Commercial Shipping Features

By | July 13, 2017

The salient features of commercial shipping can be summarized as under:

  1. Shipping of goods is an international activity perpetually exposed to change in the international environment.
  2. Commercial shipping is subjected to periodic cycles of depression and buoyancy in business.
  3. The highly capital-intensive nature of the industry necessitates
    1. Large financial resources, and
    2. Adequate utilization of capital.
  4. International mobility of ships generates competition on the global market.
  5. The commitments of liner shipping’s service require an adequate and captive cargo base for ensuring its continuation on a stable and viable basis for effective support of the trade.
  6. Traditionally, trade follows the established flags. But diversification of trade necessities promotional shipping services under the protective umbrella of the state.
  7. The establishment and expansion of national shipping in the third world countries would require financial and cargo support in the face of preponderance and intrusion of well-established shipping interests from developed countries with superior technology.
  8. The efficiency of shippings services and their cost depend mainly on the available port facilities.