The international shipping industry carries 90 percent of world trade. It is the
lifeblood of global economy. There are around 50 thousand merchant ships trading
internationally transporting every kind of cargo. Without shipping,
intercontinental trade, the bulk transport of raw materials, and the import and
export of affordable food and manufactured goods would simply not be possible.
Half the world would starve and the other half would freeze.
Ships are technically sophisticated high value assets that can cost hundreds of
millions of dollars to build. Their safe operation and reliability are crucial
to the continuing health of the world economy. And as world trade grows, the
international shipping industry has responded to the demand of its services.
United Nations estimate show annual freight rates of more than 400 hundred
billion dollars which approximately represents 5 percent of the total global
economy. It is the availability, low cost, and efficiency of maritime transport
that has in large part been responsible for recent dramatic improvement in
global living standard.
The
shipping industry today is truly international flying the flags over 150
different nations and manned by over a million seafarers of most nationalities.
It is also one of the most safest, cleanest and most efficiently run industries.
So, how this has been achieved? It's all thanks to the global frameworks of
regulations, which govern safety and the prevention of pollution. It is vital
that the construction standards, navigational rules and crew qualifications are
consistent among all ships of international trade.
When a ship sails from Brisbane to Buenos Aires, the same rules need to apply at
both ends of the voyage. The alternative would be aware of the conflicting
national regulations and that would be disastrous for both safety and the
efficiency of world trade. Fortunately, shipping is highly regulated at the
global level by United Nations in particular by the London based International
Maritime Organization or IMO. The level of ratification and enforcement of IMO
convention around the world is very high. For instance, the Safety of Life at
Sea Convention or SOLAS and the International Convention for the Prevention of
Pollution by Ships known as MARPOL have been implemented by virtually every
maritime country.
But nations also have the power to detain foreign ships in port if they do not
comply with the regulations. A series sanctions of port state are not afraid to
use. As a result, although the nature and sea means the ships are exposed to
considerable physical risks, the safety record of the shipping industry and its
environmental performance are impressive. Serious maritime accidents have more
than half in the last ten years. At the same time as the amount of maritime
trade has almost doubled. The quantity of oil spilled is now running at less
than 10 percent of the level in the early nineties. And carbon dioxide emissions
from cargo ships are at fraction of the equivalent figure for aircraft.
There is a vide variety of
merchant ships trading internationally and they fall
into a number of categories.
Container ships carry most of the world's
manufactured goods and products usually on scheduled liner services. The latest
generation of container ships can each carry as much as 10,000 heavy trucks.
Bulk carriers, the workhorses of the fleet transport raw materials such as iron
ore, coal and food stuffs. The largest bulk carrier can carry up to 200,000 tons
of grain. That's enough to feed half a million people for a year.
Tankers transport crude oil, chemicals and petroleum products. The largest can
carry over 300,000 tons of oil enough to heat an entire city for a year.
Other types of ships include car carriers, gas carriers, heavy lift vessels and
ships supporting the off-shore oil industry. There are also a large number of
smaller general cargo ships. Ferries usually carry a mixed of passengers, cars
and commercial vehicles over short a distances. And a number of luxury cruise
ships has also grown greatly in recent years. Continuous improvements in
technology and efficiency have made the cost of moving goods by sea very
competitive. Over the last fifty years, US retail prices have risen by almost
700 percent. During the same period, bulk shipping costs have increased by just
70 percent. That's why the typical cost at a pump to a consumer in the United
States of transporting crude oil from the middle east is only half a cent per
liter. And the cost of transporting a ton of iron ore from Australia to Europe
is only about ten dollars. While shipping a can of beer costs about 1 cent.
But over 2/3 of world shipping tonnage is associated with energy and metal
industries. The health of the shipping industry is heavily dependent on them.
More over shipping markets are cyclical and notoriously volatile. And one of the
main tasks of ship-owner is to manage this huge financial risks.
As we've seen, shipping is among the safest and most environmentally friendly
forms of commercial transport. It is amongst the very first industries to adopt
the international safety standards which have been widely implemented through
the international maritime organization.
In recent years, the word has seen a major shift towards industrial production
in Asia. This has in turn brought about a significant improvement in global
standards of living. It is only the international shipping industry and the low
cost and the efficiency of moving goods by sea that has made this possible.
Shipping is indeed the lifeblood of the global economy.
This short film has been made by the International chamber of Shipping which
represents the global industries and body such as IMO. ICS members are national
ship-owners associations, together represent more than 2/3. To find out more,
visit www.shippingfacts.com.
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