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ID number:952000
Published: 04.01.2017.
Language: English
Level: College/University
Literature: 9 units
References: Not used

The world is almost all integrated and connected through markets, trade, information, people, etc. Globalization has had a huge effect on countries throughout the world and their relations regarding commodities, industry, trade, borders and of course on how people live and therefore, how people buy. As shipping has always been a part of the world’s evolution promoting such connections, it is still acting in the front and back areas of everyday trade, promoting goods and so on to come and go. However, the trade intensity is variable, just as much as are commodities availability, people’s financial access to such foreign markets and as crops are seasonal. Economy literature defines it as being the offer and demand law, of which shipping is always dependent - how much offer there will be on one place and how much demand, so it can connect both. Since there are some variables the industry cannot predict, such as crops loss or surplus, it is necessary for the maritime business to have cash flow health in order to have liquidity when there is a down in freights’ necessity.
Therefore, the shipping industry requires all the shipping companies to go beyond maritime activities and use whichever tools are available in order to overcome obstacles and better than that, remain profitable.

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