The glorious history of shipping

Shipping plays a very vital and significant role in today's global economy. The transportation through sea routes is considered the most economical and cheapest mode of transport which gave rise to ship building and movement of trade by using available waterways internally for local transportation of goods and subsequently through sea for intercontinental trades.
The trade has been growing steadily with each passing day from the inception and recognition of interdependence on each others products, be it agricultural or industrial. Countries which are rich in raw materials and have surplus tend to export these resources to other countries which are industrialised and able to use theses materials to produce finished material by value addition and re-export to the needy countries.
Like-wise the countries having agro based economy, depend upon agricultural produce for export of their surplus commodities, however, the countries do face a situation of trade imbalance when their imports outweigh exports by value. Pakistan is facing trade imbalance of 8 billion plus.
Shipping has witnessed various ups and downs from the very inception of this mode of transport and has undergone various technological changes. Without shipping, intercontinental, trade, the bulk transport of raw materials and the import / export of affordable food and manufactured goods would simply not be possible.
Of all the sectors that make up the global transport infrastructure, shipping probably has the lowest public profile and the least representative public image.
Today, we live in a global world, and it is certainly true that international trade among all the nations and regions of the world is nothing new. The history of the world is a history of exploration. Conquest and trade by sea. But there is no doubt that we have now entered a new era of global interdependence from which there can be no turning back.
In today's world, national boundaries offer little impediment to multi-national corporation. The process of globalisation has been made possible by the progressive dismantling of barriers to trade and capital mobility.
Fundamental technological advances, steadily declining costs of transport, communication and computing, its integrative logic seems inexorable, its momentum irresistible.
Looking back into history, we can trace the stages through which we have progressed to arrive at this new world order. As the world became more developed, proximity to new materials and to markets became the factors that, above all others, shaped the world's economy and,. In particular, the major trade patterns and shipping routes, today, international trade has evolved to the point where almost no nation can be fully self-sufficient.
Every country is involved, at one level or another, in the process of selling what it produces and acquiring what it lacks: none can be dependent only on its domestic resources. Shipping has always provided the only really cost-effective method of bulk transport over any great distance, and the development of shipping and the establishment of a global system of trade have moved forward together, hand-in-hand.
The eternal triangle of producers, manufacturers and markers are brought together through shipping. This has always been the case and will remain so for the foreseeable future.
Advance in technology have also made shipping an increasingly efficient and swift method of transport. Over the last four decades, total seaborne trade has more than quadrupled, from less than 6 thousand billion ton-miles in 1995 to over 27 thousand billion ton-miles in 2004 and continues to grow steadily. In the context of a global economy, the contribution made by shipping as a major industry in its own right is very significant, and increasingly so for the developing world.
Maritime activity already provides an important source of income to many developing countries, Indeed, developing countries now lead the world in some of shipping's most important ancillary business, including the registration of ships, the supply of sea-going manpower and ship recycling. They also play a significant part in shipowning and operating, shipbuilding and repair and port services, among others.
The history of shipping is a glorious and proud one. There is no doubt, for example, that the magnificent square riggers of the era of sail or the early ~ century's prestigious ocean liners could stir the hearts of all hose that beheld them. But the ships of today are just as worthy of our admiration, for shipping today is in another golden age.
Ships have never been so technically advanced, never been so sophisticated, never more immense, never carrier of so much cargo, never been safer and never been so environmentally-friendly after introduction of engine powered ships, as they are today.
Ships are high value assets, with the larger of them costing over US $100/150 million to build. Ships today are modern, technologically advanced workplaces. Although general cargo ships are still largest single category, among new ships is more and more in favour of specialisation for specific trades, ie edible/non-edible product carriers to LPG/CNG carriers. Tankers make up the second largest category.
Most large modern tankers are in the 200-3 00,000 tonnage range. The world's largest ship today is a 564,765 dwt tanker. Bulk carriers are often called the workhorses of the international shipping fleet that typically transport commodities such as grain, coal and mineral ores. Passenger ships come next in the world fleet league table. One of the finest modern examples of passenger liner is the Queen Mary II, built in France for Carnival Corp's Cunard in 2004. QM2 is the largest, longest, tallest, widest ocean liner over and has cost an estimated 800 million US dollars.
But the one sector which can be said to have transformed the face of shipping, certainly in the latter half of the 20~ Century, is that of container shipping. Unheard of before the 1 960s, the containers are now ubiquitous and the standard unit of cargo for just about every form of manufactured item on the planet.
Of all the sectors that make up the global transport infrastructure, shipping probably has the lowesr public profile and the least representative public image. In terms of efficiency, safety, the environment and its contribution to global trade, shipping is unmatched by any other transport sector.
History may be the harshest of judges but this is also true that no form of commercial transport is likely to emerge to challenge shipping as the carrier of world trade in the foreseeable future.
As far as maritime security is concerned, it is appropriate to recall the words of UN Secretary General Kofi Annan in his report to the 2005 world summit: "we will not enjoy development without security, we will not enjoy security without development, and we will not either without respect for human dignity. Unless all these causes are advanced, none will succeed".
Shipping affects us all. No matter where you may be in the world, if you look around you it is almost certain that you will see something that either has been or will be transported by sea, whether in the form of raw materials, components or the finished article. The sea knows no international barriers and the ship is as important now as it ever was, perhaps more so. Standards of living in the industrialised and developed world, the jobs and livelihoods of billions in the developing world, all depend on ships and shipping.
The shipping industry remains the most neglected sector of our economy, being 100% dependent on foreign flag vessels as far as containerised trade of over 1.8 mill teas handled at both ports and also bulk trade. Having achieved a peak of 71 Pak flag vessel's of 749,046 dwt, now we are left with only 14 ships out of which 11 are nearing 30 years and that too in public sector only.
A very serious thought is necessitated by the government to plan replacement of 11 public sector ship's and inducing private sector as on the pattern of India in 1980's when new ship owners were induced by, offering loan at 4%.
It is not only freight bill of USD 2 bill burden on our exchequer, but we cant discount the fact that we are totally dependent on foreign lines, who can dictate us further making our impo/expo incompetitive and creating trade imbalance of over 10 bill USD. PNSC is the last monument of Pak Merchant Marine, thus be supported, as merchant navy club has been razed to the ground.
Indian fleet of 450 Vessel's 8.8 million gross tonnage is a good example of public and private sector co-operation. The shipping corporation of India (public sector) 80% government owned enterprise earned a profit of 2.06 billion IRS (50.8 m USD) and owns 79 vessels. It is managed by shipping professionals and board comprising commercial maritime members.
The chairman is optimistic to spend 3 billion USD to get 100 mark. SCI Chairman insists on level playing field in order compete with all players with edge on professional skills. Indian impo/expo is going to touch 1 / billion tons mark by 2010 compared to Pakistan 58 million tons which may touch 70/75 million tons by 2010.
I fail to understand, how any country can ignore this sector which is the lifeline of the country. The old adageis" who rules the sea, rules the world, ". Form a think tank of professionals and business related people to suggest how to overcome the problem of industry. There is no dearth of skilled shipping experts who may volunteer if given recognition in their country. Pakistanis have established Neptune orient line of Singapore and Abudhabi tanker company and many more.
(The writer is Ex. Additional Secretary & Director General Ports & Shipping Ex. Chairman Gwadar Port, Member Board Port Qasim Authority, Governor World Maritime University Malmao (Sweden) Member (IMO Secretary General's Panel of Experts, London).