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03International maritime trade and logistics

fuNDa yErCaN aND Turkay yIlDIz

Introduction

The concept of logistics has been used in business for more than two dec-ades. Logistics management, as an earlier and limited version of supply chain management until the beginning of the 2000s, covers the physical process of planning, organizing and controlling the flow of materials and services from the supplier’s point to the customer’s as the end point. In addi-tion to these aspects, the concept of supply chain management also includes customer satisfaction, customer relations, financial flow and information flow by making logistics functions a more integrated and complex group of activities. Therefore, logistics support and the interaction of logistics and supply chain management with local and global trade cannot be disregarded. Indeed, as approximately 85 per cent of international trade is carried out by maritime transport (eg ocean transport, seaways and inland waterways), the role of maritime transport is considered to be crucial for global trading.

This chapter of the book focuses on developments in international mari-time transport by emphasizing developments in global trade. The first section of this chapter broadly discusses logistics and its interaction with interna-tional trade. This section provides the general characteristics of logistics and its interrelations with various business areas. The second section builds a background to the interaction between logistics and the transport indus-try in the global economy. The third section then discusses more in-depth developments in the global economy and the maritime transport industry in relation to international trade.

The objectives of this chapter are to:

● describe logistics;

● identify and address global economic growth and integrate it with maritime trade;

MARITIME LOGISTICS_02_SONG_9780749472689.indb 29 10/03/15 7:00 PM

COPYRIGHT MATERIAL NOT TO BE REPRODUCED

Introduction30

● bring forward global trade volumes;

● position international and maritime trade within logistics;

● identify the developments in international maritime trade within international trade;

● enhance the contribution of commodity sectors in order to develop the effectiveness of developed and developing countries as well as transition economies; and

● review international maritime trade networks.

In order to achieve the above-specified objectives, the methodology in this chapter includes a conceptual description of the interrelation of international and maritime trade within global logistics services, using world economic data and a review of developments in the global economy, of international maritime transport by cargo type and of liner shipping connectivity data. The overarching purpose is to explicate the background to international competitiveness in maritime trade routes and cargo types between countries in maritime networks.

Logistics and supply chain management

This section of the chapter provides a general background to logistics and supply chain management. The characteristics and functions in logistics are reviewed and described in order to emphasize its interrelation with interna-tional trade.

The crucial importance of logistics and supply chain management has been highlighted by businesses focusing on the needs and wants of custom-ers, owing to the competition stemming from globalization, specialization and developments in information communication and technology at the beginning of the 2000s. Therefore, in addition to these concepts, functions and stages, concepts of information flow, financial flow and customer rela-tions and functions have also been covered within the supply chain manage-ment concept (Croom et al, 2000; Bowersox et al, 2007).

Supply chain management is a chain management process as long as its links stay connected. Although the strength of each link is sufficient to hold another, the strength of the whole chain depends on the connectivity between all the links. Similarly, suppliers, including their suppliers, manu-facturers, wholesalers, retailers, transporters, distributors and consumers, rely on one another to supply and consume goods and services. Therefore, each link is linked heavily to another in the chain.

Logistics and supply chain management are integrated among vari-ous business functions and progresses, with the aim of minimizing costs, maximizing benefits and profit and thus generating customer satisfaction (Burt et al, 2003). The links within this chain focus on management, plan-ning, the supply of raw materials and/or semi-finished goods, production



International Maritime trade and Logistics 31

planning, the processing of raw materials and/or semi-finished goods, manufacturing, packaging, storing, warehousing, inventory management, distribution, transportation, wholesaling, retailing, marketing, selling and reaching customers as the final consumers (Bowersox et al, 2002). Hence, logistics and supply chain management not only coordinate the activities of finished goods, they also facilitate communications, information technology, humanities and social sciences.

In parallel to developments in international trade, logistics and supply chain management can rapidly transform and develop businesses. Each link within logistics activities and supply chains must be integrated in order to meet the globalization challenge as well as exploit the market conditions domestically and internationally. Based on the foregoing, the next section reviews the role of the transport industry in international trade and global logistics services.

Logistics and transport

This section first describes logistics and then summarizes the challenges in the transport industry within logistics services against the background of a volatile global economy.

