The recent commissioning of the world’s largest container ship the Maersk's Majestic underscores the
competitive nature of international shipping.
The vessel is a
quarter of a mile long and has the capacity to transport 18,000 20-foot
containers.
Manufacturers of electronics and mobile phones are shipping cargo by sea
because competition was eroding their profit margins focussing their attention
on cutting delivery costs.
Each 20 foot container can hold 13,000 smart phones with a
transportation cost from China to Europe of 7 pence per unit and a transit time
of approximately 25 days.
Currently there are
over 6000 container vessels operating with a significant number engaged in the
East to West trade routes.
China’s economic
success remains export driven as illustrated by the cost of shipping a
container. Inward from China to Europe costs around US$1500 with the reverse
journey only commanding a rate of around US$700.
Traffic will
continue to moving onto the water because moving goods by air is very
energy-intensive and the high cost of jet fuel makes air freight too expensive.
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