Shipping line

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Nippon Yusen Kaisha Shipping line Nagasaki Maru of Nagasaki port, Postcard.jpg
Nippon Yusen Kaisha Shipping line
Container ships are used by shipping lines to transport cargo. MSC Carolina docked at Port of New Orleans.jpg
Container ships are used by shipping lines to transport cargo.

A shipping line or shipping company is a company whose line of business is ownership and operation of ships.

Contents

Shipping companies provide a method of distinguishing ships by different kinds of cargo:

  1. Bulk cargo is a type of special cargo that is delivered and handled in large quantities. [1]
  2. General cargo, now known as break-bulk cargo, refers to a wide assortment of goods that may be delivered to several ports around the world.
  3. Oil became a crucial part of the shipping industry in the early 20th century. Its use varied from lubrication for developed machinery, burning in boilers and industrial plants, as well as for operating engines. [1] Oil is also primarily shipped by specific shipping companies as opposed to other forms of transportation. This is considered a type of special cargo. The shipping of oil has become a debated issue due to the environmental impacts of both oil spills and oil tankers.
  4. Passenger cargo is the business of transporting people on shipping lines for the purposes of relocation or recreation. [2] This became a growing industry near the turn of the twentieth century with the wide use of luxury ocean liners. Passenger cargo became a logistical challenge by attempting to balance pleasure voyage aspects with the structural limitations and requirements of the vessel. [1]
  5. Special cargo is a term used for one specific product being shipped to a specific port. [1]

Inland shipping along rivers and other freshwater bodies are used to transport cargo to ports other than those along the coast. Inland shipping requires more infrastructure than ocean shipping. Rivers and lakes require infrastructure, such as river ports and canals, to be considered developed and ready for commercial use. Much of this infrastructure became more widely developed during the 19th and 20th centuries. [1] Some principal waterways used by shipping lines in the 20th century were the Rhine, Amazon River, Congo River, Nile River, Mississippi River, and Columbia River. Examples of waterway infrastructure include the Suez Canal and the Panama Canal. [1] These waterways are still in use for commercial purposes today. Some waterways can only operate under seasonal conditions. For example, the Great Lakes operate shipping for approximately eight months each year, but cannot continue operations during winter months when the lakes typically freeze. Most inland shipping lines are based on speed and efficiency to deliver cargo. [2]

Modern shipping

Contemporary maritime transportation is bound by geographical constraints, political regulation, and commercial interests. [2] Modern advances and innovations in shipping technology have grown the shipping industry since the twentieth century. Many of these advances include the size of vessels, the size of fleets, specialty purposes for ships within the fleet, naval architecture and design, and automated ship systems. [2] In terms of commercial interests, the maritime industry has a high level of contestability for shipping lines. This means that the ease of entering and leaving the industry is high. [3] The cause of this is due to the purchase of secondhand ships, the return on which can often be covered fairly quickly for commercial ships. Newer, expensive ships require a larger return on the investment but pay off quickly. This is because these ships typically cater to a larger, more expensive crowd. For instance, new cruise ships can often be paid off within ten years due to the entrepreneurial nature of its intended purpose. [2]

Innovations in the shipping industry are also being utilized by shipping lines to find solutions to global problems. For example, modern technology and research is being used to analyze the phenomenon of shipping containers disappearing while at sea. These problems are being researched in part by government agencies, such as the National Oceanic and Atmospheric Administration that operates in the Monterey Bay National Marine Sanctuary. [4] While part of this issue is due to human error as a result of lack of enforcement, advances in technology and ship design hope to improve the rates at which containers may be lost at sea. [4]

