Introduction

Maritime history is the study of human activity in the sea. It covers a broad thematic elements

of history often using a global approach, although national and regional history remains

dominant. As an academic subject, he often crossed the boundaries of discipline standard,

focused on human relations to understand the various oceans, seas, and major waterways.

Record nautical history and interpret past events involving ships, shipping, and sailors.

Maritime history is the subject of an extensive area including fishing, whale watching,

international maritime law, naval history, the history of the ship, ship design, shipbuilding,

shipping history, the history of various maritime related sciences (oceanography, cartography,

hydrography and so on other), sea exploration, maritime economy and trade, shipping,

yachting, seaside resort, history of lighthouses and aids to navigation, maritime theme in

literature, maritime theme in art, social history of sailors and sea passengers and related

communities.

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Merchant Industry

Merchant

- Is a businessman who trades in commodities produced by others, in order to make a

profit. Merchant status was changed in different periods of history and different

societies. Merchants often been the subject of works of art.

A merchant class characterizes many societies pre-modern. Its status can range from

high (although members have finally reached the title as the Merchant Prince or

Nabob) to low, such as in Chinese culture, which is considered as the distastefulness

benefit from "mere" trade instead of labor or labor others, such as in agriculture and

craftsmanship.

In the Greco-Roman world traders usually do not have high social status, even though

they have enjoyed great wealth, and there are exceptions, such as in Syria and

Palestine in the time-an, where the dealer does have a high social position.

Medieval attitude towards businessmen in the West have been influenced by criticism

of their activities by the Christian church, which is closely related to the activities of

their sin of usury.

From about 1300 to 1800 a large number of European and Chartered Merchant

Company was formed to exploit the opportunities of international trade, such as the

Company of Merchant Adventurers of London, chartered in 1407.

Industry

- Is the production of goods or services within an economical. The major source of

revenue of a group or company is the indicator of its relevant industry. When a large

group has multiple sources of revenue generation, it is considered to be working in

different industries.

Types of merchant

i. A wholesale merchant operates in the chain between producer and retail merchant,

typically dealing in large quantities of goods. Some wholesale merchants only

organize the movement of goods rather than move the goods themselves.

ii. A retail merchant or retailer, sells merchandise to consumers (including

businesses), usually in small quantities. A shop owner is a retail merchant.

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Merchant Navy/Merchant Marine

A merchant navy or merchant marine fleet of merchant ships are registered in certain

countries. Merchant ships, seafarers of various ranks and sometimes members of the maritime

trade union required by the International Convention on Standards of Training, Certification

and Watch keeping for Seafarers (STCW), to carry out the Merchant Mariner Document.

King George V bestowed the title of “Merchant Navy" on British merchant shipping fleet

after their service in the First World War ; since then several other countries have also

adopted the use of the title or any such thing , " Merchant Marine . " Here is a partial list of

the merchant navy or merchant marine from many countries. In many countries the right fleet

is capitalized version of a common noun (“Merchant Navy").

1. British Merchant Navy2. Canadian Merchant Navy 3. Greek Merchant Navy4. Indian Merchant Navy5. New Zealand Merchant Navy6. Pakistani Merchant Navy7. Polish Merchant Navy8. Swiss Merchant Marine9. U.S. Merchant Marine10. International Maritime Organization

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Merchant Ship

Merchant ship are ships that are primarily used either for carrying cargo or passengers.

Basically, the ships that are engaged in active commercial transportation fall in this category.

The navy ships or pleasure craft that don’t charge passengers are excluded from the category

of merchant vessels.

2005 registration of merchant ships (1,000 gross register tons (GRT) and over) per country.

Merchant vessels come in different sizes and shapes. It can be as small as a 6 m (20 ft) long

diving boat, or as big as ultra large crude carriers (ULCC) that can be up to 415 m (1,361 ft)

long. They are the main tool of ocean transportation, carrying crude oil and goods throughout

the world, in varied sizes of tankers, containers and bulk carriers.

