Global scenario of shipping in the light of changing world trade patterns

After fighting the economic downturns for a decade from 2008 onwards, governments were forced to line up to support a liberalised global market doctrine. Governments cooperate on the governance of climate issues and free trade protocols. A number of global agreements on these topics are in place, many of them administered by a modernised, efficient UN.

In this world, logistics is king. Highly optimised and integrated large scale logistics systems have emerged, and shipping is a component within them. Ships no longer have names; they are simply tools in the process. Ultra-efficient, automated ports near the megacities process shipments at high speeds. Most goods are transported between megacities and areas rich in resources, such as clean water, food and energy.

Climate change is perceived as an opportunity, and innovating green solutions is a lifestyle. New inventions spring up everywhere, in the slums as well as in corporate R&D centres and are broadly adopted in the society. Although renewables are the top priority, oil, coal and other fuels are shipped into regions where production of renewable energy is difficult. Algae are farmed offshore for biofuel production.

Environmental challenges have led to the development of new types of vessels; desalination, waste management and recycling ships are anchored outside megacities, serving their needs. Sustainable cruise vacations are a growing trend among the growing middle classes all over the globe.

Globalization was the buzzword of the 1990s, and in the twenty first century, there is no evidence that globalization will diminish. Essentially, globalization refers to growth of trade and investment, accompanied by the growth in international businesses, and the integration of economies around the world. According to Punnett (2004) the globalization concept is based on a number of relatively simple premises [1]:

Technological developments have increased the ease and speed of international communication and travel.

Increased communication and travel have made the world smaller. A smaller world means that people are more aware of events outside of their home country, and are more likely to travel to other countries.

Increased awareness and travel result in a better understanding of foreign opportunities.

A better understanding of opportunities leads to increases in international trade and investment, and the number of businesses operating across national borders. These increases mean that the economies around the world are more closely integrated.

The fortunes of the transport and logistics industry are closely connected to the economic cycle. When economic activity is buoyant, demand for transport and logistics services is equally strong. Consumer and business demand for goods and services inevitably translates into higher demand for transport and logistics services. Thus, the slump in global economic growth that occurred in the second half of 2008 and during the course of 2009 caused global trade volumes to plummet, and had a severe impact on the transport and logistics industry. The shipping industry has also been badly affected by the slump in global economic growth and trade. Thus the Shipping industry is forced to make some changes by adapting itself to the future trends for its survival.