13/02/2022
The shipping business is essential to the development of economic activities as international trade needs ships to transport cargoes from places of production to places of consumption. In this chapter we discuss several fundamental questions in the shipping business. These questions include the following: Why is there demand for shipping? What is a shipping system? Who are the actors in shipping? Broadly speaking, sea transport can be divided into tramp and liner shipping. The purpose of tramp shipping is to provide convenient and economical transport for bulk cargoes that require cross-ocean movement. Bulk cargoes can be classified into dry bulk and liquid bulk. The demand for the transport of liquid bulk by sea is served mainly by the sector of tanker shipping. The main function of liner shipping is to satisfy the demand for regular cargo transport. Shipping and international trade are interrelated. This chapter also examines fundamental topics in the shipping business such as the sea transport system, international trade patterns, and international maritime passages.