Almost all countries in the world possess and operate merchant ships.  Currently, the Greek

merchant fleet is the largest in the world accounting for over 16% of the world’s total

tonnage.

The term "commercial vessel" is defined by the United States Coast Guard as any vessel (i.e.

boat or ship) engaged in commercial trade or that carries passengers for hire.

In English, "Merchant Navy" without further clarification is used to refer to the British

Merchant Navy; the United States merchant fleet is known as the United States Merchant

Marine.

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Types of Merchant Vessels

i. Dry Cargo Ships

Dry cargo ship is a term generally used for bulk carriers and container ships. While bulk

carriers are used in the transportation of bulk cargo such as grains, coal, ores and cement,

container ships are normally used for carrying miscellaneous goods.

ii. Bulk carriers

Bulk carrier is primarily used in carrying unpackaged bulk cargo items including grains, ores,

cement and other similar cargo. They comprise of 40% of the merchant fleets in the world.

They can be categorised in six major categories according to their size. The categories include

Small, Handysize, Handymax, Panamax, Capesize and Very Large. Their size can range from

a small mini-bulker to giant ships with a capacity of 400,000 dead weight tonnage (DWT).

South Korea is the largest builder of bulk carriers in the world. The size of a bulk carrier can

range from a small mini-bulker with a capacity of under 10,000 dwt to the giant capesize

vessels with a capacity of up to 400,000 dead weight tonnage (DWT) or even more.

iii. Container Ship

Container ships are ocean vessels that carry goods in large containers, a technique called

containerisation. Container ships are primarily used for the transportation of non-bulk cargo,

generally manufactured goods, in truck-size intermodal containers. They can be divided into

several categories according to their size. Main categories of container ships include such as

feeder, feedermax, Panamax, new Panamax, and ultra large. They play a dominant role in

international trade. The modern container ships have been designed to have a cargo capacity

of up to 15,000 twenty-foot equivalent units (TEU). They play a dominant role in

international trade.

iv. Tankers

Tankers are used for transporting crude oil, finished petroleum products, liquefied natural gas

(LNG), chemicals and other liquids in bulk. They play an important role in international trade

with a share of over 33% of the world tonnage. Tankers come in varied sizes ranging

from handy size tankers to ultra large crude carrier (ULCC) with a size ranging between

320,000 to 500,000 DWT.

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The first use of tankers in transporting bulk liquids dates back to the later years of the 19th

century. Before the advent of tankers, the idea of carrying bulk liquids in ships was

considered a costly and even an infeasible affair. In that period, the market was also not ready

for transporting or selling cargo in bulk. As a result, ships were used for transportation of a

wide range of products in their holds. Liquids including wines and fresh water were usually

loaded in casks. With the discovery and exploration of oil, tankers have emerged as the main

mode of transportation to carry crude and refined oil to ports across the world. Today, tankers

carry over 33% of the world tonnage.

Tankers can be classified on the basis of their cargo capacity as well as the type of product

they transport. On the basis of their purpose, they can be classified as oil tankers, chemical

tankers, LNG carriers, Slurry tankers, Hydrogen tankers, Wine tankers, Juice Tankers and

Integrated Tug Barges (ITB). Nowadays, super tankers like very large crude carriers (VLCC)

and ultra large crude carriers (ULCC - deadweight tonnage of up to

550,000) are being built to carry huge amount of crude and refined fuels across the continents.

After pipelines, super tankers are the second best method for transporting huge quantity of oil

in the world.

v. Passenger Ships

As the name suggests, passenger ships are primarily used for carrying passengers. It also

includes cruise ships that are mainly used for pleasure voyages.

vi. Specialised vessels

Specialised ships are designed in a way to transport specific goods such as vehicles and

machinery. Specialised vessels are those vessels that have onboard machinery and equipments

to perform various tasks related to marine industry. Specialised marine vessels include

Anchor Handling Tug Supply Vessels, Drilling Vessels, Well Intervention Vessels, Ice

Breaking Vessels, Cable Laying Vessels, Well Testing Services Vessels, Field Support