Other challenges being pursued in the maritime industry include adaptation to a more globalized economy. While the maritime industry has always remained global by nature, shipping lines are now experiencing phenomenon that is unprecedented in scale or unseen at all before the 21st century. Many of these issues surround the nature of increased cooperation in the maritime industry. [3] For instance, cooperation among many shipping lines in the industry is causing an anticompetitive market. This is one of the reasons for the high level of contestability in the shipping industry. With more cooperation among shipping lines, there are larger rates of ships and companies entering and leaving the industry. [3] As of 2019, business and economic analysists are attempting to find solutions to reduce the anticompetitive practices and promote competitive growth in the maritime industry. [5]

History

British shipping

Large-scale shipping lines became widespread in the nineteenth century, after the development of the steamship in 1783. At first, Great Britain was the centre of development; in 1819, the first steamship crossing of the Atlantic Ocean took place and by 1833, shipping lines had begun to operate steamships between Britain and British Empire possessions such as India and Canada. [6] Three major British shipping lines were founded in the 1830s: the British and American Steam Navigation Company, the Great Western Steamship Company and the Peninsular Steam Navigation Company. [6]

American shipping

The United States federal government passed the Shipping Act of 1916 as a protection agency for American shipping. [7] The act, passed during World War I but before the nation officially entered the war, helped American shipping lines during a period when commercial shipping grew under the demands of the war. Under this act, the United States Shipping Board was also formed. [7] In 1920, after the end of World War I, the federal government passed the Merchant Marine Act to protect American shipping interests in response to changing foreign shipping policy. The responsibilities established under the Shipping Act were eventually transferred to the Department of Commerce in 1933 by President Franklin D. Roosevelt. [7] The Federal Maritime Commission was created in 1961 by President John F. Kennedy to regulate shipping activity in the United States, finally giving blanket authority to one shipping commission. [7] At the same time, the United States Maritime Administration, or MARAD, was founded to regulate the merchant marine industry and fleet. However, a sharp rise in international ocean trade gave the two agencies expanded power in the growing maritime industry. [7]

See also

Related Research Articles

Ship Large watercraft

A ship is a large vessel that travels the world's oceans and other navigable waterways, carrying cargo or passengers, or in support of specialized missions, such as defense, research and fishing. Ships are generally distinguished from boats, based on size, shape, load capacity and purpose. Ships have supported exploration, trade, warfare, migration, colonization, and science. Ship transport is responsible for the largest portion of world commerce.

<span class="mw-page-title-main">Freight transport</span> Physical process of transporting commodities and merchandise goods and cargo

Freight transport, also referred as freight forwarding, is the physical process of transporting commodities and merchandise goods and cargo. The term shipping originally referred to transport by sea but in American English, it has been extended to refer to transport by land or air as well. "Logistics", a term borrowed from the military environment, is also used in the same sense.

<span class="mw-page-title-main">Maritime transport</span> Transport of people or goods via waterways

Maritime transport or more generally waterborne transport, is the transport of people (passengers) or goods (cargo) via waterways. Freight transport by sea has been widely used throughout recorded history. The advent of aviation has diminished the importance of sea travel for passengers, though it is still popular for short trips and pleasure cruises. Transport by water is cheaper than transport by air or ground, but significantly slower for longer distances. Maritime transport accounts for roughly 80% of international trade, according to UNCTAD in 2020.

<span class="mw-page-title-main">Containerization</span> Intermodal freight transport system

Containerization is a system of intermodal freight transport using intermodal containers. Containerization, also referred as container stuffing or container loading, is the process of unitization of cargoes in exports. Containerization is the predominant form of unitization of export cargoes, as opposed to other systems such as the barge system or palletization. The containers have standardized dimensions. They can be loaded and unloaded, stacked, transported efficiently over long distances, and transferred from one mode of transport to another—container ships, rail transport flatcars, and semi-trailer trucks—without being opened. The handling system is mechanized so that all handling is done with cranes and special forklift trucks. All containers are numbered and tracked using computerized systems.

