Shipping Industry in the Twenty-First Century

Abstract

This chapter analyzes the trends of the development of international economy and trade at the beginning of the twenty-first century. Seven major features of international shipping business are discussed in the chapter. The chapter also shows how a global shipping business operator, taking COSCO as an example, should act to meet the new challenges. The three fundamental agreements of telecommunication, IT, and financial services settled under WTO framework, which, distinguished by wide coverage and rapid opening up process, mark the penetration of world trade liberalization from cargo trade to service trade. The concepts of market, trade liberalization, and technological information, as well as cross border management of the multinational companies, cross border M&As, and development of regional organizations have sped up the free flow of commodity, service, asset, technology, human resources, and information in the world. The development of the global shipping industry mainly depends on the development of the international trade, and the development of international trade is mainly based on the development of the international economy and politics. With the development of international economy and trade, more and more transnational companies are requiring shipping companies to provide the global transport services. After the bulk carrier specialization and containerization, the international shipping is entering into the era of modern logistics.