Unit 2 Notes Flashcards
What was the value of world trade in 1950?
$61 Billion.
What was the value of world trade in 2017?
$17.7 Trillion.
How much has global trade increased since 1913?
600,000 times.
What is containerisation?
Using steel containers with standardised dimensions, which can be transported, unloaded, stacked, and transported.
Who had the initial idea for containerisation?
Malcom Mclean.
What is break buck shipping?
Form of loading before containerisation. Took a week to load and unload a cargo ship.
What were the impacts of containerisation?
Port labour productivity went up over 15x following containerisation, number of loading ports decreased.
What are the largest importing countries?
USA, EU, China, Germany, Japan, France.
What are the largest exporting countries?
China, USA, Germany, UK, France.
What are the choke points of global shipping routes?
Panama Canal, Suez Canal, Straits of Gibraltar, English Channel, Gulf of Aden.
What are the largest ports in Europe?
Rotterdam, Antwerp, Novorossuv, Hamburg, St. LugWa, Augericus.
What are the largest ports in North America?
Los Angeles, Long Beach Port, New York, Savannah, Houston.
What are the largest ports in Asia?
Shanghai, Singapore, Ningboj, Zhoushan, Shenzhen.
How many containers pass through the panama canal each week?
252.
Why is the panama canal important?
It’s a link between the Atlantic ocean and pacific ocean, enabling ships to avoid the travel around the cape horn in South America.
What are the recent trends in container shipping?
Overcapacity has reduced profits, periods of economic downturn, protectionist strategies - reshoring.
What is Reshoring?
Shortening supply chains to obtain local goods and services, instead of using global offshore locations.
Which other factors may lead to a reduction in global shipping?
Weather conditions, war, seasonal demand.
What is an example of weather conditions leading to a reduction in global shipping?
Argentinian wine shipments departing from Chilean ports can be delayed in winter if heavy snowfall blocks crossings.
What is an example of war leading to reductions in global shipping?
Attacks on the red sea, exports of grain from Ukraine.
What is an example of seasonal demand leading to reductions in global shipping?
During south Africa’s peak fruit shipping season, containers are allocated mainly to the fruit trade.
What have major container companies done in recent years?
Consolidate in order to cut costs.
What are the three main vessel sharing agreements?
2M Alliance, Ocean Alliance, THE Alliance.
What is UNCLOS responsible for?
Regulating shipping, particularly the regulation of oil pollution from oil tanks.