International Logistics: Ocean Transportation

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With the rapidly growing global economy and the development of interstate supply chains, which is especially relevant for transnational companies, the phenomenology of ocean transport turns out to be most relevant. In general, this mode of transport should be understood as a synthesis of liners and tramp vessels, which make it possible to move goods between different countries and even continents. Obviously, for countries whose economies are built on import-export policies, such transport proves to be a vital tool for enriching budgets and acquiring resources. The purpose of this essay is to explore the phenomenon of international ocean transport and to assess its significance for the world economy.

First of all, it is necessary to consider the mechanical part of this transport in order to formulate an understanding of its significance. Specifically, when one country wishes to deliver goods to another, this requires the physical transfer of products between the two points. Obviously, there are better solutions than the use of the roadway, especially for transoceanic transportation. On the contrary, air transport as a potential solution is also proving to be of little use because the cargo capacity of such an aircraft needs to be improved. In this case, cargo liners and tramp vessels are the ideal solutions, which cover the need for cargo capacity, relative cheapness, and speed of moving goods (Pino, 2021). The actual difference between a cargo liner and a tramp vessel is only how exactly the vessel is run (DL, 2022). Specifically, cargo liners sail on a predetermined schedule and to specific ports. This means that if no force majeure has occurred, the receiving port can always expect a transport liner to arrive on a particular day. Tramp vessels, on the other hand, do not have a strictly defined schedule and are analogous to charter flights. This type of transport is convenient when there is an unplanned need for transportation or there is no regularity of flights between two ports.

The flexibility of transport accessibility between ports allows companies to be confident that their product will arrive within the expected period. In todays international and supply chain economy, this certainty is a necessary guarantee of commercial success. No matter what type of product needs to be transported, organizations or even governments can turn to international ocean transport services. This can include not only food, textiles, and clothing but also natural resources, including oil (Coronado et al., 2021; Menon, 2021). In fact, when a consumer sees a non-domestic product on store shelves, there is a high probability that it was delivered via the ocean route.

Despite the benefits that international ocean transportation creates for the global economy, it is a sensitive mode of transportation. Weather conditions, gale-force winds, and drastic changes in water behavior can cause shipwrecks, affecting not only the death of the ships personnel but also the loss of goods. At the same time, history knows the example of global crises caused by problems with cargo liners. This refers to the jamming of a vast container ship in the Suez Canal in 2021 (Yee & Glanz, 2021). In addition, during COVID-19, many transport companies were forced to suspend their operations due to threats of the virus, which also caused delays in shipments (Kamal et al., 2022). As a consequence, cargo traffic can be disrupted by a multitude of factors, not all of which prove to be easily managed.

In conclusion, oceanic interstate transport is the most relevant and frequently used mode of transport in global supply chains. A large number of companies around the world, including governments, use cargo ships to transport products, which determines the fundamental importance of such transportation to todays global economy. It is obvious, and there have been examples of this, that disruptions in transportation logistics will create problems for the commercial success of companies and product availability, causing economic crises. This paper discussed the unconditional importance of cargo liners and tramp vessels for international transport and discussed the main barriers that can affect the efficiency of such transportation.

References

Coronado, A. E., Coronado, C. E., & Coronado, E. S. (2021). Managing the food supply chain in the age of digitalisation: a conceptual approach in the fisheries sector. Production Planning & Control, 32(3), 242-255. Web.

DL. (2022). Difference between liner shipping and tramp shipping. Daily Logistics. Web.

Kamal, M. R., Chowdhury, M. A. F., & Hosain, M. M. (2022). Stock market reactions of maritime shipping industry in the time of COVID-19 pandemic crisis: an empirical investigation. Maritime Policy & Management, 49(8), 1184-1199. Web.

Menon, H. (2021). What are liner services and tramp shipping? Marine Insight. Web.

Pino, D. (2021). Why not just put freight on planes? NR. Web.

Yee, V., & Glanz, J. (2021). How one of the worlds biggest ships jammed the Suez canal. The NYT. Web.

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