Law globalizations causes 3. Impacts of globalization 4.

 

 

                       Law of Carriage of Goods
by Sea

  The impacts of
globalization on international maritime 
transport over the past  ten years

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Module: ( International
Trade & Shipping DLITSM501) 

Student Name & ID: Vasiliki Podara

Student ID: st013557

Instructor Name: Dr. Robyn Pyne

December 2017

 

 

 

 

 

                          TABLE OF
CONTENTS

 

 

 

1.   
Introduction

2.   
The globalizations causes

3.   
Impacts of globalization

4.   
Case study

5.   
Conclusion

6.   
References

 

 

 

 

 

 

 

 

This paper is going to discuss the impacts of
globalization on international maritime transport over the past 10 years.

Globalization spurred shipping industry and
this brings both good and bad impacts and i will analyze the environmental impacts of maritime transport activities.

 

 

 

 

 

 

 

 

 

 

 

 

  INTRODUCTION

World trade and maritime transport are fundamental to sustaining
economic growth and spreading prosperity throughout the world, thereby
fulfilling a critical social as well as an economic function. The marine transportation system is a
network of specialized vessels, the ports they visit, and transportation
infrastructure from factories to terminals to distribution
centers to markets. Is a
necessary complement to and occasional substitute for other modes of freight
transportation. For many commodities and trade routes, there is no direct
substitute for waterborne commerce.1 

 International maritime transport costs tend
to be on average between two to three times as high as custom duties of
importing countries. It is the cheapest way of transporting large amounts of
goods compared to other transport methods. Furthermore, maritime
transport will be indispensable in a sustainable future global economy as it is
the most environmentally sound mode of mass transport, both in terms of energy
efficiency and the prevention of pollution.2

Marine
transportation, international sea trade and globalization will follow the
economic development that results from increased consumption of products and
services mainly in industrialized countries’ markets. The future of marine
transportation will be affected by economic crisis but also by safety of
communication lines free of terrorist and piracy challenges.

Demographic changes and shifts in
valuing different commodities, services and consumption methods as a result of
dematerialization of the social culture. The demand for transportation services
will generate new environmental threats that must be removed by ship owners and
international organizations along the lines set by the sustainable, “Blue”
economy. 3
           

 

 

 

 

 

The Globalization causes

As
the global economy struggles to regain its momentum following the recession,
it’s clear that shipping   will be
instrumental in making it happen.

According to the Ashkenas  Jick & kern 1995 the main causes for
globalization are referred to as the

·       Survival in a competitive world through cost
reductions, profit margins, economies of scale and local preferences

·        Desire
to disperse or expense for various capital intensive investment Desire or need
to generate profit, since the first companies entering a market will get the
portion the lion, while the rest are the rest.

·        Expanding to new territories and regions.  The benefit deriving from the successful
abolition and is a generating cause and other benefits. The pursuit of
innovation and the adoption of new technology that removes geographical
boundaries and time barriers. Comparing a company’s work with the others,
showing the need to imitate or to adopt the practices of the other company. The
decision to follow a customer in another country.4

 

 

 

 

 

 

 

 

 

 

 

 

 

IMPACTS OF GLOBALIZATION IN SHIPPING INDUSTRY

 

 

  With increased ease of travel and shipping and decreased
trade barriers, consumers and businesses have more access to goods and
services, says David Kilgour, a former member of the Canadian Parliament. This
helps businesses obtain things they might not have been able to get before and
allows them to make things better or cheaper.. Small-business owners can take
advantage of globalization by advertising and selling their items to more
markets via the Internet and ship them using an exporter.

 

·       Positive Impact

·       More access to goods and
services

·       Evolution  of new business 

·        Labors are needed to preserve the companies running

·       Plenty of job opportunities offered

·       Reduces unemployment Increased
Global Production

·       Rise in demands of goods and
products from customers all over the world

·       Manufacturers and suppliers need to
deliver their goods to the customers

·       There will be an increase in demand
for shipping services especially on seasonal occasions

 

 

 

 

·       Negative Impact

·       Environmental Impact

·       Air Pollution – Emission of Carbon
Dioxide and Sulphur Oxide

·       Water Pollution – Shipping accidents
causes oil spill
– Disposal of garbage into sea water

·       Sound Pollution – Loud noises
produced by engines at 
the harbor

·       Uneven Benefit to Local Investors

·       Investments needed for ports and
businesses need to expand to accommodate bigger ships

·       Foreign investors can offer bigger
investments compared to local investors
Therefore, local investors do not get as much share as
foreign investor 

 

 

 

 

The environmental impacts of maritime
transport activities.

The environmental impact of shipping includes greenhouse gas
emissions, acoustic, and oil pollution. The International Maritime Organization
(IMO) estimates that Carbon dioxide emissions from shipping were equal to 2.2%
of the global human-made emissions in 2012 and expects them to rise 50 to 250
percent by 2050 if no action is taken.5

Each maritime transportation activity occurring in ports, at sea
or during ship construction/maintenance/dismantling, presents different
environmental impacts, on air, water, ecosystem and other. Together with these
impacts also those deriving from accidental events or illegal actions have to
be considered when evaluating the overall contribute of the maritime
transportation sector to environmental quality.6

 

 

 

 

MAIN
EMISSIONS FROM SHIPS:

1. Petroleum (crude oil, mazut)

2. Wastes (household-functional)

3. Gaseous emissions

4. Waste

5. Chemicals7             

 

Petroleum products: 8

• Used mineral oils

 •
Fuel residues

 •
Residues

• Unclean ballast

• Tank washes

The sources of the above are: natural
(natural outflows), marine (accidental and deliberate) and land (discharges,
rain water, river discharges).

 

Trash:

• Households: food waste, packaging materials,
bottles, paper

 •
Functionally: maintenance waste, cargo, ash, pallets, straps, fishing nets,
animal feces, investment materials. The sources of the above are either land or
sea. The terrestrial are mainly due transport of waste (through rivers, from
seaside, industrial and commercial) tourist infrastructures). Marine vessels of
various types  (commercial, fishing, war
etc.)

 

 

 Air Emissions:

• Exhaust emissions (nitrogen, oxygen,
water vapor, carbon dioxide, carbon monoxide carbon oxides of sulfur,
hydrocarbons)

 •
Other substances that deplete the ozone layer, derived from the ship
refrigerators, air conditioning and fire extinguishing systems. Shipping
consumes less per unit of output than the rest transport and emit less harmful
gases into the atmosphere (especially its dioxide coal). The exhaust gases of
the ships contribute to the “cooling” of the climate and not to the
heating of. So despite its impressive participation in world trade, which it
touches 90% of global transport shows that it is facing its crucial issue
climate change and global warming, shipping should be considered as a best
choice to meet the ever-growing global demand for them transport services.

 

9

 

Estimated Impacts on Water

 

 Water pollution In general
it is observed that there are no detailed information on emissions in water.
This is because, contrary to the air emissions, it is difficult to calculate
emission factors for water. However, some estimates indicate that normal shipping
operations are responsible for over 70% of the oil entering the sea from marine
transportation, but as the oil is often spread over a large number of
locations, the effects of operational discharges may appear less dramatic than
the often catastrophic localised effects of accidental oil spills. 10They
do, however, give rise to a number of chronic pollution problems, particularly
in low energy environments such as ports and harbours. Statistics show that 80%
of oil spills occur in harbour waters. Clearly, these are not the only wastes
discharged by ships. Other vessel discharges may be equally hazardous but to
date have generally received less public attention because they are subtler and
less visible, e.g. chemical discharges. Furthermore, there are arguably less
hazardous but highly visible discharges in the form of garbage. (Ball, 1999).11

 

 

 

 

 

 

 

 

 

Estimated Impacts on Ecosystem

 

 

 Biodiversity loss and
habitat degradation As already mentioned, the study by Cofala et al. (2007)
assesses health and environmental impacts of the shipping emission scenarios,
extending the IIASA RAINS/GAINS integrated assessment model. In particular, they
used the loss in statistical life expectancy attributable to anthropogenic
emissions of PM2.5 as a health impact indicator. The value of that indicator is
highly country- and scenario-specific . Moreover, they considered the number of
cases of premature deaths attributable to the human exposure to ground-level
ozone.12

 

 Finally, regarding
estimates of the protection of all ecosystems against eutrophication, Cofala et
al. (2007) included forests, semi-natural vegetation, and freshwater catchments
and, in particular, the total ecosystems area with nitrogen deposition above
critical loads for eutrophication. As concerns the negative effects on the
ecosystem determined by discharge of ballast water, described in the section on
the impacts, the literature review highlights that estimation of ballast water
volume have been done. 13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conclusion

