Unit 2 Flashcards
What has led to growth in global trade? How has the value of world trade changed overtime?
globalisation and increased population growth
- 1950 value = $61 billion
- 2017 value = $17.7 trillion
Who had the initial idea for containerisation?
Malcolm Mclean
What is containerisation and how does it work?
system of using steel containers with standardised dimensions, they can be loaded, stacked, transported from one mode of transport to another without being opened
What is the name of pre-containerisation form of loading and unloading ships called and how long does it usually take?
Break - bulk shipping, takes approx. 2 weeks for loading and unloading
Modern container ships will 1000+ containers can be loaded/unloaded in how long?
12 hours
When did the first ships start operating with containers?
1956
Why was there a dramatic increase by the 1960’s of the use of containers?
insurance costs almost halved
port labour productivity (tonnes per hour) increased from 1.7 to 30 in 1970
What is a chokepoint?
point of congestion along shipping routes where narrow channels of shipping having high traffic because of their strategic locations
What are the five largest importing countries?
U.S.A, E.U, China, Germany, Japan
What are the five largest exporting countries?
China, U.S.A, U.K, Germany, France
Name 3 chokepoints in the world?
Panama Canal, Suez Canal, English Channel
How many containers pass through the Panama Canal each week?
32 to 36 ships a day
Why is the Panama Canal important?
Saves ships a large travel distance by providing a short route for ships passing inbetween the Americas
What may lead to a reduction in global shipping?
Major container companies have been consolidated through mergers, making them more efficient, as there are less competitors
reduces costs as companies share workers e.g. ocean alliance
Which body manage and regulate shipping?
UNCLOS -United Nations Conventions on Laws Of the Sea
UNCLOS also manage oil pollution. What was the Torrey Canyon disaster in 1967?
Affected the coasts of the U.K and France, where the tanker struck rocks on the north east of the Isle of Scilly
released 119000 tonnes of oil
resulted in 15000 dead seabirds
200km of coastline contaminated
What where the 2 regulations applied directly to oil tankers by UNCLOS?
- Oil tanker construction
- Tanker flushing
What is oil tanker construction?
UNCLOS banned single-hull tankers, which cane into effect on 1st September 2003
(only double-hull allowed)
Did oil tanker construction work in reducing oil spills?
Total quantity of oil spilled (tonnes)
1990’s = over 1 million
2000’s = <200,000
Why does making ships double-hulled reduce incidence of oil spills?
hull within hull provides extra measure of security
event of collision = outer hull bears the brunt of impact, whilst the interior keeps cargo secure
What does tanker flushing mean?
oil tankers may be required to transport diff types of oil, necessary to clean (flush) the tanks between cargo
How does tanker flushing work?
originally high pressure, hot seawater jets were used to clean, and the mixture was discharged into sea
made illegal in 1978 - to reduce oil pollution
What are two key security issues affecting maritime trade?
- Piracy
- Smuggling and Illicit trade
How much of world oil production moves via oil tankers?
60%
What is piracy and what does it affect?
chokepoints are essential for the world’s economy, have high value and disruption can cause rise in prices, pirates target these chokepoints to get ahold of good to ransom/steal
In 2011 what was the cost of stolen proterty and ransom payments made by shipping companies?
estimated us$10 billion
What is the piracy case study?
Somalia
Why has this region been affected with piracy?
apart from the quantity and value of shipping around the coast (because of the Suez Canal near) there are reasons this country in particular suffers with this problem
What political factors have led to severe piracy in Somalia?
- no unified central government
- North = independent but unrecognised states
What are the Socio - economic factors that have led to severe piracy in Somalia?
- 3 decade civil long war = drought, famin, without unified government
- 55 year life expectancy
- little education/healthcare GDP = $104
What are the economic rewards of piracy?
Rarely touch the cargo crew = valuable - autocomms
as time goes on value of ship and cargo decreases, and average ransom increases
What is NATO; Operation Ocean Shield?
What is it used for?
Use to manage Somali piracy
- focuses on the Indian Ocean
- Uses fine hoses, electric fences and slippery surfaces
- contributed to overall improvement
What are some examples of security measures on ships?
- dazzle gun, temporarily impairs vision
- Long range acoustic device, provides warning of 500 meters, designed to efficiently communicate with authorities
What is meant by illicit trade?
moving goods and services that are deemed illegal, as they are threatening to society
What are the estimated annual profit of illicit trade?
by UN to be $870 billion
(1.5% of global GDP)
What are the possible impacts of illicit trade?
- Health and Safety = fake medicines, food, narcotics
- Environment = endangered species, illegal logging
- Exploitation = forced human trafficking, prostitution and slavery
- Terrorism = financing criminality
- Government = reduction of tax revenues and legitimate employment
In 2015 how much was made by human trafficking?
