By Foluke Akinmoladun
Shipping is among the oldest commercial activities in the world and remains a cornerstone of global trade. The shipping industry operates primarily as a service sector, meeting the transportation needs of a wide range of customers. These customers include small private firms that import or export limited quantities of goods, as well as large multinational corporations that move substantial volumes of cargo on a regular basis.
The rapid expansion of seaborne trade has played a major role in establishing shipping as the most cost-effective means of transporting goods internationally. Studies indicate that approximately 90% of global trade is conducted by sea, underscoring the industry’s significant contribution to national and global economies. This discussion outlines the main types of ships, key participants in the shipping industry, the services ships provide, and the supporting industries connected to maritime transport.
Types of Ships
In the period following World War II, only a limited number of ship types existed, including general cargo vessels, tankers, ferries, and fishing boats. Today, the shipping market features nearly fifty different vessel categories, reflecting increased specialization and technological advancement.
Tankers form a major class of ships used for the bulk transportation of liquid cargoes. Depending on their specific purpose, tanker vessels are further classified into crude oil carriers, liquefied natural gas (LNG) carriers, liquefied petroleum gas (LPG) carriers, chemical tankers, clean petroleum product carriers, and vessels designed for edible oils and alcohols.
The range of ships used for dry cargo transportation is even broader and includes specialized vessels such as cement carriers, cable-laying ships, and research vessels. However, the most common vessel in deep-sea dry bulk trade is the handy-size bulk carrier. These ships typically have a carrying capacity of about 30,000 tonnes and are commonly referred to as Handymax vessels. They are closely followed by Panamax ships, which can transport approximately 65,000 tonnes of cargo.
A vessel’s deadweight capacity is determined by its design, dimensions, and the nature of the cargo carried. International maritime law requires all commercial ships to display a Plimsoll mark on the hull, indicating the maximum safe loading depth. The placement and use of this mark are regulated by the International Load Line Convention.
Key Participants in the Shipping Industry
The success of the shipping business depends on the interaction of several key stakeholders.
Shipowners
Shipowners are central to the industry and may be individuals or corporate entities. They determine the type of vessel operated and the nature of the services provided.
Insurers
Insurance is essential in shipping, covering both vessels and their operational risks. Without adequate insurance, shipping activities cannot function effectively.
The Crew
A ship’s crew consists of the master and supporting officers and ratings. Led by the master, the crew collectively bears responsibility for the safe and efficient execution of voyages.
Authorities
National maritime authorities establish regulatory requirements for ships registered under their flags, known as the flag state regime. In addition, port states inspect visiting vessels to ensure compliance with international and flag-state regulations through Port State Control.
Charterers
Charterers generate business for shipowners by hiring vessels under agreed terms. These arrangements are formalized through written contracts known as charter party agreements.
Other Supporting Parties
A wide range of service providers support shipping operations, including suppliers, bunker traders, ship chandlers, freight forwarders, stevedores, clearing agents, and other logistics and service companies.
Shareholders and Society
Although not directly involved in daily shipping operations, shareholders, employees, investors, and society at large have a vested interest in the industry’s success. Growing expectations regarding corporate social responsibility increasingly influence both regulatory frameworks and business practices within the shipping sector.
Services Provided by Shipping
Cargo transportation is carried out through either tramp or liner services. Tramp shipping operates on demand, transporting cargo from its point of origin to a destination specified by the customer. In contrast, liner services operate on fixed schedules between designated ports, serving established international sea routes.
Beyond cargo transport, many ships are also designed and operated for passenger transportation.
