Shipping and global trade
For Shipping to exist in the world there is great need of global trade and on the other side global trade also is so much dependent in shipping industry.
Shipping is the backbone of global trade, around 80% of world trade in goods is carried by the international shipping industry. European shipowners’ control 40% of the world’s merchant fleet and operate shipping services all over the world.
Shipping is the life blood of the global economy. Without shipping, intercontinental trade, the bulk transport of raw materials, and the import/export of affordable food and manufactured goods would simply not be possible. Tankers, bulk carriers and container ships are today’s most important means of transportation and each year carry billions of tonnes of goods along a few principal trade routes.
The main reason behind the massive increase in shipping has been the growth in world trade. But institutional and technological factors also had a role to play in the worldwide business or trade link between nations
Everybody in the world benefits from shipping, yet few people realize it. We ship food, technology, medicines, and memories. As the world’s population continues to grow, particularly in developing countries, low-cost and efficient maritime transport has an essential role to play in growth and sustainable development.
Shipping helps ensure that the benefits of trade and commerce are more evenly spread. No country is entirely self-sufficient, and every country relies on maritime trade to sell what it has and buy what it needs. Much of what we use and consume in our everyday lives either has been or will be transported by sea, in the form of raw materials, components or finished articles.
In conclusion the shipping business is essential to the development of economic activities as international trade needs ships to transport cargoes from places of production to places of consumption.