Ports and Maritime Trade

A Fundamental Role in Global Trade

Maritime transportation is as old as global trade, and historically, the scope and extent of longdistance trade were determined by developments in maritime transportation technology. Between the 16th and 19th centuries, the galleon was the linchpin of long-distance colonial trade, and the refinement of sailing technology led to fast clipper ships in the mid 19th century, which essentially reflected the optimal in wind-propelled maritime technology. Clipper ships were, however, shortlived and were supplanted by steamships, which led to a remarkable specialization of ship function with liners, battleships, cargo ships, tankers, and containerships, to name just a few. Yet the role of maritime transportation in the movement of passengers is marginal; it is almost exclusively the domain of freight. International trade and seaborne trade are thus interrelated. In 2006, seaborne trade accounted for about 90% of global trade in terms of volume and 70% in terms of value.

Maritime transportation rests on the existence of regular itineraries, better known as maritime routes. They draw arcs on Earth's water surface, as intercontinental maritime transportation tries to follow the great circle distance. Maritime transportation operates in a space that is at the same time geographical with respect to its physical attributes, strategic by virtue of its military importance, and commercial in its usage. While geographical considerations tend to be constant in time, strategic and especially commercial considerations are much more dynamic. For instance, strong industrial growth in Pacific Asia has been accompanied by a surge in port activities along the Chinese coast as well as growth along transPacific and trans-Indian Ocean shipping routes.

Shipping has traditionally faced two drawbacks. It is slow, with speeds at sea averaging 15 knots (26 kilometers per hour). Second, delays are encountered in ports where loading and unloading take place. The latter may require several days of handling when break-bulk cargo (that which is not containerized) is involved. These drawbacks are particularly constraining when goods have to be moved over short distances or when shippers require rapid service deliveries. However, technical improvements tend to blur the distinction between bulk and break-bulk cargo, as both can be unitized on pallets and increasingly in containers. For instance, it is possible, and increasingly common, to ship grain and oil, both bulk cargoes, in containers. Maritime shipping is dominated by bulk cargo, such as petroleum, minerals, and grains, which combined account for roughly 70% of total tonmiles shipped. These flows supply the world's energy generation, manufacturing, and food transformation systems. The share of break-bulk cargo is decreasing steadily, mainly because of containerization. Consequently, the amount of containerized freight has grown substantially, and the majority of the global shipment of manufactured goods is now carried in containers; the 20-foot-equivalent unit, or TEU, is a common measure of volume.

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