Ships are of vital importance to the world’s economy. They carry over 90% of the freight that travels around the globe. Although air travel is a quicker way of crossing the oceans, it is very expensive, and weight is always a problem. Ships may be slower, but they can carry enormous loads. Nowadays many loads are carried in large steel containers, which can be stacked on the ship and then lifted by crane directly onto the back of a truck in the port, doing away with the need to pack and unpack cargo at each change of carrier. Containers protect the goods inside. They can be stored in stacks on the dockside until transferred to a ship, truck or train.
Ocean shipping is the primary conduit of world trade, a key element of international economic development, and a central reason why the world enjoys ready access to a diverse spectrum of low-cost products. Seventy-five percent of internationally traded goods are transported via ocean going vessels. In 2014, world container ship traffic carried more than 1.6 billion metric tons of cargo. Products shipped via container include a broad spectrum of consumer goods ranging from clothing and shoes to electronics and furniture, as well as perishable goods like produce and seafood. Containers also bring materials like plastic, paper and machinery to manufacturing facilities around the world.
In one year, a single large containership could carry over 200,000 containers. While vessels vary in size and carrying capacity, many liner ships can transport up to 8,000 containers of finished goods and products. Some ships are capable of carrying as many as 14,000 TEUs (twenty-foot equivalent units). It would require hundreds of freight aircraft, many miles of rail cars, and fleets of trucks to carry the goods that can fit on one large container ship. In fact, if all the containers from an 11,000 TEU ship were loaded onto a train, it would need to be 44 miles or 77 kilometers long.
Ocean shipping’s economies of scale, the mode’s comparatively low cost and its environmental efficiencies enable long distance trade that would not be feasible with costlier, less efficient means of transport. For example, the cost to transport a 20-foot container of medical equipment between Melbourne, Australia and Long Beach, California via container ship is approximately $2,700. The cost to move the same shipment using airfreight is more than $20,000.
As a major global enterprise, the international shipping industry directly employs hundreds of thousands of people and plays a crucial role in stimulating job creation and increasing gross domestic product in countries throughout the world. Moreover, as the lifeblood of global economic vitality, ocean shipping contributes significantly to international stability and security.