Global production, transport, distribution and logistics all require the set-ting of appropriate freight management strategies. Logistics concerns all the activities required for goods to be made available to markets, principally pur-chase, order processing, inventory management and transport (Rodrigue and Browne, 2007). It is taking an increasingly important role in the global econ-omy by supporting a wide variety of commodity chains (Hesse and Rodrigue, 2004). Transport and logistics activities have always been essential since firms started to know and use them. The movement, storage, handling and deliv-ery of goods from one point to another occur until they reach the final user. Transport is more than cars, trains, ferries, vessels, aeroplanes and other vehi-cles. Each raw material needs to be moved until it becomes a semi- finished product and all physical products need to be moved to the points where they are consumed. Transport, which plays a vital role in logistics and supply chain management activities, also has a crucial place within international trade, which relies on the movement of goods from one point to another.

Recently, growing demand for transport and trade has led to globaliza-tion and the development of the global economy, which has directly affected transport and trade facilitation. The period of the late 2000s, and 2008 in particular, was a milestone for the global economy. The global financial crisis ended a period of unprecedented growth in both trade and market demand, and its subsequent effects on the transport and maritime industries have been severe. All actors involved in the maritime industry, shipping, ports and intermodal transport have been forced to reshape their business development models to prepare for the future.



Introduction32

However, these difficulties have been accompanied by considerable opportunities to develop corrective actions that address pre-existing misal-locations. The main players in the transport and maritime industries now consider it to be the time to review established practices, streamline pre-vailing theories and integrate shipping and ports into intermodal transport systems. The next section reviews and analyses global trade, especially in the maritime industry.

global trade and the maritime industry

This section discusses in depth the developments in the global economy and in global trade together with the significance of maritime transport and its interrelations. In this regard, various data on global trade and international maritime trade are presented and reviewed.

After the global financial crisis in late 2008, 2009 witnessed the worst global recession in over seven decades since World War II. Global GDP shrank by 2.2 per cent, with an approximately 13 per cent decline in the total volume of global trade in 2009 and only a 1.8 per cent increase in global economic output between 2007 and 2010 (see Tables 3.1 and 3.2; UNCTAD, 2010, 2013). During these crisis years, the trade patterns in both developed and developing countries altered. In parallel, the import and export volumes of developed economies remained below their pre-crisis lev-els. On the other hand, imports and exports from emerging market econo-mies were 26 and 22 per cent respectively above their pre-crisis levels.

The global economy continues to struggle to return to a strong posi-tion. World output growth was just 2.2 per cent in 2012, and this remained approximately the same in 2013, with 3 per cent expected in 2014 (UNC-TAD, 2013). Moreover, the total volume of merchandise exports dropped seven times more rapidly than global GDP. These changes were related to globalized production processes and the increased trade in parts and com-ponents, the deepening and widening of global supply chains, the product composition of the fall in demand for consumer goods and durables and limited trade finance. Rapid declines in trade volumes also resulted from the trade in goods dropping faster than that in services. Further, weak consumer confidence depressed the retail industry, while the low level of capital invest-ments and slowdowns in the real estate and housing sectors continued in advanced economies.

A global recovery took place by early 2010, with an expansion of 4.1 per cent in GDP and a growth of 9.5 per cent in the total volume of trade based on World Trade Organization estimates of 180 economies around the world. The annual increase in exports from developed economies was about 13 per cent in volume terms in 2010, while the annual increase in shipments from developing economies, Asian countries (14.7 per cent) and China (29.1 per cent) in particular, rose by 16 per cent as the world started to emerge



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Introduction36

from recession. This recovery played a crucial role in the expansion of the total volume of global trade and improvements in the global economy.

However, the global recovery was slower than previous post-recession recoveries, and it was particularly challenged by the uncertainties, fragile economic conditions and political problems and transformations taking place in several Middle Eastern countries at the beginning of 2011. As a result, the annual increase in exports from developed economies dropped to 0.4 per cent in volume terms in 2012, while that from developing econo-mies (Asian countries 1.5 per cent, China 7.2 per cent) was up 3.6 per cent (UNCTAD, 2013).

A growth in international trade positively affects the growth in interna-tional transport services – the second largest category of commercial services after the tourism sector – because of the movement and carriage of goods from suppliers and producers to customers as end-users. Maritime trans-port services are directly driven by global economic growth and the need to carry goods internationally, and thus they are subject to developments in the global economy. In other words, global economic growth directly influences international trade, which, in turn, directly affects transport services and therefore the world’s seaborne trade volumes (as a measure of demand for shipping, port and logistics services). Maritime trade is the most commonly used transport mode in international trade, representing about 85 per cent of total transport volume. As demand for both maritime transport services and logistics services derives from global economic growth and the need to carry out international trade, the global shipping industry and maritime transport activities (notably seaborne trade) could not escape from the con-tractions in global GDP and international trade volumes in 2009.