Vessels, Seismic Vessels, and Fire Fighting Vessels to name a few.

vii. Offshore Vessels

They are specially designed ships for transporting goods and personnel to offshore oil

platform that operate deep in oceans.  The size of these vessels ranges between 20 meters and

100 meters.  They are good at accomplishing a variety of tasks in the supply chain. The

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category may include Platform Supply Vessels (PSV), offshore barges, and all types of

specialty vessels including Anchor Handling Vessels, Drilling Vessels, Well Intervention

Vessels, Ice Breaking Vessels, Cable Laying Vessels, Seismic Vessels, and Fire Fighting

Vessels.

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Biggest Shipping Company in the World

1. A.P. Moller

A.P. Moller – Maersk Group is a conglomerate based in Copenhagen in Denmark that was

established in 1904. It is considered as the largest container ship operator and supply vessel

operator in the world. The company has held that distinction since 1996. It operates 600

vessels with 3.8 million TEU. It also owns the ship Emma Maersk, considered as the largest

container ship in the world. The company has a presence in 135 countries around the world.

2. Mediterranean Shipping Company S.A.

The Mediterranean Shipping Company S.A. is a shipping line based in Geneva in

Switzerland. Established in 1970, the company has a presence in all the major ports around

the world, though its most important port is the one in Antwerp in Belgium. It currently

operates 474 vessels with a total combined capacity of 2.3 million TEU. It has vessels with a

capacity of 13,800 TEU, including the MSC Beatrice and the MSC Emanuela, the latter of

which is considered to be one of the largest container ships in the world. It has been named as

Shipping Line of the Year six times in a span of 11 years starting from 1996

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3. CMA CGM S.A.

CMA CGM S.A. is a transportation container and shipping company based in Marseilles in

France, with a North American headquarter in Norfolk in Virginia. It traces its roots to 1851

with the founding of Messageries Maritimes, or MM, which merged with a company called

Compagnie Generale Maritime, or CGM. CGM was a state company that was privatized in

1996 and sold to Compagnie Maritime d’Affretement, or CMA. As CMA CGM, it went on to

buy the Australian National Lines and Delmas of France. The company now has 200 routes

operating in 400 ports in around 150 different countries.

4. Evergreen Marine Corporation

Evergreen Marine Corporation is a shipping company founded in 1968 and based in Taiwan.

It has over 150 ships that call on 240 ports around the world in around 80 countries. Its ships

are easily distinguishable by the color green and the word Evergreen painted prominently on

the side of the ships. The company also owns another company in Taiwan called Uniglory

Marine Corp., and has subsidiaries in the United Kingdom called Evergreen UK Ltd. and Italy

called Italia Marittima S.p.A.

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5. China Ocean Shipping Container Line

China Ocean Shipping Container Line, or COSCO, is a provider of shipping and logistics

services based in China. The company was established in 1961. Its main lines of businesses

are freight forwarding, shipbuilding, ship repairing, and operation of terminals. It is the largest

liner carrier and dry bulk carrier in China, and one of the largest dry bulk shipping operators

in the world. It has more than 300 subsidiaries and owns and operates around 550 ships. Its

total carrying capacity is 30 million metric tons deadweight.

Shipping Route over Century

16th Century

21th Century

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Merchant shipping in Malaysia

Shipping is the lifeline of the economy, plays a vital role in driving our exports and imports,

serving an important link in the overall national transport system, and provide employment to

many. In order to become a global, maritime competitiveness, the rapid development of the

maritime industry and the increasing complexity has led to a growing demand for ancillary

capital and financial products and services.

Malaysia has embarked on a journey towards setting up its own commercial shipping

company in the late 1960s to serve its own exports and to address balance of payments

difficulties due to the absence of the national carrier. Encouragement also comes from the

dissatisfaction of the local shipping companies in the rates charged by shipping conferences

cargo handling most of Malaysia.

The establishment of the national airline, MISC in 1968 with equity participation of the

government marks an important milestone in the development of modern commercial

shipping in the country.

