by The rapid increase in world trade in the past decade has restructured the global maritime industry and has brought about new developments, deregulation, liberalization and increased competition.
There have been dramatic changes in the mode of world trade and cargo transportation, characterized by the prevalence of business-to-business and integrated supply chains. These changes have been embodied in the increasing demand for value-added logistics services and the integration of various transportation modes.
As a consequence, high-quality logistics services and the effective and efficient integration of transport and logistics systems offered by a maritime operator (i.e. a shipping company or port/terminal operator) has become an important issue.
Maritime logistics has been traditionally regarded as the primary means of transporting parts and finished goods on a global scale and has recently attracted considerable attention from academics and practitioners alike.
However, the term ‘maritime logistics,’ is not easy to define and its precise definition, scope and role within global supply chains are yet to be established.
On the one hand, maritime transport (i.e. shipping and ports) is clearly concerned with the transportation of goods and/or passengers between two or more seaports by sea; on the other hand, logistics is the function responsible for the flow of materials from suppliers into an organization, through operations within the organization and then out to customers.
A supply chain is composed of a series of activities and organizations that materials (i.e. raw materials and information) move through on their journey from initial suppliers to final customers.
Supply chain management involves the integration of all key business operations across the supply chain.
In general, logistics and supply chain management relate to the coordinated management of the various functions in charge of the flow of materials from suppliers to an organization through a number of operations across and within the organization, and then reaching out to its consumers.
Based on this clean-cut understanding, in 2006 Photis Panayides, one of the authors of Maritime Logistics, further elaborated on the issue of convergence of maritime transport and logistics.
These two terms are largely attributed to the physical integration of modes of transport facilitated by containerization and the evolving demands of end-users that require the application of logistics concepts and the achievement of logistics goals. At the centre of maritime logistics is, therefore, the concept of integration, be it physical (intermodal or multimodal), economic/strategic (vertical integration, governance structure) or organizational (relational, people and process integration across organizations) as an ongoing attempt to create greater value for shareholders.
At the cutting edge in its assessment of the industry, Maritime Logistics covers the whole scope of maritime logistics and examines latest logistical developments within the port and shipping industry.
Benefits.
Economical
Hands down, the ocean shipping industry offers the most competitive freight costs to shippers, especially over long distances. By comparison, some estimates show that ocean freight shipping costs are generally four to six times less expensive than air. With statistics like this one, it is easy to argue that ocean transportation is the cheapest international shipping option.
Efficiency
No matter the size of your shipments, sea freight companies can usually accommodate your needs. Smaller shipments can be grouped together with other cargo to fill a container, allowing for cost-sharing of the transportation services. Larger cargo can fill one or more containers, offering shippers unmatched bulk options. In fact, vessels are the ideal way to move high volumes of cargo as they are designed to carry large amounts of goods or raw materials.
Oversized, heavy and bulky cargo capability
A major advantage of sea freight shipping is shipping companies’ ability to handle oversized, heavy or bulky cargo often referred to as breakbulk or Not in Trailer (NIT) loads. Such cargo could include large vehicles, equipment, construction materials and more. Oftentimes too heavy or large for air freight or even over-the-road transportation, very large cargo is not a problem on many shipping vessels.
Safety
Ships are designed to carry hazardous materials and dangerous cargo safely. The industry is well-versed in the handling of such goods and has regulations in place to ensure the safety of the vessel, crew, cargo and environment. Cargo loss caused by incidents during transportation is continually dropping as maritime safety increases, and has dropped significantly in the past decade. Containers are designed to be sealed and locked during transportation for extra security.
Environmental friendliness
When compared to sea shipping, air and many other forms of transportation have much higher carbon footprints a definite disadvantage for the environment. Ships, on the other hand, provide the most carbon-efficient mode of transportation and produce fewer grams of exhaust gas emissions for each ton of cargo transported than any other shipment method. These already-low emissions continue to trend downward as technology advances, new ships come online and as liquefied natural gas (LNG)-powered options are utilized.
