Overview of Issues related to
International Shipping
Module 003
Capt Sarabjit Butalia MSc FNI IMOMA
9th May 2020
butaliasarabjit@gmail.com
Assignments
• At the end of this session students are
required to discuss the following;
• International Shipping could be termed is
reflection of Governmental Policies, Geo-
politics, foreign relations ,World Economy,
Infrastructure development.
• Discuss this statement with examples.
International Seaborne Trade
Trade Over view-Supply and Demand
Supply and Demand (Typical Supply
Routes)
Geographical Shift of Trade
Group Discussion
• What are the present trends of International trade?
• Discuss its impact of logistics and supply chain
Trade Trends 2019
Trade Trends 2019
Trade Scenario 2018
• Global economic growth dipped in 2018 and is
expected to decline further in 2019. After
reaching 3.1 per cent in 2017, growth in world
gross domestic product (GDP) remained
steady but edged down to 3.0 per cent in
2018.
World economic growth
2017–2019
(Annual percentage change)
Trade Scenario 2018
• Uncertain Outlook
• While the prospects for seaborne trade are bright,
downside risks such as increased inward-looking
policies and the rise of trade protectionism are,
nevertheless, weighing on the outlook.
• An immediate concern is the trade tensions between
China and the United States of America, the world’s
two largest economies, as well as those between
Canada, Mexico, the United States and the European
Union.
Trade Scenario 2018
• In 2018, major dry bulk commodities – iron
ore, grain and coal – accounted for more than
40.0 per cent of total dry cargo shipments,
while containerized trade and minor bulks
accounted for 24.0 per cent and 25.8 per cent,
respectively.
• Remaining volumes were made of other dry
cargo, including break bulks
Trade Scenario 2018
• Tanker trade shipments oil, gas and
chemicals,accounted for 29.0 per cent of total
maritime trade volume, down from 55 per
cent nearly five decades earlier.
Development in international
maritime trade, selected years
International Maritime Trade 2018
Trade Scenario 2018
• Challenges and opportunities of digitalization
• Technological advances in the shipping
industry, such as autonomous ships, drones
and various blockchain applications, hold
considerable promise for the supply side of
shipping.
Trade Scenario 2018
• Challenges and opportunities of digitalization
• Uncertainty within the maritime industry
regarding possible safety, security and
cybersecurity incidents.
Trade Scenario 2018
• International shipping commitment to reduced greenhouse
gas emissions
• Complementing international efforts to address greenhouse
gas emissions, which include the Paris Agreement under the
United Nations Framework Convention on Climate Change
and the 2030 Agenda for Sustainable Development, in
particular Sustainable Development Goal 13 to take urgent
action to combat climate change and its impacts
Trade Scenario 2018
• Key trends shaping the outlook
• First, on the demand side, the uncertainty
arising from wide-ranging geopolitical,
economic, and trade policy risks, as well as
some structural shifts, have a negative impact
on maritime trade.
Trade Scenario 2018
• Key trends shaping the outlook
• Second, the continued unfolding of
digitalization and e-commerce and the
implementation of the Belt and Road
Initiative. These bear major implications for
shipping and maritime trade
Trade Scenario 2018
• Key trends shaping the outlook
• Third, from the supply-side perspective, overly
optimistic carriers competing for market share
may order excessive new capacity, thereby
leading to worsened shipping market
conditions
Trade Scenario 2018
• Key trends shaping the outlook
• Fourth, liner shipping consolidation through
mergers and alliances has been on the rise in
recent years in response to lower demand
levels and oversupplied shipping capacity
dominated by mega container ships
Trade Scenario 2018
• Key trends shaping the outlook
• Fifth, alliance restructuring and larger vessel
deployment are also redefining the
relationship between ports and container
shipping lines.
Trade Scenario 2018
• Key trends shaping the outlook
• Sixth, the value of shipping can no longer be
determined by scale alone. The ability of the
sector to leverage relevant technological
advances is becoming increasingly important
Trade Scenario 2018
• Key trends shaping the outlook
• Finally, efforts to curb the carbon footprint
and improve the environmental performance
of international shipping remain high on the
international agenda. In April 2018
World Seaborne Trade
• Imports of liquefied petroleum gas to India
increased in 2017, supported by a subsidy
programme of the Government promoting
households’ switch to cleaner fuels. In
contrast, imports of the commodity to Europe
declined, owing in part to competition from
ethane.
World Seaborne Trade Projections
• In addition, various projects under the Belt
and Road Initiative of China have the potential
to generate growth and boost seaborne trade
volumes through increased demand for raw
materials and semi-finished and finished
products
World Seaborne Trade Projections
THANKYOU