PETRONAS buys a 29 percent stake in MISC and took over its management in 1997,

marking another historic progress in the transformation of the company into the leading ship.

Its growth has been further enhanced with the acquisition of 'Smelting' and 'PNSL' in 1998.

The merger MISC with PETRONAS Tankers in the same year increased its stake in the

company to 62 percent.

Today, MISC has grown into top world’s largest shipping operators with over 100 vessels.

MISC has a modern and well-diversified relatively young fleet of 27 LNG tankers, making it

the world's single largest owner operator of LNG tankers.

Besides MISC, major commercial shipping companies such as Malaysian Merchant Marine,

Halim Mazmin, Nepline, Gagasan Carriers, Global Carriers, Malaysia Bulk Carrier, Wawasan

Shipping also have modern and well-diversified fleet, plying the world’s oceans carrying all

types of cargos and loads. Some are listed on Bursa Malaysia and most are members of

Malaysian Ship-owners Association (MASA).

As of 1 January 2008, Malaysia had 392 vessels of 1,000 GT and above with a combined

tonnage of 11.17 million DWT, making it the 20th largest controlled merchant fleet in the

world.

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The local shipping sector has benefited from substantial rise in the country's foreign trade and

the rising demand for shipping services. The cargos carried by Malaysian ships consist mainly

of its export products, heading mainly to our largest trading partners which include the US,

Singapore, Japan, China, Taiwan, Korea, Germany and UK.

Malaysia has also made great strides in ship financing to support the growth of the shipping

sector. The establishment of Bank Industry in 1979 was testimony to its intent to develop the

shipping sector.

The bank earmarked shipping as a prime sector to benefit from its loans provided at special

rates and terms. The creation of a shipping fund in 1992 was another show of support by the

government towards shipping. From the fund, US$2250 million was set aside for the ship

financing facility, directly managed by Bank Industry, and US$140 million for the Shipping

Venture Fund.

In 1994, another US$84 million was added to the fund aimed at financing expansion of

shipyard capacity to build larger vessels. In the 2000 budget, the government announced

another US$280 million to replenish the fund.

These funds were made available to shipping players at further to this, a shipping venture

capital company, Global Maritime Venture (GMV) was formed in 1994 to act as a catalyst to

the maritime sector by forming strategic alliances with Malaysian partners involved in the

maritime sector.

In addition to shipping activities, Malaysia also has several shipyards of international class,

albeit limited in their building capacity. Generally, they have a maximum building capacity of

around one million DWT and a majority of them is dedicated to ship repair. This inadequacy

continues to force local shipping companies to purchase vessels and commission major

reparation works from foreign shipyards. The biggest shipyard, Malaysian Marine & Heavy

Engineering became a subsidiary of MISC in 2004, marking a huge leap forward in taking the

industry to greater heights.

Malaysia can rightfully boast of having a shipping sector which is internationally competitive

and capable of leveraging on the strengths that the country has in maritime transport shipping

and other supporting activities. But despite the steady growth of its national fleet and the

shipping sector over the years, Malaysia still has some way to go towards achieving self-

sufficiency in shipping.

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The government’s commitment in promoting commercial shipping in Malaysia is underlined

by the many fiscal, financial, administrative and legislative efforts it has taken. In promoting

local commercial shipping, the government offers attractive financial incentives to shipping

players which include:

Tax exemption on income derived from activities involving Malaysian ships, applicable only

to Malaysian residents,

Tax exemption on income of any person employed on board a Malaysian ship,

Competitive financing in the form of shipping loan and venture funds.

The government also encourages activities in the country that provide training for maritime

personnel. Departments teaching marine technology and marine science have been set up at

public universities. The government also lends its support to many local and international

training programmes, seminars and conferences held in the country. It actively promotes

seafaring as a profession to Malaysian youths through promotional activities, financial

incentives and institutional support to reduce our dependence on foreign seafarers.

