Three Reasons Why Maritime Transport Is The Key For The World-Trade
After the evolution of globalization, the world is becoming a smaller place. International trade is an important aspect of a country’s economy. Sea route is emerging as a major contributor to transportation.
Here are three reasons why maritime transportation is important for world trade.
1-Maintenance cost
The maintenance cost of water transportation is significantly low as compared to its counterparts. Rail and road transport have a huge maintenance cost, and that results in an increased price of the final good. Adopting water transportation ultimately solves the problem for the manufacturer and the final buyer.
Water shipping from china to Australia cost around five times less than that of airfare.
2-Easily transport bulky goods
In a report, The United Nations Conference on Trade and Development said that around 80% by volume and 70% by value transported through sea route. So it's clear that water transportation is the only way to transfer bulky and mass goods from one country to another.
As shipping from china to Australia cost is quite lower, many countries are preferring to send their bulky goods by water medium.
3-Geographical advantage
Countries of different continents like China and Australia are not connected by train line or road. But most countries are connected via sea route. Majority of water bodies in the world are free for navigation, and this works as a major advantage to reduce the transportation cost.
Due to easy access to sea route, shipping from china to Australia cost is similar to the cost of shipping from China to Russia.
Post a Comment: