INTRODUCTION

World trade and maritime transport are
fundamental to sustaining economic growth and spreading prosperity throughout
the world, thereby fulfilling a critical social as well as an economic
function.   . The marine transportation system is a network of specialized
vessels, the ports they visit, and transportation infrastructure from factories
to terminals to distribution centers to markets. is a necessary complement to
and occasional substitute for other modes of freight transportation. For many
commodities and trade routes, there is no direct substitute for waterborne
commerce.1 

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 International maritime transport costs tend
to be on average between two to three times as high as custom duties of
importing countries. it is the cheapest way of transporting large amounts of
goods compared to other transport methods. Furthermore, maritime
transport will be indispensable in a sustainable future global economy as it is
the most environmentally sound mode of mass transport, both in terms of energy
efficiency and the prevention of pollution..2

Today shipping due to its international character and the
globalization of the economy is constantly  evolving, it is undergoing major changes and a
transition. The new IMO regulations and the international conventions have
contributed positively to the development of maritime trade, the safety of
ships and the protection of the environment Increasing globalization has led to
a strong increase in international shipping activity. 3     

 

 

 

 

 

 

 

 

The Globalization causes

As the
global economy struggles to regain its momentum following the recession, it’s
clear that shipping   will be
instrumental in making it happen.

According to the Ashkenas  Jick & kern 1995 the main causes for
globalization are referred to as the

·       Survival in a competitive world through cost
reductions, profit margins, economies of scale and local preferences

·        Desire
to disperse or expense for various capital intensive investment Desire or need
to generate profit, since the first companies entering a market will get the
portion the lion, while the rest are the rest.

·        Expanding to new territories and regions.  The benefit deriving from the successful
abolition and is a generating cause and other benefits. The pursuit of
innovation and the adoption of new technology that removes geographical
boundaries and time barriers. Comparing a company’s work with the others,
showing the need to imitate or to adopt the practices of the other company. The
decision to follow a customer in another country.4

 

 

 

 

 

 

 

 

 

 

 

 

 

IMPACTS OF GLOBALIZATION IN
SHIPPING INDUSTRY

 

·       Positive Impact

·       New jobs

·       Evolution  of new business 

·        Labors are needed to preserve the companies running

·       Plenty of job
opportunities offered

·       Reduces
unemployment Increased Global Production

·       Rise in demands
of goods and products from customers all over the world

·       Manufacturers
and suppliers need to deliver their goods to the customers

·       There will be
an increase in demand for shipping services especially on seasonal occasions

 

 

·       Negative Impact

·       Environmental
Impact

·       Air Pollution –
Emission of Carbon Dioxide and Sulphur Oxide

·       Water Pollution
– Shipping accidents causes oil spill
– Disposal of garbage into sea water

·       Sound Pollution
– Loud noises produced by engines at 
the harbor

·       Uneven Benefit
to Local Investors

·       Investments
needed for ports and businesses need to expand to accommodate bigger ships

·       Foreign investors
can offer bigger investments compared to local investors
Therefore, local investors do not get as much share as
foreign investor 

 

 

Case study

 

·       The environmental impacts of maritime
transport activities.

The environmental impact of shipping includes greenhouse gas
emissions, acoustic, and oil pollution. The International Maritime Organization
(IMO) estimates that Carbon dioxide emissions from shipping were equal to 2.2%
of the global human-made emissions in 2012 and expects them to rise 50 to 250
percent by 2050 if no action is taken.5

Each maritime transportation activity occurring in ports, at sea
or during ship construction/maintenance/dismantling, presents different
environmental impacts, on air, water, ecosystem and other. Together with these
impacts also those deriving from accidental events or illegal actions have to
be considered when evaluating the overall contribute of the maritime
transportation sector to environmental quality.6

 

 

 

 

MAIN EMISSIONS FROM SHIPS:

1. Petroleum (crude oil, mazut)

2. Wastes (household-functional)

3. Gaseous emissions

4. Waste

5. Chemicals7             

 

Petroleum products:

• Used mineral oils

 • Fuel residues

 • Residues

• Unclean ballast

• Tank washes

The sources of the above are:
natural (natural outflows), marine (accidental and deliberate) and land
(discharges, rain water, river discharges).

Trash:

• Households: food waste,
packaging materials, bottles, paper

 • Functionally: maintenance waste, cargo, ash,
pallets, straps, fishing nets, animal feces, investment materials. The sources
of the above are either land or sea. The terrestrial are mainly due transport
of waste (through rivers, from seaside, industrial and commercial) tourist
infrastructures). Marine vessels of various types  (commercial, fishing, war etc.)

 Air Emissions:

• Exhaust emissions (nitrogen,
oxygen, water vapor, carbon dioxide, carbon monoxide carbon oxides of sulfur,
hydrocarbons)

 • Other substances that deplete the ozone
layer, derived from the ship refrigerators, air conditioning and fire
extinguishing systems. Shipping consumes less per unit of output than the rest
transport and emit less harmful gases into the atmosphere (especially its
dioxide coal). The exhaust gases of the ships contribute to the
“cooling” of the climate and not to the heating of. So despite its
impressive participation in world trade, which it touches 90% of global
transport shows that it is facing its crucial issue climate change and global
warming, shipping should be considered as a best choice to meet the
ever-growing global demand for them transport services.

 

 

 

 

8

 

Estimated Impacts on Water

 

 Water pollution In general
it is observed that there are no detailed information on emissions in water.
This is because, contrary to the air emissions, it is difficult to calculate
emission factors for water. However, some estimates indicate that normal shipping
operations are responsible for over 70% of the oil entering the sea from marine
transportation, but as the oil is often spread over a large number of
locations, the effects of operational discharges may appear less dramatic than
the often catastrophic localised effects of accidental oil spills. 9They
do, however, give rise to a number of chronic pollution problems, particularly
in low energy environments such as ports and harbours. Statistics show that 80%
of oil spills occur in harbour waters. Clearly, these are not the only wastes
discharged by ships. Other vessel discharges may be equally hazardous but to
date have generally received less public attention because they are subtler and
less visible, e.g. chemical discharges. Furthermore, there are arguably less
hazardous but highly visible discharges in the form of garbage. (Ball, 1999).10

 

 

 

 

 

 

 

 

 

Estimated Impacts on Ecosystem

 

 

 Biodiversity loss and
habitat degradation As already mentioned, the study by Cofala et al. (2007)
assesses health and environmental impacts of the shipping emission scenarios,
extending the IIASA RAINS/GAINS integrated assessment model. In particular, they
used the loss in statistical life expectancy attributable to anthropogenic
emissions of PM2.5 as a health impact indicator. The value of that indicator is
highly country- and scenario-specific . Moreover, they considered the number of
cases of premature deaths attributable to the human exposure to ground-level
ozone.

 

 Finally, regarding
estimates of the protection of all ecosystems against eutrophication, Cofala et
al. (2007) included forests, semi-natural vegetation, and freshwater catchments
and, in particular, the total ecosystems area with nitrogen deposition above
critical loads for eutrophication. As concerns the negative effects on the
ecosystem determined by discharge of ballast water, described in the section on
the impacts, the literature review highlights that estimation of ballast water
volume have been done. 11

 

 

 

Conclusion

Because shipping is a
service business, ship demand depends on several factors, including price,
speed, reliability and security. It starts from the volume of trade, how the
commodity trades can be analysed by dividing them into groups which share
economic characteristics, such as energy, agricultural trades, metal industry
trades, forest products trades and other industrial manufactures

 

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