$50 + billion
What is the definition of human trafficking?
involves movement and exploitation of a person into forms of modern slavery
What is the definition of migrant smuggling?
involves the illegal movement of a person for a fee
Why is the mediterranean sea route a hotspot for both forms of human movement?
- over 90% of illegal migrants crossing the sea use criminal networks
- in 2015 it is estimated that migrant smuggling generated over 3billion euros for criminal groups
Why does trafficking occur?
for specific purposes such as sexual exploitation, labour exploitation, organ removal
Why does migrant smuggling occur?
to avoid paying customs duties and taxes, allows illegal things like drugs, weapons
poverty or desperate to flee
Provide a brief summary of Mediterranean crisis (European Migrant Crisis)
According to UN in 2015 most people arriving where refugees
49% from Syria = they flee due to war, lack of services, too dangerous for children
= pay $2000 for adults
= pay $1000 for children
What are the push and pull factors for the Syrian migrants?
push = conflict, lack of services/education
pull = no war, more opportunites
Why are Syrian’s more vulnerable to traffickers?
desperate, willing to risk their lives they deem they are in more danger is they stay
Since April 2015, the E.U has been struggling to cope with this crisis, so they put measures in place.
- increasing funding for border control
- devising plans to mitigate smuggling
- new quota system to relocate asylum seekers among EU states to alleviate burden on countries on outer borders of Union
What is operation Sophia (2015)?
combines resources of several EU states, including U.K, effort to save stricken migrant vessels, combat illegal crossing and deter people-smugglers
What was the difference between 2016 missing migrants from Mediterranean and 2023?
2016 = 5136
2023 = 1166
What is global communication reliant on?
Seafloor data cables
When where the first cables laid and when did fibre optic cables first laid?
The first telephone conversation laid in 1950’s
The fibre optic cables were laid in the 1990’s, capable of transferring mass amounts of data
Who has ownership over seafloor cables?
they were laid and owned by governments, however today MNC’s own much of the infrastructure,
e.g. Microsoft and Facebook jointly funded ‘Marea Cable’
- 6600km cable linking the USA and Europe
How have seafloor data cables recently expanded and grown?
1.2 million km of seafloor data cables
Since 2012, the number of submarine cables has more than doubled from 150 to 400
How can the distribution of seafloor data cables affect future economic development of countries?
LANDLOCKED countries have severely limited access which could affect their development
the fewer cables a country has the more vulnerable they are to cyber security attacks
How do seafloor data cables improve a countries economy?
When country becomes developed, more data cables need to be put into place. Influences access to digital infrastructure, international trade, FDI, attractiveness and resilience to disruptions
What are the human factors that influence the distribution of cables?
- population density/demand
- local policies
- skilled labour and expense
What are the physical factors that influence the distribution of cables?
- underwater terrain and tectonic plate boundaries
- water depth
- ecosystems
How have MNC’s reduced their operational costs?
(role of seafloor cables on globalisation)
by ‘outsourcing’ service jobs to developing countries.
e.g. India, has vast tertiary and quaternary economic growth due to outsourcing jobs
Provide 2 examples of how outsourcing jobs to India has resulted in increased digital connectivity?
- Teleradiology = employs over 50 radiologists
(scanning custom made photo books)
to countries such as U.S.A and Europe - medical research, financial services, engineers and graphic design
Why are there risks to using seafloor data cables?
400+ cables around the world
financial systems would collapse, breakages happen as often as 200x a year
How can anchors and trawling lead to damaging data cables?
ships dragging nets and anchors accounts for two thirds of all cable faults
e.g. 2008, Asia lost 70% of internet capacity with Europe when ship damaged cables in Mediterranean
How can environmental factors lead to damaging of data cables?
earthquakes, storms, volcanoes
e.g. Dec 2006, 7.0 earthquake odd S.E coast of Taiwan, 8 submarine cables cut
caused = 100% internet outrage in Hong Kong and 74% to mainland China
How can fish and sharks cause damage to sea floor cables?
predatory fish attracted to electrical impulses passing through cables, mistake for food
When was the first protection of seafloor cables established?
in 1884, the Convention of the Protection of Submarine Cable
Who regulates the management of seafloor cables and how?
UNCLOS
- data cables are internationally recognised as important global infrastructure
- countries can establish no fishing zones around important cable locations
- all countries have freedom to lay and maintain submarine cables in the EEZ and continental shelves of other countries
What is the Automatic Identification System?
tracks shipping globally (on avg. 50 vessels contacted per moth being warned they are nearing data cables
When did UNCLOS form the International Cable Protection Committee? What was their primary goal?
1958
goal to promote the safeguarding of international submarine cables against man made and natural disasters
How many members are part of the International Cable Protection Committee?
155 members from over 60 nations
including cable operators, governments and industry service providers
