Effects of Globalization on International Ocean Transportation

LITERATURE REVIEW
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Effects of Globalization on International Ocean Transportation
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 and interregional trade. In other words, transportation has often been referred to as one of the pillars of globalization, along with international standardization, communication, and trade liberalization(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, distribution, and consumption of goods across different borders, hence creating a unified market.
Faced with the higher consumer demands for quality products, organizations are obliged to make decisions as to the benefits of a globally recognized brand that produces better products that are relatively priced, worthy of the increased security measures, differences in process and quality standards and the potential of waiting longer for the delivery times; aspects impacted by all the ends of ocean transportation(International Maritime Organization, 2004). The increase in sea transport methods and container ships is evidence enough to prove that companies have embarked on the need to embrace the prospects of globalization on international ocean transportation in a bid to meet the growing consumer demands for on-time delivery of quality products, a path that necessitates the need to better infrastructures and dependable delivery approaches. Globalization is therefore seen as having a positive or negative effect on international stability, the environment and sustainable development. This paper consequently seeks to establish the effect of globalization on international ocean transportation.
Literature Review
The movement of goods internationally remains an integral aspect 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, an aspect that has made transportation of goods across nations quite effective. According toEndresen et al. (2014), marine transportation is considered as an integral element in within the global economy. The marine transportation system is comprised of a network of specialized vessels, ports visited, and the transportation infrastructures that are collected from terminals to distribution centers and lastly to markets. Maritime transportation is therefore perceived as an important complement to and intermittent substitute for other freight transportation systems (Hummels, 2012). This material remains important in establishing the positive effects of globalization on international ocean transportation, an element that supports the established research study.
The element of globalization is consequently motivated by the recognition of the fact that resources and goods are not in most cases collocated with the populations that demand them, an aspect that instigates the need for global transportation services. An instance of this is established in a case where rather than palletizing grains, minerals as well as other commodities, cargo ships were established to deliver shipments in either raw or semi-raw conditions from their production regions to the processing facilities that are closer to the final market(Sasa et al. 2015). Along with the advancements in cargo handling and shipboard technologies and containerization, the element of globalization has immensely reduced crew sizes and the longshore labor needs, an aspect that has seen a reduction in per-unit costs of ocean cargo transport.
Atef &Al-Balushi (2016) details that the aspect of globalization has made it possible to identify labor markets overseas that have encouraged the transportation of semi-raw goods and intermediate products in places where the manufacturing costs are slightly lower. With the current low-cost petroleum energy prices for vessel propulsion, facilitated by the vessels economies of scale, it is essential to consider that per-unit costs of semi-finished products have been minimized by several multi-continental supply networks. Currently, it is easier for agriproducts to be harvested in one continent and shipped to the other for intermediate processing, after which the end product is transported to other continents for final assembly and delivery in markets. An instance of this can be depicted in North America that mainly grows cotton for sale in different retail stores. Wine, apples, coffee, and orange juice among other products have also found markets on different continents where climatic and seasonal limitations require an offshore sourceLevinson (2006)therefore provides factual evidences that support my research prospects by pointing out on the essence of globalization on international ocean transportation.
On the other hand Levinson (2006)asserts that globalization has hastened the pace at which trade occurs. As a result of globalization, the transaction of goods and services into smaller packets that are delivered just in time has been achieved. This has immensely increased the velocity of freight services, an aspect that is justified by the large containerized vessels. Within a globalized economy, the containerization of products offers different economies the advantage of integrated freight transport systems across all modes. Analogous to the uniform form of carrying liquid oil or unprocessed food products, containerization has standardized the shipping packages, hence reducing the per-unit cost of transporting finished goods in different markets.One essential element of the competitiveness in trade between different economies remains in the capacity to connect with various trade partners worldwide. Such a function calls for connectivity regarding a well-structured transport system that can be viewed through the inclusion of a supply capacity that takes into consideration regular shipping services at the disposal of the prevalent markets (Setamanit& Pipatwattana, 2015). The author of this journal supports my research area, hence aiding in broadening my research topic effectively.
Besides the shifts in human labor to the wind-driven sails, the first modern energy system in marine transportation as established by Rajasekaran (2016)was the transition from sail to combustion, an aspect that was motivated by energy technological innovations that provided better performance at lower costs. Due to globalization, newer and larger ships were developed to adapt to the combustion technology as part of an economy of scale. These techniques enhanced the emergence of trade routes irrespective of the latitudes that were inconsistent with the winds, an aspect that increased both the global industrialization and current expansion of political superpowers. It is important to understand that initially, ships were powered through the use of coal-fired boilers that were used to produce st...