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i. Maritime support services

There is a wide variety of maritime support services in Malaysia focusing on providing

support to ports and shipping companies and facilitating maritime trade. A number of

companies are involved in these activities, as shown in Table 1.

Table 1: Number of companies offering ancillary services

Service Number of companies

Cargo handling 165

Freight broker 13

Cargo clearance 52

Logistics management 50

Shipping agencies 733

Stevedoring contractors 24

Storage 28

Freight forwarding 1,084

Customs clearance 71

Warehouses 222

Source: www.eguideglobal.com.my

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Number of companies0

200

400

600

800

1000

1200

Number of companies offering ancillary services

Cargo handling Freight broker Cargo clearanceLogistics management Shipping agencies Stevedoring contractorsStorage Freight forwarding Customs clearanceWarehouses

Malaysia’s resolve to attract foreign participation is clearly evident in the maritime sector.

Although the Malaysian Government is committed to developing the maritime industry and

encourage local participation, Malaysia very much welcomes the involvement of foreign

players in the sector. Aware of the fact that the maritime sector is one of the most

international of activities, Malaysia acknowledges the need to welcome the participation of

foreign companies, many of which have greater capacity, experience, skills and knowledge

than local players, in the maritime sector.

The presence of foreign companies in activities such as logistics, shipping, ship classification

and ship management underlines Malaysia’s openness to foreign investment, resources and

talents to help develop its maritime industry.

Malaysia’s openness is also evidenced by the privatisation of federal ports, and by allowing

foreign companies to hold equity stake in local ports and by granting foreign shipping lines

permission to provide services in the domestic shipping under certain conditions. These mark

Malaysia’s commitment to liberalise its economy and integrate it with the global economy in

order to enlarge its share of the global trade.

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The General Agreement on Trade in Services (GATS) under the aegis of World Trade

Organisation (WTO) has delineated six main support services in the maritime industry. These

activities, also termed as maritime ancillary services, are as follows:

i. Cargo handling

ii. Storage and warehouse

iii. Customs clearance

iv. Container station and depot

v. Maritime agencies

vi. Maritime freight forwarding

Although many local players are involved in these activities, the development of the maritime

support services sector is neither backed by a coherent strategy nor by a structured, long-term

development approach. This results in non-linkage between the activities with one another

and also between the maritime sector and other production sectors of the economy.

ii. List of Malaysian Shipping Company

1. Inter Maritime Management Owner, Manager Malaysia Kuala Lumpur

2. Yayasan Sabah Shipping Sdn Bhd Owner, Manager Malaysia Kota Kinabalu

3. MISC Bhd Owner, Manager Malaysia Kuala Lumpur

4. Prima Shipmanagement Owner, Manager Malaysia Kuala Lumpur

5. Bormill Line Sdn Bhd Owner, Manager Malaysia Kuching

6. Malaysia Shipyard & Eng Port Service Malaysia

7. Malaysian Shipowners' Assoc Maritime Organisation Malaysia Kuala Lumpur

8. Sabah Shipyard Sdn Bhd Shipbuilder, Repairer Malaysia

9. Akademi Laut Malaysia (ALAM) Other Malaysia Masjid

10. Bumi Armada Navigation Sdn Bhd Owner, Manager Malaysia Miri

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CONCLUSION

In conclusion, merchant ship is one of the main assets for our industrial maritime trade. It is

the main source of income for our country in the maritime channel. Freight forwarding

activities in the country by boat trade, export and import activities even more using this

method between one country and another. There are different types of merchant ship that was

used in the industry. E.g. dry cargo vessels, bulk carries, container ship, passenger ship, tanker

ship specialized ship and offshore vessel. Industrial companies’ trade also played an important

role towards our economic structure. Malaysia’s port was ranked as top 20 world busiest port

which this indicates we are depends most on transporting goods through waters.

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References

http://maritime-connector.com

http://www.marineinsight.com

https://en.wikipedia.org

K. Van Dokkum(2003). Ship Knowledge (A Modern Encyclopedia)

http://www.marine.gov.my

http://www.bairdmaritime.com

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