By

Dr. Oladokun Sulaiman Olanrewaju

Introduction to Shipping and
Marine Engineering
MERCHANT SHIPS FUNCTION
Early stage, steam reciprocating engines was
recognized as an important transport vessel at
the end of the 19
th
century
Merchant Ships Classified :-
- Passenger Ships
- Cargo & passenger Ships
- Cargo Ships

Cont -
However with development of air planes,
all have been taken over in their place. At
present, passenger ships are mainly use
for luxurious sight seeing cruise ships
The cargo ship changed into so called
specific cargo carrying ships as a result
different variety of ships such as oil
tankers, timber carrier, cement carrier, etc.
THE ROLE OF
SHIPPING
IN
INTERNATIONAL
TRADE
Transport of good by sea is the cheapest
form of transport and till some time ago it
was also the cheapest form of transport
for passengers.

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


The only real competition to shipping is road
transport but this also is limited to small
quantities and over small distances or in land
locked countries
Merchant shipping thus plays a very important
role in nation building. Without merchant ships,
there would be no trade and without trade a
nation cannot grow.
Merchant shipping plays a very important
role not only in international trade but also
domestic trade. This is specially true for
countries which are build up around the
archipelago such as Indonesia, Philippines
or Greece

FACTOR INFLUENCING
WORLD TRADE
World trade and its development is depend upon
a complex pattern of conditions that exist in a
country and relations between the various
countries of the world.
These conditions and relationships will vary in
their influence on the world trade through time,
location and situation and may act in conjunction
with or at times in opposite direction to each
other
VARIOUS FACTOR
classifications
General
Economic Resources
Market Conditions
Political Framework
Technological Development
Financial Situation & Payment Conditions
General
The present individual division of countries

The behavior of countries and individuals

The size and composition of the
population

Economic Resources
The natural resources and their spread
among countries
The law of comparative advantage
The national income and the stages of
economic development
Geographic and climatic conditions
The availability of labour
The growth in basic productive industries
Market Conditions
The present international trade system
The systems of tariffs and customary
practice
The development of individual world prices
The changing of habits and sales
promotion
The share of each countrys export as
related to world exports by groups of
commodity
The diversification of exports by country

Political Framework
The political division of the world
The stability of the national political system
The governmental influence
The system of international co-operation,
discrimination and long range trade
agreements

Technological Development
The transport apparatus and the transport
links
The general technological system
The possibilities for substituting raw
materials
The spread of multinational companies
and their international behavior

Financial Situation and Payment
Conditions
The availability and conditions of
international finance
The general debt burden, debt service and
credit ratings
The external assistance and general
development aid to developing countries