Because shipping is a
service business, ship demand depends on several factors, including price,
speed, reliability and security. It starts from the volume of trade, how the
commodity trades can be analysed by dividing them into groups which share
economic characteristics, such as energy, agricultural trades, metal industry
trades, forest products trades and other industrial manufactures

 

REFERENCES

·       
Worldwide
Maritime Logistics Supply Chain Jobs”

·       
http://www.imo.org/en/OurWork/Environment/PollutionPrevention/AirPollution/Documents/Third%20Greenhouse%20Gas%20Study/GHG3%20Executive%20Summary%20and%20Report.pdf

·       
http://www.imo.org/en/OurWork/Environment/PollutionPrevention/AirPollution/Documents/Third%20Greenhouse%20Gas%20Study/GHG3%20Executive%20Summary%20and%20Report.pdf

·       
https://www.researchgate.net/publication/38021938_Emissions_of_maritime_transport_A_European_reference_system

·       
http://marine-electronics.eu/sulfur-regulations-in-shipping-industry-from-2020

·       
https://www.sei-international.org/mediamanager/documents/Publications/SEI-ProjectReport-LPersson-ImpactsOfPollutionOnEcosystemServices.pdf

·       
https://www.oecd.org/greengrowth/greening-transport/45095528.pdf

·       
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3357785/

·       
http://www.dap-papei.gr/~dapndfk/images/tmimata_arxeia/nautiliako/simeioseis/6o_examino/ripansi_kai_nautilia_.pdf

·       
https://pdfs.semanticscholar.org/b2a8/134fae8f81ddf4453c7e240b5791b4d7dac5.pdf

 

ONLINE BOOKS
&BOOKS

 

·       
Air and Water
Pollution: Burden and Strategies for Control Kjellstrom, Madhumita Lodh, Tony McMichael, Geetha Ranmuthugala, Rupendra
Shrestha, and Sally Kingsland. (ch 43)

·       
Cofala, J., Amann, M. et al. (2007) “Scenarios
of global anthropogenic emissions of air pollutants and methane until 2030.”

·       
Corbett J.J., Winebrake J. – The Impacts of
Globalization on International Maritime Transport Activity: Past Trends and
Future Perspectives. OECD/ITF Global Forum on Transport and Environment,
Guadalajara, Mexico,

·      
Pimentel, D., Lach, L., Zuniga, R.,
& Morrison, D. (2002). Environmental and economic costs associated with
non-indigenous species in the United States. Biological Invasions:
Economic and environmental costs of alien plant, animal, and microbe species,
285-306.

·      
Buck, E. H. (2010). Ballast water
management to combat invasive species.

 

 

1 https://www.oecd.org/greengrowth/greening-transport/45095528.pdf

2  Worldwide Maritime Logistics Supply Chain Jobs”

3
Corbett J.J., Winebrake J. – The Impacts of Globalization on International
Maritime Transport Activity: Past Trends and Future Perspectives. OECD/ITF
Global Forum on Transport and Environment, Guadalajara, Mexico, November 10-12,
2008

4
Ashkenas, R., Ulrich, D., Jick, T. and Kerr, S. (1995) The Boundaryless
Organization, San Francisco, CA: Jossey-Bass.

 

5

Maritime Pollution

6
 Third IMO GHG Study 2014 (PDF), International Maritime Organization

7 http://www.dap-papei.gr/~dapndfk/images/tmimata_arxeia/nautiliako/simeioseis/6o_examino/ripansi_kai_nautilia_.pdf

8 Air and Water
Pollution: Burden and Strategies for Control Kjellstrom, Madhumita Lodh, Tony McMichael, Geetha Ranmuthugala, Rupendra
Shrestha, and Sally Kingsland. (ch 43)

 

9
http://www.oecd.org/greengrowth/greening-transport/41380820.pdf

10
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3357785/

11
https://pdfs.semanticscholar.org/b2a8/134fae8f81ddf4453c7e240b5791b4d7dac5.pdf

12 Pimentel, D., Lach, L., Zuniga, R.,
& Morrison, D. (2002). Environmental and economic costs associated with
non-indigenous species in the United States. Biological Invasions:
Economic and environmental costs of alien plant, animal, and microbe species,
285-306.Buck, E. H. (2010). Ballast water management to combat invasive
species.

 

13
Cofala, J., Amann, M. et al. (2007) “Scenarios of global anthropogenic
emissions of air pollutants and methane until 2030.” Atmospheric Environment
41(38): 8486-8499.