In parallel with these economic declines and following the collapse in economic growth and international trade, the total volume of international seaborne trade shrank by 4.5 per cent in 2009. The total volume of goods loaded was only 7.8 billion tons in 2009 compared with 8.2 billion tons in 2008. Similar to merchandise trade, however, world trade in commercial services grew in 2012, and the total volume of goods loaded by using mari-time transport services increased to 9.1 billion tons in 2012 (see Table 3.3). Developing countries continued to have the largest share of global seaborne trade with approximately 61 per cent of all goods loaded and 55 per cent of all goods unloaded, reflecting their increasingly leading role in driving global trade. The share of developed economies in global goods loaded and unloaded was 32 and 44 per cent respectively, while transition economies accounted for only 6.4 and 0.8 per cent respectively (UNCTAD, 2010).

After the recession in 2008, world shipments of tanker trade volumes, including crude oil, petroleum products and liquefied natural gas (LNG), fell by 3 per cent in 2009. As also illustrated in Table 3.3, total tanker cargoes loaded amounted to 2.73 billion tons in 2008 and this dropped to 2.64 bil-lion tons in 2009, before slightly increasing to 2.83 billion tons in 2012. The major oil producers including the OPEC countries of western Asia were the largest loading areas for crude oil together with transition economies, with




South-east Asia, Central Africa, the northern and eastern coasts of South America, North and West Africa and Central America the major producers and consumers of oil and gas. The major unloading areas included North America, Europe, Japan and South-east Asia. With the strong demand in oil from China, India, western Asia and Latin America, crude oil shipments to these regions started to grow rapidly. In terms of the total volume of cargoes loaded regardless of their type, global seaborne trade loaded dropped from 8.2 billion tons in 2008 to 7.8 billion tons in 2009, before rising to 9.17 bil-lion tons in 2012 (UNCTAD, 2013). The total volumes of world seaborne trade by type of cargo loaded and unloaded together with country groups between 2006 and 2012 and world merchant fleet tonnage surplus by main type of vessel in the maritime transport industry are illustrated in Tables 3.4 and 3.5 respectively.

The year 2009 was the most challenging in the history of the con-tainer industry with dramatic declines. Container trade volumes declined sharply by 9 per cent, totalling 124 million 20-foot equivalent units (TEU)

TablE 3.3 Development of international seaborne trade 1970–2012 (millions of tons loaded)

Year Oil Main bulksa Other dry cargoTotal

(all cargoes)

1970 1,442 448 676 2,566

1980 1,871 796 1,037 3,704

1990 1,755 968 1,285 4,008

2000 2,163 1,288 2,533 5,984

2006 2,698 1,849 3,135 7,682

2007 2,747 1,972 3,265 7,983

2008 2,732 2,079 3,399 8,210

2009 2,642 2,085 3,131 7,858

2010 2,772 2,335 3,302 8,409

2011 2,794 2,486 3,505 8,784

2012 2,836 2,665 3,664 9,165

sourCe Compiled by the UNCTAD secretariat on the basis of data supplied by reporting countries as published on the relevant government and port industry websites, and by specialist sources. The data for 2006 onwards have been revised and updated to reflect improved reporting, including more recent figures and better information regarding the breakdown by cargo type.notea. Iron ore, grain, coal, bauxite/alumina and phosphate. The data for 2006 onwards are based on Dry Bulk Trade Outlook produced by Clarkson research Services Limited.



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5.1

4,00

7.9

1,25

1.1

523.

82,

233.

0

2009

2,54

0.1

118.

635

5.0

2,06

6.5

3,49

9.8

1,14

9.8

529.

41,

820.

6

2010

2,86

5.4

135.

942

2.3

2,30

7.3

3,60

4.5

1,16

5.4

522.

61,

916.

5

2011

2,98

2.5

117.

545

1.9

2,41

3.1

3,63

2.3

1,08

5.6

581.

31,

965.

4

2012

3,16

2.9

121.

