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.
How many oil spills occurred between 1960 and 1990?
10.
What was the Torrey Canyon disaster?
A tanker struck rocks near the isle of Scilly, released 119,000 tonnes of oil, 15,000 dead birds, affected 80km of UK, 120km of French coastlines.
What was the Exon Valdez disaster?
1989 - Affected Alaska, had a severe environmental impact, put pressure on the need to regulate oil tankers.
What is an example of UNCLOS regulations applying to oil tankers?
Oil tanker construction, Tanker Flushing.
What is an example of UNCLOS regulation of Oil tankers?
The ban of single hull tankers, came into effect on 1 September 2003. Only double hulled tankers could transport oil.
What was the number of large oil spills in the 1990’s, and the 2000’s?
1990s - 358.
2000s - 181.
What was the total quantity of oil spilled (Tons), in the 1990’s and the 2000’s?
1990s - Over 1 Million.
2000s - Less than 200,000.
What is an example of UNCLOS regulations in Tanker flushing?
Oil tankers may be required to transport different types of oil, it’s necessary to clean storage tanks.
Which practice was made illegal in 1978?
Using hot seawater jets to clean tanks, and discharge them into the sea.
Why are chokepoints important in global ocean trade?
It’s important to maintain the flow of shipping through these areas for economically essential commodities.
What % of oil production moves via oil tankers?
60%.
Why has the rise of piracy become a concern?
The strategic importance of chokepoints such as the Suez and Panama canals.
What is the risk of piracy hotspots?
Many criminal groups have hijacked oil tankers and shipping containers.
What was the cost of stolen property and ransom payments in 2011?
$10 Billion.
What is the case study of piracy?
Somalia.