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Long-term growth projections of maritime and seaborne trade

Question:

Review ISI Journal and take into Consideration the Publications in the topic of Maritime Transport and Logistics Issues for Shippers, Ship Owners, Port Management, Terminal Operators and All Related Parties.

The Maritime Transport has been able to consider the understanding of the long term growth projections for the maritime and seaborne trade which are seen to be positive in nature. There have been several types of the opportunities which has been able to state on the specific aspects of the generation of income and promote foreign trade. The main aspect of the report has been able to review ISI journal and take into consideration the publications about the maritime transport and logistics issues for shippers, ship owners, port management, terminal operators and all related parties (Losey-León 2015).

As the study is mainly based on deductive research and the hypothesis is able to state:

  • Null Hypothesis (H0): The present issues in maritime transportation has not made a severe negative impact on the shipping segments
  • Alternative Hypothesis (H1): The present issues in maritime transportation has made a severe negative impact on the shipping segments

Some of the main objectives of the paper has been seen with the discussion of the following issues:

  • What are present issues in Maritime transport?
  • What are the market risk involved in maritime logistics?
  • What is effect on demand and supply due to the issues present in Maritime transportation?
  • What are the impact of Maritime transport on the shipping segments?

Ports and shipping industries are currently discerned to be encountering profound period of change. With particular relevance to the shipping sector the chronical overcapacity and the shipowners are constantly seen to be in trouble with capturing demand. The shipping business is considered to be capital intensive with the freight rates unlikely to be considered as short term in nature. The main consequence of this to the shipping has been further seen to be discerned in form of having specific nature of the difficulties which is associated to generating reasonable profit. Analogous ports are able to cope up with the unprecedented levels of competition as a result of slowing down of the world trade and emergence of the concerns mainly associated to over capacity. The terminal operators have been seen to be rediscovering the market risks and services of the shipowners services packages which has been rewarded rediscovering of the market risks and struggling offer given to the service packages of the shipowners and the same has been reflected in their own balance sheet. Based on this perspective of the top managers, ship agents, commercial executives, ship agents and brokers enforcing to explore a new way of business for making the marketing policies in terms of the segmentation, market positioning, service levels, relation with stakeholders and value proposition solutions (Nguyen 2013).


As per the reports published in 2015, majority of the shipping segments has been seen to be based on the depiction of the rates which are seen to be based on the remarkable low levels of the freight rates and feeble earnings. These earnings are mainly seen to be triggered as a result of the weak demand and oversupply of the new tonnage. The container segment freight rates have been seen to be steadily decline the lower amount of the market prices (Nuzzolo et al. 2016). The lower amount of the freight rate levels has been further discerned with the weakening demand of the larger transport container vessels. In the consideration to deal low freight rate and decreasing the losses the carriers continued to consider the measures to improve the efficiency and optimize the operations. The key measures have been discerned in form of “cascading, idling, slow steaming, and wider consolidation and integration”. Some of the other strategies have been seen to be discerned to be based on the restructuring with the new alliances  (Niculescu and Minea 2016).

Opportunities for generating income and promoting foreign trade

As per the data in 2015, the maritime freight rates have been seen to be identified with the various types of the factors which has been seen to be associated to enduring the unpredictability and descending movements and record low levels of the dry bulk cargo. The operating cost has been seen to be mainly weak due to higher demand and high fleet growth with the effective fleet application and intensified deflationary pressure on the cargo rates in most of the markets except the tankers (United Nations 2014).


The main form of the pattern of the low rates has been able to benefit the shippers for translating lower freight costs. The net influence of the lower freight cargo has been further seen to be discerned with the various lower amounts of the freight costs and the same has been benefitted by the shippers (Schliwa et al. 2015). The main form of the impact of the power freight cargo has been seen with the overall consequence of the lower freight costs on trade especially in the emerging countries with higher form of the transportation cost. This could be also seen to be positive to some extent. In 2015, the global dry bulk shipments have been contracted with 0.2% of the volume was estimated with 4.8 billion ton. The same has been seen with the contrast to the average annual growth of 7% in the recent years. The “dry bulk trade” contracted is due with 1.3% decline in the trade among the five majorities with the dry bulk commodities. Some of the main form of the commodities has been seen to be discerned with “iron ore, coal, grain, bauxite and alumina and phosphate rock”. In 2015, the consignments of the five major bulk commodities have been seen with a total amount of 2.95 Billion tons. In less than 15 years, China has been seen to be reaching import volumes of more than 319 million tons in 2000 to 2.1 billion tons in 2015 (Nathanail, Gogas and Adamos 2016).

The lower amount of the freight rates has been further seen to be associated to the issues related to insolvencies and liquidations among the various types of the shipping companies. In 2016, the shipping industry has been seen to be dealing with the number of issues which has been seen to be discerned with persistent mismatch between supply capacity and demand. The uncertainty in the global outlook for the seaborne freight rates have been seen to be determined with the procedure supply capacity management was seen to be handled (Oberhofer and Dieplinger 2014).

Maritime transport and logistics issues for shippers, ship owners, port management, and terminal operators

As per the inferences made in the journal article it has been discerned that due to the present issues in Maritime transport and logistics there has been mismatch between supply capacity and demand. The uncertainty in the global outlook for the seaborne freight rates have been seen to be determined with the procedure supply capacity management was seen to be handled. It has been also discerned that lower amount of the freight rates has been further seen to be associated to the issues related to insolvencies and liquidations among the various types of the shipping companies. Due the aforementioned impact for the issues in maritime logistics we need to reject •  Null Hypothesis (H0) and accept Alternative Hypothesis (H1).

The important discussion on the research objectives has been able to suggest that the present issues in Maritime transport has been depicted with lower freight rates. This has led to severe problems which has been seen to be discerned with the insolvencies and liquidations among the various types of the shipping companies.

The market risk involved in maritime logistics has been further seen to be discerned as per the changes in the oil prices which has led to deviations in the freight rates. The rapid change in the market due to rapid social change and high volatility. The complex nature of the operations has been depicted with entities and long distance physical process. This has led to various types of the emerging market risk. The study has been further able to address the complex problems for long distance of the containerised cargo.

The effect on demand and supply has further shown mismatch between supply capacity and demand. The uncertainty in the global outlook for the seaborne freight rates have been seen to be determined with the procedure supply capacity management was seen to be handled. The impact of Maritime transport on the shipping segments has been discussed with low earnings and freight rates. Due to the existing problems several companies has been seen to facing problems associated to liquidation and unpredictability of cargo rates.

Conclusion

Based on the various type of the discussions of the study the terminal operators have been seen to be rediscovering the market risks and services of the shipowners services packages which has been rewarded rediscovering of the market risks and struggling offer given to the service packages of the shipowners and the same has been reflected in their own balance sheet. In 2015, the global dry bulk shipments have been contracted with 0.2% of the volume was estimated with 4.8 billion ton. The same has been seen with the difference to the average annual growth of 7% in the recent years. The contracted dry bulk trade is due with 1.3% decline in the trade among the five majorities with the dry bulk commodities.

References

Losey-León, M. A. (2015) ‘Corpus Design and Compilation Process for the Preparation of a Bilingual Glossary (English-Spanish) in the Logistics and Maritime Transport Field: LogisTRANS’, Procedia - Social and Behavioral Sciences, 173, pp. 293–299. doi: 10.1016/j.sbspro.2015.02.068.

Nathanail, E., Gogas, M. and Adamos, G. (2016) ‘Smart Interconnections of Interurban and Urban Freight Transport towards Achieving Sustainable City Logistics’, in Transportation Research Procedia, pp. 983–992. doi: 10.1016/j.trpro.2016.05.078.

Nguyen, H. O. (2013) ‘Critical factors in e-business adoption: Evidence from Australian transport and logistics companies’, International Journal of Production Economics, 146(1), pp. 300–312. doi: 10.1016/j.ijpe.2013.07.014.

Niculescu, M. C. and Minea, M. (2016) ‘Developing a Single Window Integrated Platform for Multimodal Transport Management and Logistics’, in Transportation Research Procedia, pp. 1453–1462. doi: 10.1016/j.trpro.2016.05.219.

Nuzzolo, A., Comi, A., Ibeas, A. and Moura, J. L. (2016) ‘Urban freight transport and city logistics policies: Indications from Rome, Barcelona, and Santander’, International Journal of Sustainable Transportation, 10(6), pp. 552–566. doi: 10.1080/15568318.2015.1014778.

Oberhofer, P. and Dieplinger, M. (2014) ‘Sustainability in the transport and logistics sector: Lacking environmental measures’, Business Strategy and the Environment, 23(4), pp. 236–253. doi: 10.1002/bse.1769.

Schliwa, G., Armitage, R., Aziz, S., Evans, J. and Rhoades, J. (2015) ‘Sustainable city logistics - Making cargo cycles viable for urban freight transport’, Research in Transportation Business and Management, 15, pp. 50–57. doi: 10.1016/j.rtbm.2015.02.001.

United Nations (2014) Small island developing States: Challenges in transport and trade logistics, United Nations Conference on Trade and Development. Available at: https://unctad.org/meetings/en/SessionalDocuments/cimem7d8_en.pdf.

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