644

7.3

2,59

4.0

3,67

8.8

1,09

7.7

573.

72,

007.

5



Tran

siti

on

eco

no

mie

s

2006

410.

312

3.1

41.3

245.

970

.65.

63.

161

.9

2007

407.

912

4.4

39.9

243.

776

.87.

33.

566

.0

2008

431.

513

8.2

36.7

256.

689

.36.

33.

879

.2

2009

501.

815

1.3

41.6

309.

060

.56.

13.

051

.4

2010

515.

715

0.2

45.9

319.

712

2.1

3.5

4.6

114.

0

2011

505.

013

2.6

42.0

330.

515

6.7

4.2

4.4

148.

1

2012

542.

113

6.6

41.1

364.

414

9.2

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141.

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Dev

elo

pin

g

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4,81

1.5

1,52

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537.

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664

3.4

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52,

651.

6

2007

4,96

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1,55

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530.

72,

882.

04,

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974

2.2

376.

82,

949.

8

2008

5,07

0.2

1,51

7.9

515.

93,

036.

44,

175.

568

4.7

436.

53,

054.

3

2009

4,80

0.8

1,45

4.6

528.

02,

818.

24,

348.

172

1.9

424.

83,

201.

3

2010

5,02

7.8

1,50

1.6

515.

63,

010.

54,

717.

376

4.4

452.

03,

500.

9

2011

5,29

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1,50

9.4

540.

43,

247.

05,

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880

6.7

452.

13,

750.

0

2012

5,46

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1,52

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562.

53,

370.

65,

355.

782

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24,

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2

afr

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704.

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3.8

86.0

264.

235

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5

2007

708.

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81.8

264.

637

5.9

45.5

45.0

285.

3

2008

741.

937

9.2

83.5

279.

336

6.1

44.8

44.2

277.

0

2009

682.

133

5.0

82.8

264.

436

5.6

43.7

42.7

279.

2

2010

754.

035

1.1

92.0

310.

941

6.9

42.7

40.5

333.

7

2011

723.

733

8.0

68.5

317.

237

8.2

37.8

46.3

294.

1

2012

787.

337

0.1

72.6

344.

640

7.7

35.9

51.7

320.

1

(Con

tinue

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Co

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try

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Year

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3.7

2007

1,06

7.1

252.

390

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4.2

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976

.064

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5.9

2008

1,11

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234.

693

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4.6

433.

874

.266

.929

2.7

2009

1,05

0.6

219.

489

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1.7

387.

074

.265

.424

7.5

2010

1,17

2.6

241.

685

.184

6.0

448.

769

.974

.730

4.2

2011

1,23

9.2

253.

883

.590

1.9

508.

371

.173

.936

3.4

2012

1,28

7.2

250.

791

.694

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538.

577

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asi

a

2006

3,07

3.1

921.

235

7.0

1,79

4.8

2,90

6.8

552.

724

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5.3

2007

3,18

7.1

938.

135

8.1

1,89

0.8

3,26

3.6

620.

726

0.8

2,38

2.1

2008

3,21

1.8

902.

733

9.3

1,96

9.9

3,36

1.9

565.

631

8.3

2,47

7.9

2009

3,06

1.7

898.

735

5.5

1,80

7.5

3,58

2.4

604.

131

3.1

2,66

5.2

2010

3,09

4.6

907.

533

8.3

1,84

8.8

3,83

8.2

651.

833

3.1

2,85

3.4

2011

3,32

6.7

916.

038

8.2

2,02

2.6

4,10

8.8

697.

832

8.0

3,08

2.9

2012

3,37

6.7

904.

739

7.5

2,07

4.5

4,39

6.2

713.

834

1.5

3,34

0.9

Oce

ania

2006

3.8

1.2

0.1

2.5

12.9

0.0

6.7

6.2

2007

3.5

0.9

0.1

2.5

13.5

0.0

7.0

6.5

2008

4.2

1.5

0.1

2.6

13.8

0.0

7.1

6.7

2009

6.3

1.5

0.2

4.6

13.1

0.0

3.6

9.5

2010

6.5

1.5

0.2

4.8

13.4

0.0

3.7

9.7

2011

7.1

1.6

0.2

5.3

13.5

0.0

3.9

9.6

2012

9.0

1.6

0.8

6.6

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8.6

s ou

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bl

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ld m

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onna

ge s

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type

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wee

n 19

90 a

nd 2

010

(in

mill

ions

of d

wt o

r m

illio

ns o

f cub

ic m

eter

s)

1990

2000

2004

2005

2006

2007

2008

2009

1 a

pr

2010

Wo

rld

tan

ker

flee

t (d

wt)

266.

