By J. M. Lane
Introduction
Today, maritime trade plays an important role in globalization and the interconnectedness of cultures across the world. Maritime trade is the transportation of goods by sea and river systems between trading partners for use in commerce. Because of the cost-effectiveness of sea travel, most of our trade takes place on the high seas. Although maritime trade slowed down due to the recession that began in 2007 and continued until 2009, it is still a vital part of our global community.
Definition
Maritime trade exists between countries all across the globe using intricate and interconnected maritime trade routes. Trade on a global scale exists because of access to deep-water ports along coastlines and shallow ports on inland river systems. Port efficiency and trade route proximity directly affect the cost of goods across space
Maritime trade exists between all countries in some form or fashion. Countries trade with one another over land, air, and sea, but maritime trade is the most cost-effective mode of transportation. According to the United States Department of Transportation, the average freight ship runs an astonishing 514 miles per gallon of fuel for every one ton of cargo. The next closest form of transportation is the train, which runs 202 miles per gallon per one ton of cargo .Currently, 75% of trade takes place over water.
History
It is believed that sails were first used roughly 7000 years ago in Mesopotamia. Sailed ships manufactured out of wood began to appear during the dynastic period of Ancient Egypt (3000 -2200 BCE). Between 2500-1700 BCE, trade opened up between the Indus Harappa Civilization and Mesopotamia.
Roughly around 2000 BCE, Babylonia was turning its attention away from the east and toward a new trading ally to the west. The Minoans of Crete (3650-1400 BCE) began to trade between the Greek mainland, Egypt, and Mesopotamia. Greek city-states developed and extended trade in the Mediterranean as the influence of Athens and Corinth grew. In this network the Greeks used a trireme, which had a single rectangular sail and was manned by a crew of oarsmen within the hull of the ship.
Maritime trade continued throughout the Roman Empire (64-453 CE) bringing wheat from North Africa to feed the Roman people. Most of the trade that took place in the Mediterranean was designed to enrich Rome and later Constantinople. River systems in China, such as the Yellow and Yangtze Rivers, were main transportation highways for maritime vessels.
While trade was mostly local and intra-imperial throughout the late middle ages, the Abbasid Caliphate (750-1258 CE) in Arabia introduced new shipping styles to East Africa. The Arabs traded with Africans throughout this time period. This was all made possible by Arabic engineers and the development of the caravel, a medium hulled ship with a single triangular sail.
During the Age of Exploration (1400s-1600s CE) the Portuguese began trading with the Spice Islands in Indonesia after discovering a route around Africa. The Spanish built a mercantile empire in America through the mining of silver. This trade was made possible with the use of the galleon, a large ship with four large square sales and a single triangular sale on the rear.
The 19th and 20th centuries saw a surge in technological innovation in the sphere of maritime shipping. With the invention of steam power, the shipping industry saw a dramatic increase in the speed and size of ships. The 20th century saw the development of the internal combustion engine and the development of containerization. Shipping containers have made the process of transferring goods from one form of transportation to another much more efficient.
Today there are approximately 400 ocean liner companies and services that move goods on fixed schedules and regularly schedules routes. These companies and countries around the world compete with one another to control trade routes and increase profits. The busiest maritime traffic today goes through the Strait of Malacca between Malaysia and Singapore. As much as half of the worlds maritime trade goes through this strait every year.
Current Trends
While maritime transportation makes up a large percentage of all international trade throughout the world, current data shows that freight traffic has slowed down. This reduction in maritime traffic is due to five logistic trends:
Because of the increasing number of delivery locations and expanding markets, shipping companies are trying to reduce delivery times to increase profits;
Shipping industries are now more strategically packing merchandise into fewer ships to increase volume so as to reduce shipping costs;
Increasing number of pharmaceutical products and electronics have required better shipping methods and fewer changes in transportation types;
The increase in natural disasters have forced shipping companies to rethink logistics networks;
There has been major growth in e-commerce that has a major impact on business-to-business transportation.
Due to an improvement in technology, the shipping industry has been able to increase efficiency while decreasing traffic along shipping lanes. Digital charts known as Electronic Chart Display and Information Systems have improved shipping efficiency. Service satellites have brought internet to ships across the globe. Newly conceptualized sailing technologies have developed allowing ships to run on wind power more efficiently than older sailing methods. Another solution to current shipping issues is the development of carbon fiber containers so that they can collapse for easy storage on the return trip.
Another reason why maritime shipping has plateaued in recent years is due to the increase in regulations on emissions. The International Maritime Organization (IMO) is one of the main regulatory bodies based out of London. This organization has placed a detailed regulation package requiring the shipping industry to follow safety and environmental protection measures.
Terrorism in the post 9-11 world plays a major role in the safety of consumer goods at sea. New security measures have helped to provide some improvements. In order to improve security it has been suggested that governments provide alternatives to ports in case of a shutdown and provide ample security so as to reduce the risk of a closure. States and container companies should also provide improved security measures while cargo is on the move.
Further Reading
Clark, X., Dollar, D., & Micco, A. 2004. “Port Efficiency, Maritime Transport Costs and Bilateral Trade.” Journal of Development Economics, 2(75), 417-450.
Duiven, F., Schmahl, A., & Tipping, A. 2016. “2016 Commercial Transportation Trends.” Accessed November 06, 2016. http://www.strategyand.pwc.com/perspectives/2016-commercial-transportation-trends
Garnsey, P., Hopkins, K., & Whittaker, C. R. 1983. Trade in the ancient economy. University of California Press.
Heiberg, H. O. 2012. “The merchant fleet: a facilitator of world trade.” The Global Enabling Trade Report 2012.
Manning, S. W., & Hulin, L. 2005. “Maritime commerce and geographies of mobility in the Late Bronze Age of the eastern Mediterranean: problematizations.” The Archaeology of Mediterranean Prehistory, 270-302.
Paine, L. P. 2013. The Sea and Civilization: A Maritime History of the World. New York: Randon House LLC.
Plewes, A. 2015. “5 technologies that can transform shipping.” Accessed November 06, 2016. http://www.orange-business.com/en/blogs/connecting-technology/networks/5-technologies-that-can-transform-shipping
Poulsson, E. (Ed.). 2015. “The Regulation of International Shipping.” Accessed November 07, 2016. http://www.ics-shipping.org/shipping-facts/safety-and-regulation/the-regulation-of-international-shipping
Rodrigue, J-P. 2013. "Ports and Maritime Trade", in B. Warf (ed) Oxford Bibliographies in Geography, New York: Oxford University Press.
Rogers, J. (Ed.). 2014. Review of Maritime Transport 2014. New York: United Nations.
Willis, H. H., & Ortiz, D. 2004. Evaluating the Security of the Global Containerized Supply Chain (Infrastructure, Safety, and Environment). Santa Monica, CA: RAND.
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