By Dr. Oladokun Sulaiman Olanrewaju

Introduction to Shipping and Introduction to Shipping and Marine Engineering Marine Engineering

MERCHANT SHIPS MERCHANT SHIPS FUNCTIONFUNCTION

Early stage, steam reciprocating engines was Early stage, steam reciprocating engines was recognized as an important transport vessel at recognized as an important transport vessel at the end of the 19the end of the 19thth century century

Merchant Ships Classified :-Merchant Ships Classified :--- Passenger ShipsPassenger Ships-- Cargo & passenger ShipsCargo & passenger Ships-- Cargo ShipsCargo Ships

Cont -Cont -

However with development of air planes, However with development of air planes, all have been taken over in their place. At all have been taken over in their place. At present, passenger ships are mainly use present, passenger ships are mainly use for luxurious sight seeing cruise shipsfor luxurious sight seeing cruise shipsThe cargo ship changed into so called The cargo ship changed into so called specific cargo carrying ships as a result specific cargo carrying ships as a result different variety of ships such as oil different variety of ships such as oil tankers, timber carrier, cement carrier, etc.tankers, timber carrier, cement carrier, etc.

THE ROLE OF THE ROLE OF SHIPPINGSHIPPING

IN IN INTERNATIONAL INTERNATIONAL

TRADETRADE

Transport of good by sea is the Transport of good by sea is the cheapestcheapest form of transport and till some time ago it was form of transport and till some time ago it was also the cheapest form of transport for also the cheapest form of transport for passengers. passengers.

Little wonder than that countries ‘big & small’, Little wonder than that countries ‘big & small’, depend on merchant ships to transport depend on merchant ships to transport cargoes in large quantitiescargoes in large quantities & to help & to help finance finance their international trade (adding not more than their international trade (adding not more than 1% of the total cost of the product). 1% of the total cost of the product).

The only real competition to shipping is road The only real competition to shipping is road transport but this also is transport but this also is limitedlimited to small to small quantities and over small distances or in land quantities and over small distances or in land locked countrieslocked countriesMerchant shipping thus plays a very important Merchant shipping thus plays a very important role in role in nation buildingnation building. Without merchant ships, . Without merchant ships, there would be no trade and without trade a there would be no trade and without trade a nation cannot grow.nation cannot grow.

Merchant shipping plays a very important Merchant shipping plays a very important role not only in international trade but also role not only in international trade but also domestic tradedomestic trade. This is specially true for . This is specially true for countries which are build up around the countries which are build up around the archipelago such as Indonesia, Philippines archipelago such as Indonesia, Philippines or Greeceor Greece

FACTOR INFLUENCINGFACTOR INFLUENCING

WORLD TRADEWORLD TRADE

World trade and its development is depend upon World trade and its development is depend upon a complex pattern of conditions that exist in a a complex pattern of conditions that exist in a country and relations between the various country and relations between the various countries of the world.countries of the world.These conditions and relationships will vary in These conditions and relationships will vary in their influence on the world trade through time, their influence on the world trade through time, location and situation and may act in conjunction location and situation and may act in conjunction with or at times in opposite direction to each with or at times in opposite direction to each otherother

VARIOUS FACTOR VARIOUS FACTOR classificationsclassifications

GeneralGeneralEconomic ResourcesEconomic ResourcesMarket ConditionsMarket ConditionsPolitical FrameworkPolitical FrameworkTechnological DevelopmentTechnological DevelopmentFinancial Situation & Payment ConditionsFinancial Situation & Payment Conditions

GeneralGeneral

The present individual division of countriesThe present individual division of countries

The behavior of countries and individualsThe behavior of countries and individuals

The size and composition of the The size and composition of the populationpopulation

Economic ResourcesEconomic Resources

The natural resources and their spread The natural resources and their spread among countriesamong countriesThe law of comparative advantageThe law of comparative advantageThe national income and the stages of The national income and the stages of economic developmenteconomic developmentGeographic and climatic conditionsGeographic and climatic conditionsThe availability of labourThe availability of labourThe growth in basic productive industriesThe growth in basic productive industries

Market ConditionsMarket Conditions

The present international trade systemThe present international trade systemThe systems of tariffs and customary The systems of tariffs and customary practicepracticeThe development of individual world pricesThe development of individual world pricesThe changing of habits and sales promotionThe changing of habits and sales promotionThe share of each country’s export as The share of each country’s export as related to world exports by groups of related to world exports by groups of commoditycommodityThe diversification of exports by countryThe diversification of exports by country

Political FrameworkPolitical Framework

The political division of the worldThe political division of the worldThe stability of the national political systemThe stability of the national political systemThe governmental influenceThe governmental influenceThe system of international co-operation, The system of international co-operation, discrimination and long range trade discrimination and long range trade agreementsagreements

Technological DevelopmentTechnological Development

The transport apparatus and the transport The transport apparatus and the transport linkslinksThe general technological systemThe general technological systemThe possibilities for substituting raw The possibilities for substituting raw materialsmaterialsThe spread of multinational companies The spread of multinational companies and their international behaviorand their international behavior

Financial Situation and Payment Financial Situation and Payment ConditionsConditions

The availability and conditions of The availability and conditions of international financeinternational financeThe general debt burden, debt service and The general debt burden, debt service and credit ratingscredit ratingsThe external assistance and general The external assistance and general development aid to developing countriesdevelopment aid to developing countries