Amazing Benefits of Shipping Business
We have all heard of (and loved watching and idealizing, in the days of yore), none other than our favourites spinach eater, Popeye the Sailor Man! (Yes, let’s all confess that we sang the above Popeye the Sailor Man, phrase.) Anyway, so let’s get back to the titular topic. And what would that be, dear readers? Anything related to sailing? Anything related to Popeye? Anything related to spinach? Anything related to sea? Yes, the holy sea. Moreover, what transportation works best in sea and for sea? Machines that move majestically on the seas. Actually, to be precise, standard shipping. Ah, not the same boring topic, again? Well, this may be informative.
Now, what is standard shipping? Same as shopping? Precisely, not.
Global shipping refers to the physical procedure of transporting freights, products goods and loads by sea, and sometimes by land or air. On the other hand, container shipping refers to the sing transportation of good using homogeneous re-sealable conveyance boxes from one place to another, by sea, land or air. Take a look at the history of the entire shipping business as it grew and grew. The growth and development of container shipping started as early as mid-1950s, when this mode of transport becomes very common all over the world. By early 1970’s people all over the world had adopted container shipping as the most common mode of carriage for both commercial and industrial merchandises, which included trade goods and heavy machineries, by sea. In all the areas of intercontinental shipping, the growth and development of container shipping is always considered the fastest. In terms of corporate size of containerized trade, it rose from 10% to 15% of the international trade in the duration of 2002-2012.
This massive growth of container shipping compared to other means of transportation can be attributed to its numerous benefits.
Some of these benefits include the following:-
The containers employed in the shipment provide a safe carriage of the air freight; as a result of the specific equipment used in handling of cargo shipping the time packing and unpacking is less; and also the charge of conveyance of goods by means of container shipping is relatively cheaper compared to other transport methods.
In figures, by 2008 the overall traffic for container transport was about 132 million teu which raised upto145 million teu in the year 2009. By the 2010, the traffic was about 162million teu and income margins kept on rising annually. Nevertheless, as a result of intercontinental financial crisis, the sector experienced various challenges in 2009 to 2010. Throughout the same duration, oil prices rose to a different highest level causing a surge in operational budget and condensed income margins. In attempt to cut their operational budget, the shipping firms decided to use carriers of more loading volume. This was aimed at increasing fuel efficacy. This strategy bore a positive result which helped the industry to make progress in 2011 and by the end of 2012 industry recorded improved results.
Nevertheless the shipping industry is by now indicating signs of saturation and consequently the charges, demands and revenues are projected to continue in a stable range up to 2016. Surplus of carriers is the key cause of this saturation state. Aimed at improving the market situation, many firms have by now lowered the number of vessels for container transport. Shipping firms have begun exploiting their resources efficiently in order to lessen their operational expenditure and increase their incomes.
Therefore, it is correct to say that the general outlook of the market is progressive in the direction of the container shipping industry.
Now, since Encompass Shipping is a shipping company based in the United States, it was wise to write about something legal facts and articles related to and mandatory for the shipping business overall.
(a) The owner, charterer, managing operator, master, or individual in charge shall make shipping agreement in writing with each seaman before the seaman commences employment.
(b) The agreement shall contain the following:
(1) The nature, and, as far as practicable, the duration of the intended voyage, and the port or country in which the voyage is to end.
(2) The number and description of the crew and the capacity in which each seaman is to be engaged.
(3) The time at which each seaman is to be on board to begin work.
(4) The amount of wages each seaman is to receive.
(5) Regulations about conduct on board, and information on fines, short allowance of provisions, and other punishment for misconduct provided by law.
(6) A scale of the provisions that are to be provided each seaman.
(7) Any stipulation in reference to advances and allotments of wages.
(8) Other matters not contrary to law.
(c) Each shipping agreement must be signed by the master or individual in charge or a representative of the owner, charterer, or managing operator, and by each seaman employed.
(d) The owner, charterer, managing operator, master, or individual in charge shall maintain the shipping agreement and make the shipping agreement available to the seaman.