227

9.4

298.

331

2.9

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33

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t)40

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814

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dry

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t (d

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Wo

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nd

2010

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trad

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utes

20

08–

2012

(mill

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of T

EUs

and

annu

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perc

enta

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hang

e)

Year

sa

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h

am

eric

a

2008

13.4

3.3

6.9

13.5

5.2

3.3

2009

10.6

6.1

11.5

5.5

2.8

2.5

% c

han

ge

2008

–200

9

20.9

84.8

66.7

59

.3

46.2

24

.2

2010

12.3

6.5

13.3

5.7

3.2

2.7

2011

12.4

6.6

14.1

6.2

3.4

2.8

2012

13.3

6.9

13.7

6.3

3.6

2.7

% c

han

ge

2011

–201

27.

34.

5

2.8

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5.9

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6

sou

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ww

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Ta

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aine

r po

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4–20

12 (m

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n TE

U)

eco

no

mie

s/r

egio

ns

2004

2005

2006

2007

2008

2009

2010

2011

2012

Eas

t Asi

a &

Pac

ific

(dev

elop

ing

only

)10

2.4

96.2

114.

813

9.5

155.

7314

7.75

175.

3319

2.52

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67

Eas

t Asi

a &

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ific

(all

inco

me

leve

ls)

174.

219

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1.36

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Eur

ope

& C

entr

al A

sia

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ls)

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81.3

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083

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94.5

410

1.49

104.

18

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o ar

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.75

66.6

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7.65

280.

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)41

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.52

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351

.43

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143.

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1.3

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30

Hig

h in

com

e: n

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106.

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EC

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3.7

152.

716

2.0

176.

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2.69

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CD

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bers

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190.

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93

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th A

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414

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ld33

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ld B

ank

Dat

a B

ank

2013

; 20

10




or 1.19 billion tons in 2009. The global financial crisis and economic reces-sion contracted demand for consumer and manufactured goods and dura-bles. Table 3.6 illustrates the cargo flows on the major East–West container trade routes in the world. The annual percentage changes between 2008 and 2009 illustrate the declines on most major trade routes, with the dramatic increase of 84.8 per cent in Atlantic container trade between the USA and Europe one notable exception. Another was the annual increase of 66.7 per cent in container trade between North America and Asia. These dramatic changes settled down at the end of 2012 with percentage changes between 2011 and 2012 from 1.6 to 7.3 per cent, mostly in trans-Pacific container trade (with the exception of a decline of -2.8 per cent in container trade between North America and Asia).

More specifically, Table 3.7 and Figure 3.1 give an idea of the recent container port traffic in total number of TEU as 20-foot-equivalent units by

fIgurE 3.1 Container port traffic 2008–2012 (million TEU)

700

600

500

400

300

200

100

WLD

0

2008 2009 2010 2011 2012

EA

S

HIC

LMY

MIC

UM

C

OE

D

EA

P

OE

C

NO

C

EC

S

EU

U

EM

U

LMC

ME

A

LCN

LAC

SA

S

MN

A

Country Code Country nameWLD WorldEAS East Asia & Pacific (all income levels)HIC High incomeLMY Low & middle incomeMIC Middle incomeUMC Upper middle incomeOED OECD membersEAP East Asia & Pacific (developing only)OEC High income: OECDNOC High income: non-OECDECS Europe & Central Asia (all income

levels)

Country Code Country nameEUU European Union EMU Euro areaLMC Lower middle incomeMEA Middle East & North Africa

(all income levels)LCN Latin America & Caribbean

(all income levels)LAC Latin America & Caribbean

(developing only)SAS South AsiaMNA Middle East & North Africa

(developing only)

note



Introduction46

region between 2004 and 2012. In this table, the development of container port traffic is specified by different regions East Asia and the Pacific, the European Union, Europe and Central Asia, Latin America and the Carib-bean, the Middle East and North Africa, OECD members and South Asia) and different income levels. In terms of the total number of TEU, container traffic in East Asia and the Pacific reflects that to and from its leading ports, such as Hong Kong and Singapore.