<span class="mw-page-title-main">Port</span> Maritime facility where ships may dock to load and discharge passengers and cargo

A port is a maritime facility comprising one or more wharves or loading areas, where ships load and discharge cargo and passengers. Although usually situated on a sea coast or estuary, ports can also be found far inland, such as Hamburg, Manchester and Duluth; these access the sea via rivers or canals. Because of their roles as ports of entry for immigrants as well as soldiers in wartime, many port cities have experienced dramatic multi-ethnic and multicultural changes throughout their histories.

Container ship Ship that carries cargo in intermodal containers

A container ship is a cargo ship that carries all of its load in truck-size intermodal containers, in a technique called containerization. Container ships are a common means of commercial intermodal freight transport and now carry most seagoing non-bulk cargo.

<span class="mw-page-title-main">Mitsui O.S.K. Lines</span> Japanese shipping company

Mitsui O.S.K. Lines is a Japanese transport company headquartered in Toranomon, Minato, Tokyo, Japan. It is one of the largest shipping companies in the world.

<span class="mw-page-title-main">Cargo ship</span> Ship or vessel that carries goods and materials

A cargo ship or freighter is a merchant ship that carries cargo, goods, and materials from one port to another. Thousands of cargo carriers ply the world's seas and oceans each year, handling the bulk of international trade. Cargo ships are usually specially designed for the task, often being equipped with cranes and other mechanisms to load and unload, and come in all sizes. Today, they are almost always built of welded steel, and with some exceptions generally have a life expectancy of 25 to 30 years before being scrapped.

<span class="mw-page-title-main">Merchant ship</span> Civilian boat or ship that transports cargo or carries passengers for hire

A merchant ship, merchant vessel, trading vessel, or merchantman is a watercraft that transports cargo or carries passengers for hire. This is in contrast to pleasure craft, which are used for personal recreation, and naval ships, which are used for military purposes.

<span class="mw-page-title-main">Short-sea shipping</span> Movement of cargo and passengers by sea along a coast, without crossing an ocean

The modern terms short-sea shipping, marine highway and motorways of the sea, as well as the more historical terms coastal trade, coastal shipping, coasting trade and coastwise trade, all encompass the movement of cargo and passengers mainly by sea along a coast, without crossing an ocean.

<span class="mw-page-title-main">Freight rate</span> Cost of transporting goods

A freight rate is a price at which a certain cargo is delivered from one point to another. The price depends on the form of the cargo, the mode of transport, the weight of the cargo, and the distance to the delivery destination. Many shipping services, especially air carriers, use dimensional weight for calculating the price, which takes into account both weight and volume of the cargo.

<span class="mw-page-title-main">Lighter aboard ship</span>

The lighter aboard ship (LASH) system refers to the practice of loading barges (lighters) aboard a bigger vessel for transport. It was developed in response to a need to transport lighters, a type of unpowered barge, between inland waterways separated by open seas. Lighters are typically towed or pushed around harbors, canals or rivers and cannot be relocated under their own power. The carrier ships are known variously as LASH carriers, barge carriers, kangaroo ships or lighter transport ships.

<span class="mw-page-title-main">Ellerman Lines</span> Large UK based shipping firm

Ellerman Lines was a UK cargo and passenger shipping company that operated from the late nineteenth century and into the twentieth century. It was founded in the late 19th century, and continued to expand by acquiring smaller shipping lines until it became one of the largest shipping firms in the World. Setbacks occurred through heavy losses to its merchant fleet in the First and Second World Wars but were overcome in each case.

<span class="mw-page-title-main">American Export-Isbrandtsen Lines</span>

American Export-Isbrandtsen Lines, New York, was the leading US-flag shipping company between the U.S. east coast and the Mediterranean from 1919 to 1977, offering both cargo ship and passenger ship services, until it declared bankruptcy and was acquired by Farrell Lines of New York.

