Shipping Essay

1767 words - 8 pages

Exclusive Summary
Shipping has been an important human activity, especially where prosperity depended primarily on international trade and interregional trade. Transportation has been one of the main factors of globalization, along with communications, international standardization, and trade liberalization. Due to a number of technological, economic, and socio-cultural forces, only limited country can keep itself fully isolated from the economic activities of other countries. Many countries have seen enormous economic growth in the recent past due to their willingness to open their borders and markets to foreign investment and trade. This increased flow of knowledge, resources, goods, and ...view middle of the document...

Sea transport is used for external relations. Only in some countries such as USA, Russia, China, Canada, Turkey, France, maritime transport provides internal transportation. This transport carries more than 80% foreign trade goods. This is the cheapest mode of transport because the exploitation of maritime requires greater network costs, as in other types of transport. Modern ships can carry cargo of any size and weight.

Maritime Transportation Impacts on Economy
Studying 2 of the world busiest ports (China and Singapore) provide evidence that maritime transport has an important part to play in their country respective economies.
In the 1980s, Singapore acts as a regional processing and distribution center. Re-exports’ share of total exports averaged 35 percent from 1980 – 1987. Although primary commodities were still a factor in trading activities, machinery and transportation equipment dominated. Singapore also served as a back door to trade with Asian communist countries for third world countries, such as Indonesia.
Trade, along with the rest of the economy, reasserted itself by 1987, resulting partly from government economic decisions and partly as a reflection of rising world commodity prices. In 1988 Singapore’s total trade amounted to about S$167.3 billion, with a global trade deficit of about S$8.18billion. Singapore’s GDP grew by 10.8percent in 1988, the best growth rate in fifteen years.
Trade in goods and services was Singapore ‘s life blood as truly in 1989 as it was in the early twentieth century or a century earlier when the British East India Company first began business there. Trade, along with domestic savings and foreign investment, remained key to the country’s growth. It was one of the world’s few countries where total international trade was greater than total GDP. In 1988 trade was more than three times GDP, and two-thirds of the goods and services Singapore produced were exported.
The Singapore marine industry has seen significant growth over the last 30 years, evolving from a small regional ship repair and building centre into a world-class industry that services international clientele. The industry includes ship repair, ship building, rig building and offshore engineering, and other marine supporting services.
Globally renowned for its reliable and convenient range of comprehensive marine services, Singapore is a one-stop marine centre for ship owners, managers and agents around the world. Generating an annual turnover of $3 billion and employing some 30,000 workers, the marine industry plays a crucial part in Singapore's economic growth. Ship repair and conversion form the backbone of the local marine industry, accounting for about 60% of the total revenue.
Singapore is also well supported by its strategic geographic, location and comprehensive and integrated marine infrastructure services. The marine industry has contributed to the economic development of Singapore for the last 30 years. It...

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