Effect of Globalization on International Ocean Transportation

GLOBALIZATION ON INTERNATIONAL OCEAN TRANSPORTATION
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Table of Contents
Abstract3
Introduction4
History and Characteristics of a Globalized Economy5
Characteristics of the International Ocean Transportation Industry7
Globalization on International Ocean Transportation10
Literature Review13
Results and Discussion18
Conclusion21
References24
Abstract
The demand and the need for a regularly growing economy that avails products for consumer’s products currently remains the source of every business venture in the entire surface of the globe. The economy in this context is required to nestle a globally competitive market that allows for connections anywhere in a bid to achieve the benefits of trade. The bourgeoisie through its expansion and utilization of the world global markets has resulted in the development of a cosmopolitan market that embraces the production and consumption of goods across the globe. Globalization has extensively been supported and expanded by the development and advancement of modern international transportation systems. From the large container ships to the small delivery trucks, it is important to understand that the whole distribution network remains an important element that closely integrates and links the production and manufacturing activities with the global markets.
However, the genesis of the 21st century brought with it a series of challenges to the role of international ocean transportation within the global economy. The capacity of several segments of maritime transport systems has immensely been stretched in a manner that has seen additional demands that tie up long distance transportation modes. On the other hand, the congestion of many several international ocean transport terminals such as ports has received delays and unreliable deliveries with this resulting in an acute need to improve the marine transport network, notably, those that are directly linked to the major gateways of the global economies. The long trends of the growing energy prices and costs are considered as another element that is likely to impose significant adjustments to the international ocean transport systems not forgetting the environmental impact of this mode of transportation. This paper concentrates on addressing the dualistic role of international maritime transport as a pro-active agent of globalization including the positive and adverse effects of this development.
Introduction
Ocean transportation has over time been considered as a significant human activity throughout history, with particular inference to instances where prosperity remains wholly dependent on international trade. In other words, the aspect of international ocean transportation is considered and referred to as one of the primary stakes of globalization, an aspect that is coupled with international standardization approaches, communication, and the liberalization of trade markets (International Maritime Organization, 2004). Given this, it is essential to point out that the trends of globalization are heralded as a beneficial element for global stability and sustainable development. In this case, it is imperative to detail that globalization integrates the production, di...