Containerisation
A system using steel containers with
standardised dimensions. They can
be transported and loaded very
easily, over long distances and
between different modes of
transport.
Ports
The three largest ports in Europe are
Rotterdam, Antwerp and Hamburg.
The three largest ports in North
America are Houston, New Orleans
and New York and the 3 largest ports
in Asia are Shanghai, Singapore and
Guangzhou.
Major Flows of Trade
Europe  North America
South East Asia  North East Asia
Northern USA  Asia
Chokepoints in Europe
 English Channel and Strait of
Dover
 Strait of Gibraltar
 The Baltic Sea
(Denmark/Scandanavia)
 The Mediterranean (Malta)
 The Adriatic Sea
(Italy/Greece)
The Growth of World Trade
 Containers were
internationally adopted in
1967
Between 1965 and 1970:
 Port labour productivity
increased from 1.7 to 30
tonnes per hour
 The average ship size
increased from 8.4 tonnes to
19.7 tonnes
 The number of loading ports
in Europe decreased from 11
to 3.
Container shipping profits have
declined due to the fact that vessels
are larger and often now sail under
capacity: this has lead to company
consolidation through mergence
 Port labour productivity
increased from 1.7 to 30
tonnes per hour
Importance to modern trade
Makes transportation cheaper and easier. A wide variety of things
can be transported on the same ship. The invention by Malcolm
McClean in 1937 saved at least 2 weeks compared to loading and
unloading items onto ships individually. The first container ship – the
Ideal X set sail on April 26th 1957. Anything can be transported and
the stardard sized container fits all modes of transport.
Trade
Worlds 3 largest exporters: China, Japan and Saudi Arabia
Worlds 3 largest importers: China, US and Japan
The Suez Canal – connects Mediterranean Sea to the Red Sea
 Allows trade between the East and West
 It is quicker, more efficient and probably safer to transport
goods via the Mediterranean than around the Horn of Africa
 Asia, North East Africa and Europe all benefit
The Panama Canal – connects the Atlantic and Pacific Oceans
 Roughly 1 million containers will travel through the canal
each week once it has been upgraded
 It allows trade between Europe and Western Australia
without crossing land. Southwestern South America may also
benefit from trade.
Reasons for Growth of World Trade since WW2
 Improved technology
o Container ships allowing faster and more efficient
transport
o Improved communication infrastructure – the
internet
o Manufacturing output has been increased by
mechanisation
 Financial
o Low oil prices – transportation and manufacturing
becomes cheaper
o Deregulation – post WW2 congress lowered taxes
which increased growth
 Change in consumer habits increases demand – consumer
have increased affluence and increased disposable incomes
 The Green Revolution in LEDCs increases yield through the
use of GM crops and fertilisers
Container Shipping Alliances
Largest: 2M (Maersk Line and MSC) = 27.9%
2nd Largest: ( CMA COM, China Coscot, Evergreen and Orient
Overseas Container Line) = 23.7%
Total share of global container market by these alliances: 51.6%
 Global Superpowers
A superpower is an extremely
powerful nation, especially one
capable of influencing international
events and the acts and policies of
less powerful nations.
At the height of the British Empire
the UK was a superpower. Nowadays
the US is a superpower, but India
and China have the potential to
become one in the future.
Regulation of Container Shipping
UNCLOS has two regulations which relate directly to oil tankers:
 Oil tanker construction: the use of double hulled tankers to
prevent or reduce oil spills. In 1992 it became mandatory for
tankers of 5,000 dead weight tonnages requiring double
hulls. Single hull tankers were phased out from 1st
September 2003 after a number of oil spill disasters.
 Tanker flushing: 1954 OILPOL convention prohibited tank
cleaning which used hot seawater jets creating residue
discharge into the ocean within 50 miles of most land and
100 miles of sensitive areas. Crude oil washing became
mandatory for ne tankers of 20,000 tons deadweight in the
1978 protocol after the 1973 MARPOL Convention.

The Suez Crisis of 1956 The Suez Canal

There was a dispute over access and
ownership between Israel, Egypt, the
UK and France. It ended in the same
year when the UN called a truce. In
1962, Egypt finalised payments to
the Universal Suez Canal Company
and took full ownership of the canal.
Piracy
Due to their strategic importance,
the control and stability of
chokepoints such as the Suez and
Panama Canals has meant the rise of
modern piracy in areas such as
Somalia and Indonesia.
How could marine piracy be addressed?
 Completed and opened on the 17th November 1869
 It is 101 miles long
 It is 24 metres deep and 300 metres wide
 It cost $100 million to construct
 It links the Mediterranean Sea to the Gulf of Suez
 It takes around 11-16 hours to pass through
 It supports 8% of the world’s shipping
 50 ships pass through each day.
Reasons for Somalian Piracy
There are a large number of ships passing through the Suez Canal
The countries surrounding this area are mainly LEDCS and will often
resort to stealing as:
 The government are not as strict and stringent
 Piracy provides opportunities for people and money goes back
into local communities
 It is a way of life for some people and a form of survival

1. Live with piracy – some people think it isn’t as bad as stated. In 2008 Somalian pirates too $30-
$40 million in ransom – this is miniscule in international terms.
2. Prevent or deter piracy – use naval patrols and convoys. This has had limited success to date.
3. Arm cargo ships – there are lots of legal and moral concerns here and would also increase
insurance costs.
4. Take the war on piracy to pirate lair on shore and bomb land bases – in reality pirates will just
move and it also poses the risk of harm to innocent civilians and any international hostages.
5. Tackle the financiers of piracy: freeze the bank accounts of anybody who has financial
involvement of piracy. However, it is hard to track the movement of money in countries such
as Somalia and people will continue to transfer money under the radar.
6. Stop paying ransom: this will effectively take away and incentive for piracy, however hostages
may be killed and ships and cargos may be lost and destroyed in return.
7. Back and encourage a Government in Somalia that wants to eliminate piracy. This is probably
the most important method of tackling piracy as it will involve cooperation between
Governments with a shared vision and belief.
 Somalian Piracy
Pirates do not face prosecution in Somalia as there is no legal regime for authorities to hold pirates
accountable and there is no central government to enforce the law.
Local coastal communities support piracy as profits are often reinvested in these areas – therefore they have
a vested interest as they benefit indirectly from piracy.
The UN resolution of 1951 facilitated the creation of the Contact Group on Piracy off the Coast of Somalia.
The UN resolution was passed in 2001, which authorises states with Navy’s to take action against pirates.
The Contact Group on Piracy off the Coast of Somalia was set up in 2009 and organises military and
operational coordination and management of piracy.
The Djibouti Code of Conduct is an agreement that 9 countries have signed since 2009. The aim of it is to
repress piracy and armed robbery of ships. States that sign agree to work together towards ocean security.
The London Conference on the future of Somalia brought in new international measures for combatting and
prosecuting piracy off the coast of Somalia.
Currently too few ships patrol the seas and this does not tackle or address the issue of governance in nations
surrounding the seas. Consequently, many ships now hire armed guards.