Despite these challenging developments, container shipping and interna-tional maritime trade had started to recover from the global economic down-turn by 2010. By mid-2010, gradual growth had emerged and increases in total trade volumes had started to be recorded, especially to and from China.

By the beginning of 2010, the total world merchant fleet had expanded by an impressive 7 per cent to reach 1.276 billion deadweight tonnes (dwt). In addition, world container throughput declined by about 9 per cent to 465 million TEU in 2009, while total container trade in world seaborne trade was forecast to increase by 11.5 per cent by the end of 2010.

Liner shipping is defined as a vessel carrying passengers and cargo that operates on a route with a fixed schedule (Hinkelman, 2009). Liner shipping emerged from the establishment of regular steamship lines on regular sched-ules, calling at many ports at specific dates and times. The main advantages of liner companies are their regularity and organization at a wide range of ports regardless of the existence of cargoes (Pamuk, 2000). Liner shipping is used for general cargo on fixed trade routes and on a fixed timetable. The United Nations Conference on Trade and Development (UNCTAD) notes that access to high-frequency, reliable and low-cost liner shipping services largely determines a country’s connectivity to overseas markets and thus its competitiveness globally (Hoekman, 2006; World Bank, 2007).

The configuration of liner shipping networks is important not only to shipping lines, but also for the structure of such networks. The relative position of a port on the network has a significant impact on the level of transport costs (Marquez et al, 2006; Wilmsmeier and Hoffmann, 2008; Wilmsmeier and Notteboom, 2009a). Therefore, the location of a port within the network becomes strategic to ensure trade competitiveness, which raises important questions about the determinants that lead to the configuration of current networks and about how these could be influenced (Wilmsmeier and Notteboom, 2009a).

Demand for containerized transport also affects the development of liner shipping networks. The routing of containerized trade flows depends on the strategies of shipping companies and demand of shippers for specific service characteristics. As such, the location of a port or a region within the global liner shipping network is determined by the density of trade flows to and from a specific port or region (Wilmsmeier and Notteboom, 2009b).

The Liner Shipping Connectivity Index scores from 2004 to 2013 pre-sented in Table 3.8 suggest how well countries are connected to global shipping networks. This index is based on five components of the mari-time transport sector: number of ships, container-carrying capacity of ships,



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maximum vessel size, number of services and number of companies that deploy container ships to a country’s port. The index is fixed in 2004 to the value of 100 (ie the country with the highest score). China leads the connectivity index with a considerable gap to its nearest countries, namely Hong Kong and Singapore. Table 3.8 presents the liner shipping connectiv-ity values of the top 40 countries.

Countries actively involved in trade have the highest liner shipping con-nectivity values. For instance, the export-oriented economies of China and Hong Kong are ranked first, with the transhipment hub of Singapore third. Large traders such as Korea (4), Malaysia (5), the USA (6), Germany (7), the UK (8) and Japan (15) are also ranked among the top 15. Countries such as France (11), Spain (12), the United Arab Emirates (14), Saudi Arabia (16), Egypt (17), Morocco (18) and Turkey (19) also rank high because of the major transhipment functions performed by their ports, as also illustrated by Figure 3.2. As shown in this figure, China, Hong Kong and Singapore are the outlier countries of the index because they have significantly higher scores than their nearest followers.

fIgurE 3.2 Bag plot of the liner shipping connectivity index (2013)

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Introduction50

Transport connectivity is the main determinant of countries’ access to world markets, especially as regards regular shipping services for the import and export of manufactured goods (UNCTAD reviews, 2013). Based on UNCTAD reports on liner shipping connectivity indices, com-panies that operate container shipping are considered to be less likely to provide services to and from the seaports of least developed countries (LDCs), because national trade volumes tend to be lower and a lower level of development will often make ports less attractive for the transhipment and transit of cargo. UNCTAD’s Liner Shipping Connectivity Index shows that the average ranking of LDCs in 2010 was 111 compared with 78 for other developing countries and 64 for developed countries. This rating shows that LDCs remain isolated from major or frequently used shipping routes.

In summary, after falling global demand following the contractions in global GDP, world seaborne trade volumes started to improve in 2008, with reflections of the emerging recovery in the global economy in 2009 and 2010, reaching 9.165 billion tons in 2012 (UNCTAD, 2013).

Discussion and conclusion

The global economy continues to recover from its worst crisis since World War II. After a slowdown in 2008, positive growth rates returned to some developed and developing economies in 2009. Moreover, global GDP expanded by about 4.1 per cent in 2010, meaning a return to pre-crisis growth rates in most regions and an exit from recession. The annual increase in GDP remained at 2.2 per cent in 2012 and 2.1 per cent in 2013.

International transport, maritime transport services in particular, has direct relationships with the overall performance of the global economy as well as with the total volume of trade. Seaborne trade in the international maritime transport industry, which comprises approximately 85 per cent of global trade, directly reflects the developments in the global economy and in international trade. In parallel, the industry continues to face problems in order to keep employed its rapidly growing capacity of very large ships during economic crisis periods.

This chapter described maritime logistics services and the interrelation of international maritime trade within global trade. More specifically, it reviewed developments in global trade and international seaborne trade within the maritime transport industry, as the most common way of transporting goods through the supply chain, by providing a back-ground to the carriage of commodity goods in developing and developed economies. Global economic growth and integration with maritime trade were also emphasized and analysed by reviewing the shipping connectiv-ity index of shipping networks and major maritime trade routes around the world.




In summary, maritime trade within international trade and logistics ser-vices has always been directly affected by the global economy because the majority of goods traded internationally are carried and transported by maritime transportation. Therefore, global demand and the total volume of world trade are influenced by the world’s current economic status.

referencesBowersox, DJ, Closs, DJ and Cooper, MB (2002) Supply Chain Logistics

Management, p 656, McGraw Hill, BostonBowersox, DJ, Closs, DJ and Cooper, MB (2007) Supply Chain Logistics

Management, 2nd edn, p 410, McGraw Hill, BostonBurt, DN, Dobler, DW and Starling, SL (2003) World Class Supply Management:

The key to supply chain management, 7th edn, p 689, McGraw Hill, BostonContainerisation International (2011) August, pp 4–5, UKCroom, S, Romano, P and Giannakis, M (2000) Supply chain management: An

analytical framework for critical literature review, European Journal of Purchasing and Supply Management, 6, pp 67–83

European Liner Affairs Association (ELAA) http://www.elaa.net [accessed September 2010]

Hesse, M and Rodrigue, JP (2004) The transport geography of logistics and freight distribution, Journal of Transport Geography, 12(3), pp 171–84

Hinkelman, EG (2009) Glossary of International Trade: Transaction, banking, shipping, legal and other terms used in international trade, 5th edn, p 112, World Trade Press, Petaluma, CA

Hoekman, B (ed) (2006) Economic Development and Multilateral Trade Cooperation, p 235, Herndon, World Bank Publications, VA

Lloyds List, www.containershipping.comMarquez, RL, Martinez ZI, Perez, GE and Wilmsmeier, G (2006) The

Interrelationship of Maritime Network Connectivity, Transport Costs and Maritime Trade, 14th Annual Congress of the International Association of Maritime Economists (IAME) in Melbourne, 3–5 July

Pamuk, S (2000) Mediterranean Response to Globalization Before 1950, p 246, Routledge, London

Rodrigue, JP and Browne, M (2007) International Maritime Freight Movements, in Transport Geographies: Mobilities, flows and spaces, eds R Knowles, J Shaw and I Docherty, p 320, Wiley-Blackwell Publishing

United Nations (UN) (2010) World Economic Situation and Prospects as of Mid-2010 (E/2010/73), available from http://www.un.org/esa/policy/wess/wesp2010files/wesp10update.pdf

UN (2013) World Economic Situation and Prospects: 2013, United Nations Publication, New York

United Nations Conference on Trade and Development (UNCTAD) (2010), Review of Maritime Transport: 2010, United Nations Publication, New York

UNCTAD (2013) Trade and Development Report: 2013, United Nations Publication, New York



Introduction52

Wilmsmeier, G and Hoffmann, J (2008) Liner shipping connectivity and port infrastructure as determinants of freight rates in the Caribbean, Maritime Economics and Logistics, 10, pp 130–51

Wilmsmeier, G and Notteboom, T (2009a) Determinants of liner shippping network configuration: A two-region comparison, GeoJournal, 0343–2521, pp 1–16

Wilmsmeier, G and Notteboom, T (2009b) Determinants of liner shipping network configuration, Conference Proceedings, International Conference of International Association of Maritime Economists (IAME), Copenhagen, Denmark, 24–26 June

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