The Impacts of Globalization of International Ocean Transportation

Effect of Globalization on International Ocean Transportation
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Effect of Globalization on International Ocean Transportation
Introduction
Throughout history, shipping has been a critical human activity especially in cases where development depended mainly on global and interregional business. This importance has led to transportation being branded as one of the four pillars of globalization, alongside international standardization, trade liberalization and communication. As a result of the technological, economic, and socio-cultural factors, it is hard to find a nation that has cushioned itself from the economic activities of the neighboring nations. The decision by nations to open its borders for international trade has the capacity of increasing the economic prospects of the concerned nation. The increased flow of goods and knowledge across continental borders is what is referred to as globalization. Globalization is seen as having a positive or negative effect on international stability, the environment and sustainable development. This paper discusses the effect of globalization on ocean transportation especially in relation to how the maritime industry has been forced to transform its technologies over the years to meet the arising demands of globalization.
Ocean Transportation and the Movement of Goods
The movement of goods internationally is an important element in the international transportation system that is inclusive of oceans, railways, roads and air transport. Over the years, the use of the ocean as a means of transportation has gained popularity due to its convenience as well as the low cost of transportation has made transportation of goods across nations quite effective. The popularity of sea transport has been mainly due to the convenience that the transporter has on how they want to ship their goods. In most cases, transporters use sealed containers something that safeguards the goods during transportation. The international shipping links the major transportation systems through ocean and coastal routes (International Maritime Organization, 2004). The ability to choose how to transport their goods has been very instrumental as it has led to increased efficiency in the trade between international institutions and nations. In the prevailing global economy, the biggest concern is on saving time, cost as well as in the safe delivery of goods. Even though ocean transport takes more time, it can carry more goods thus increasing its preference especially for the transportation of non perishable goods. Despite this being a slow mode of transportation, proper planning can see this mode of planning meet all the inventory needs in an organization (International Maritime Organization, 2004).
Globalization and the Role of Ocean Transport
Ocean transportation plays an important role in global transportation. Even though this mode of transportation is less visible to many people, it is well synchronized and thus capable of bringing numerous benefits to a nation. The maritime transportation system is a well coordinated network that is comprised of special vessels, the harbors that they visit as well as transportation structure from the manufacturing industries to channels of distrib...