<span class="mw-page-title-main">Malcom McLean</span> Transport entrepreneur who developed the modern intermodal shipping container

Malcolm Purcell McLean was an American businessman who invented the modern intermodal shipping container, which revolutionized transport and international trade in the second half of the twentieth century. Containerization led to a significant reduction in the cost of freight transportation by eliminating the need for repeated handling of individual pieces of cargo, and also improved reliability, reduced cargo theft, and cut inventory costs by shortening transit time. Containerization is a major driver of globalization.

The Port of Montreal is a cruise and transshipment point. It is located on the St. Lawrence River in Montreal, Québec, Canada. The port operates as an international container port. It services Toronto, the rest of Central Canada, the Midwestern United States, and the Northeastern United States. Though found on the Saint Lawrence Seaway, it is some 1,600 miles (2,600 km) inland from the Atlantic Ocean and it is on the shortest direct route between the North American Midwest and Europe or the Mediterranean.

<span class="mw-page-title-main">History of transport in China</span>

Since 2018, transport occupied a relatively low priority in China's national development. In the twenty-five years that followed the founding of the People's Republic in 1949, China's transportation network was built into a partially modern but somewhat inefficient system. The drive to modernize the transport system, that began in 1978, required a sharp acceleration in investment. Though despite increased investment and development in the 1980s, the transport sector was strained by the rapid expansion of production and the exchange of goods.

<span class="mw-page-title-main">Shipping industry of China</span>

In 1961 China established a state-run maritime shipping company and subsequently signed shipping agreements with many countries, laying the foundation for developing the country's ocean transport. That organization developed into the present-day China Ocean Shipping (Group) Company (COSCO). The Chinese government also invested heavily in water transport infrastructure, constructing new ports and rebuilding and enlarging older facilities.

<span class="mw-page-title-main">Moore-McCormack</span> Series of shipping lines

The Moore-McCormack Lines was a series of companies operating as shipping lines, operated by the Moore-McCormack Company, Incorporated, later Moore-McCormack Lines, Incorporated, and simply Mooremack, founded in 1913 in New York City. It ceased trading on its buy-out in 1982. The founders were Albert V. Moore (1880–1953) (director/president) and Emmet J. McCormack (director/treasurer), with Mr Molloy (director/secretary).

<span class="mw-page-title-main">United States Marine Highway Program</span> Network of navigable waterways in the United States

The United States Marine Highway Program is a United States Department of Transportation (DOT) initiative authorized to increase use of the United States' 29,000 mi (47,000 km) of navigable waterways to alleviate traffic and wear to the nation's highways caused by tractor trailer traffic. The program is managed by the Maritime Administration's Office of Ports & Waterways Planning.

References

  1. 1 2 3 4 5 6 Hardy, A. C. (1928). Seaways and Seatrade. New York, NY: D. Van Nostrand Company.[ page needed ]
  2. 1 2 3 4 5 Rodrigue, J. P. (2017). “Maritime Transportation”. The Geography of Transport Systems. New York, NY: Routledge. Retrieved from https://transportgeography.org/?page_id=1762
  3. 1 2 3 Davies, J. E. (1986). "Competition, Contestability and the Liner Shipping Industry". Journal of Transport Economics and Policy. 20 (3): 299–312. JSTOR   20052790.
  4. 1 2 Frey, O. T., DeVogelaere, A. P. (2014, March). “The Containerized Shipping Industry and the Phenomenon of Containers Lost at Sea”. Retrieved from https://nmssanctuaries.blob.core.windows.net/sanctuaries-prod/media/archive/science/conservation/pdfs/lostcontainers.pdf
  5. Parthibaraj, Calwin S.; Subramanian, Nachiappan; Palaniappan, P.L.K.; Lai, Kee-hung (January 2018). "Sustainable decision model for liner shipping industry" (PDF). Computers & Operations Research. 89: 213–229. doi:10.1016/j.cor.2015.12.005.
  6. 1 2 British History - Victorian Technology, BBC History
  7. 1 2 3 4 5 “History of the Federal Maritime Commission”. (2019, March 11). Retrieved from https://www.fmc.gov/about/history.aspx