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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