity, and borders are an obstacle to ground interchanges. From this follows the second advantage of maritime commerce – the ability to move massive loads between continents or parts of continents. Since there is currently no alternative to shipments, the marine business acts as a facilitator of global trade, linking the most remote points of the world.
Supply and Logistic Chain
Speaking about shipping companies, people often use the terms “logistics” and “supply chain.” Often one word is replaced by another functioning as a synonym. However, despite a large number of similarities in these concepts, they have several differences from each other. First, logistics chains are part of the phenomenon of supply links (“Is Logistics the Same?”). This process includes transportation, packaging, warehousing of various goods. Supply chain management is the framework in which logistics decisions are made (“Is Logistics the Same?”). Logistics is more focused on customer satisfaction by moving goods and information, while supply chains are aimed at gaining a business advantage (“Is Logistics the Same?”). Thus, these terms should be strictly separated in the concept, but be performed synchronously to achieve the best results.
Difference Between Containerized Cargo and Other Cargo Transportation
All loads can be divided into general and bulk cargo based on the type of objects and their shape (“Types of Maritime Cargo”). The first category, to which the containers belong, is unified, each object can be taken and counted separately. Items from the second category are either liquid, that is, various chemicals, or dry cargo, for example, ore. They cannot be counted in any other way than by weighing. Accordingly, the difference between containers and bulk cargo is the ability to load a specific number of objects. Containers can also be placed and removed from the vessel in a reasonably quick time. Simultaneously, the procedure for extracting bulk cargo is much more time-consuming (“Types of Maritime Cargo”). Thus, containers are a unified type of load that can be used for convenient and quick transportation of a large number of items.
Container Business History
Containers are a relatively new invention, which appeared in active use only in the middle of the last century. Undoubtedly, they were utilized before that, but the US Army first introduced them into widespread use (Levine). In 1955, Malcolm McLean began experimenting with container designs, which ultimately led to the formation of a patent for this invention. In 1956 the first transportation using these devices from Newark to Houston took place. At the same time, systems for installing and securing containers began to be developed, which in 1959 led to the development of a gantry crane that significantly reduced the loading speed (Levine). Finally, in the late 60s, ISO approved international standards, which laid the foundation for the active development of the container business. In the coming years, more shipping companies appeared, which led to the availability of corresponding ports in 90% of the world’s countries. The development of this business was especially promoted by the Asian eastern and south-eastern countries, particularly China.
Top 10 Container Shipping Lines
At the moment, container shipping is top-rated due to its high reliability and functionality. Therefore, many companies are working in this field and actively competing with each other. The first place in this fight is occupied by the corporation APM-Maersk, based in Denmark, known for its vast fleet of 771 container ships (“10 Largest Container Shipping Companies”). The Swedish Mediterranean Shipping Company lags behind the fleet’s size by 200 vessels. The top three closes with the China Ocean Shipping Company or COSCO, operating in more than 40 countries. The fourth and fifth places are occupied by European companies CMA-CGM and Hapag-Lloyd, from France and Germany, respectively. The rest of the ranking of the ten largest corporations is entirely held by container transportation in Asia. They are represented by One Network Express from Japan, Evergreen Marine Corporation from China, Yang Ming Marine Transport from Taiwan. There are also Hyundai Merchant Marine from South Korea, and the Pacific International Line from Singapore (“10 Largest Container Shipping Companies”). Each of these corporations has approximately the same fleet and coverage of countries, which only increases competition.
Global Port Operators
A considerable number of ships and companies require the appropriate amount of well-equipped seaports. For the dock to function correctly, an operator is required – an association or administration that regulates the port’s activities according to established standards. The operation of these companies includes the control of the movement cargo both at the dock itself and between ships. In general, the port operator’s task is to optimize and maintain the effectiveness of the management by tracking equipment, successful logistics, and timely documentation. Some shipping companies also have port operators, such as the China Ocean Shipping Company. Cosco Shipping Ports is currently the largest dock operator, spreading its influence not only in China but around the world (“Top 10 Box Port Operators”). Most of the port operators are Asian or Middle Eastern companies due to the development of container shipping in the region.
Works Cited
“10 Largest Container Shipping Companies in the World.” Marine Insight. 2020,
“Is Logistics the Same as Supply Chain Management?” Michigan State University. 2020. Web.
Levine, Judah. “The History of the Shipping Container.” Freightos. 2016.
Kosowska-Stamirowska, Zuzanna, et al. “Evolving Structure of the Maritime Trade Network: Evidence From the Lloyd’s Shipping Index (1890–2000).” Journal of Shipping and Trade, vol. 1, no. 10, 2016, pp. 1-17.
“Top 10 Box Port Operators 2018.” Lloyd’s List. Web.
“Types of Maritime Cargo” The Geography of Transport Systems.