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How shipping industry functions?

Apr. 05, 2011 5:09 AM ET
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Shipping industry has its benefits closely associated with monetary gains and various countries find their source revenues in this industry. Shipping industry has deep roots way before air freight came into existence. This has been primary means of cargo transit since olden days. Imports and exports of countries saw new heights with development of air cargo services.

Shipping industry is regulated under the protocols of International Maritime Organization. The main aim of shipping industry is to transport cargo from particular sea routes to various corners of globe. Classification simplifies work and concept easy to understand. In shipping industry also merchandise is segregated as dry bulk, wet bulk and liners.

Dry bulk: This type of cargo involves transportation of iron ore and other similar raw metal products.

Wet bulk: This kind of cargo will basically involve transportation of petroleum products and chemicals which are into highly fragile category.

The general small cargo which we transfer is part of liners category.

The demand for industrial raw materials increase if the growth of country is immense. Shipping industry is cyclic as shipping quotes vary over some factors. Transporting goods via sea shipping is safe, except the Somalia coast keeping environmental and cost factors unaffected. Shipping industry was first to adopt international safety features which is regulated by United Nations organizations. One should regularly modernize, expand standards and make it competitive.
Shipping industry must have more specialization in specific handling of goods. Consignments require different containers, handling devices and forms of ships should also collaborate with type of consignment. If companies today offer such services then the freight quote Is generally volatile with various private players playing shipping game.

Aspects of shipping industry

The fluctuations in prices are seen with sudden demand and supply in markets. There are several drivers which are responsible for driving the major aspects of industry like the cost, speed, Geographical concentration, threat of natural sea disasters (recent one like devastating Tsunami in Japan) which has made world rethink on sea shipping security with various new technology.

Supply drivers are few which require due attention by following with care. Supply drivers function by scrapping of existing tonnage of new shipping building orders.

  • Wet and dry bulk
  • Unpredictable climatic conditions
  • Government restrictions on shipment

The overall costs of sea shipping is lower than its highly established siblings, ocean and air freight. Hence, sea shipping is more regulated by IMO. Today, the shipping quote in this industry has come down more due to the huge capacity short containers which results in less cost to consumer. As sea shipping is mostly door-to-door service hence, the price is inclusive of all transfers. Lower costs and simple action services has made sea shipping industry boom and sought after option.


The speed is another competitive factor with air cargo services, due to organized port procedures, low traffic and absolute vacancy in terms of road construction works etc. With advent of technology it's expected that shipping will turn out to be fastest form of services from source to destination and transporting goods will be greatly enhanced with package of low price and speedy services. Remarkable!
Sea shipping industry is historical but very relevant till date. Goods transport application between Europe and UK is commendable, making shipping companies of world come closer for further advanced services.

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