OVERVIEW OF

SEA TRANSPORTATION

In our last Lecture, I asked you to find out:

What is meant by:
UKC?
Draft or Draught?

I hope from now on, you already

understand what the UKC and
draft/draught are all about.

Lets move on.

Earth is Shrinking

A sketch by Geographical Economist

Geographically
Discovered
Industrial
Revolution
Air
Transportation
International
Telephone

1500-1840
1850-1930

The Internet

1950s

1960s

1990s
6

In this meeting, we will see:

1990: A decade of change

Overview of modern transportation
Overview of transportation trends
History of sea transport
Function of shipping
Demand for transportation
Challenges and opportunities

1990s : A DECADE OF CHANGE

Globalization of business

Deregulation of business
Organizational changes in
businesses
Rapidly changing
technology

TRANSPORTATION OVERVIEW
DEFINITION

The movement of people and goods from place

to place by using a vehicle.
Bring the integration of regions and nations into
a single world.

MODES OF TRANSPORTATION
Land, water (sea, river, lake, canal etc.) and air
Railroad and pipeline

Land Transport

Water Transport

Air Transport

Railroad

Pipeline

NATURE OF TRANSPORT DEMAND

The movement of service
Includes speed, either door-to-door or terminal-toterminal, reliability, security and service frequency
Equipment used
Passengers comfort and safety
Freight / third parties supporting infrastructure i.e.
Port, Road, CHEs (cargo and container), etc.
Cost of service
Freight cost, pick-up & delivery costs, packaging
requirements, damage charges, special service
charge such as refrigeration or heat

TRANSPORTATION TRENDS
Specific customer needs
User cost for international transportation
declining
Shift from heavy industrial and productionoriented to fast & finished goods transportation

Greater marketing orientation by carriers

The boom of containerization

SEA TRANSPORTATION HISTORY

Among the oldest industry in the world.
Extensive sea trade during 15th and 16th centuries.

Vessels carrying gold and silver from South Africa.

Tea and spices from the orient.

Have heard about the SILK ROAD?

EARLY SHIPS
1. Ship powered by wind

2. Ship powered by steam turbine

MODERN SHIP
85 % of world fleet is propelled by diesel
engines
Efficient (lower fuel consumption & quantity
of the cargo and container) , lower cost, less
pollution, seldom accidents.

Utilize the usage of the technology

Black box main evidence

Future moving towards nuclear & also

Hybrid technology propulsion.

Derricks (Lo/Lo)

Tanker (Oil)

Gas / Liquefied Natural Gas

(LNG) Carrier

Gas / Oil Carrier

Passenger Vessel (Cruise)

Passenger Vessel (Cruise)

JOURNEY TIME
Sail

Steam

Diesel

Diesel

(via Cape)

(via Cape)

(via Cape)

(via Suez)

164 days

43 days

28 days

15 days

London

Singapore

**

Opening of Suez Canal cuts 3600 nautical miles off the

London Singapore route.

**

Connecting the Mediterranean Sea with Gulf of Suez and then with
the Red Sea. More than 100 miles (160 km) long

FUNCTION OF SHIPPING
Key mode for international trade movement
Conveyance of goods from where utility is
low to a place where it is higher
Goods involve : Raw materials, fuels, food
equipments, vehicles, components/parts,
consumer products etc.
Reliable, high frequency, low cost, acceptable
transit time, quality service, packaging, insurance
coverage.

The development of the national economic

(90%)

CARGO TRADED BY SEA

Energy Cargo: Crude oil, oil product, liquefied gas
(LPG), coal.
Agricultural: Cereals (wheat, barley, maze), sugar,
refrigerated food, oil & fats, fertilizers.
Metal Industry: Raw materials & product of steels,
iron ore, scrap.

Forest product: Timber, wood pulp, plywood, paper,

logs.
Manufacturing: Components, textiles, machinery,
finish goods, vehicles.

DEMAND FOR SEA TRANSPORT

1. Mass Production
Mass production is the creation of many products in a
short period of time using time-saving techniques such
as assembly lines and specialization.
It allows a manufacturer to produce more per workerhour, and to lower the labor cost of the end product.
This in turn allows the product to be sold for a lower
cost.
Specialization of labor and production resulting
oversupply at one location and undersupply of
demand at another place. Fill the gap in mass
production.

2. International Dependencies

- Countries depend on each other to fulfill

the needs.
Ex: US depends on Arab nations for oil, and
they rely on US for manufactured goods
(clothing, computers, aircrafts).
Ex: Malaysia rely on European countries for
manufacturing and EU rely on palm oil.

DEMAND FOR SEA TRANSPORT

3. The Mobility Of People

The movement of people from one location to

another location.

More mobile a society, more efficient

transportation system needed to its citizens.
- Ex: Ferry services at Penang, Malaysia.

Ferries and cruises

Sea transportation plays a key role by serving the

equalization of demand and supply on a global
basis.

SHIPPING INDUSTRY CHALLENGES IN THE 21ST

CENTURY

The growing development of a global logistic

environment.
The continue of liberalization of trade through
global agreement.
The liberalization of port tariff
The changing political scene
The growth of India, China, and Brazilian
economies as emerging countries.
The changing of trade flow

SHIPPING INDUSTRY CHALLENGES IN THE 21ST

CENTURY
The growing importance of energy as the vehicle
for industrial/consumers expansion
The need to improve ship productivity.
The size of the vessel
The capacity area of the port
The pirates
The technology uses
Another key factor for ship-owner and port
operator to adopt strategies which are innovative
and flexible in responding to the changing,
market environment and the challenges it offers
(competition among themselves).

SHIPPING INDUSTRY CHALLENGES IN THE 21ST

CENTURY

Current economic downturn

About Exclusive Economic Zone

(EEZ)

Exclusive Economic Zone (EEZ) is a seazone

prescribed by the United Nations Convention on
the Law of the Sea as an area beyond and adjacent
to the territorial sea, over which a state has special
rights over the exploration and use of marine
resources, including energy production from
water and wind. It stretches from the baseline out
to 200 nautical miles (about 370 km) from its
coast. In colloquial usage, the term may include
the territorial sea and even the continental shelf
beyond the 200-mile limit.

Look at the map. Can every vessel (local

and foreign) navigate to any location in
that area?

The idea of EEZ is about a country

sovereignty and security. The above is
Malaysia EEZ zoning map.

The EEZ zoning system.

The EEZ zoning system.

The EEZ zoning system.

The sea zoning system is also applicable to

fishing zones with modification based on
government policy. The above is Malaysia
context.

MALAYSIA FISHING ZONES

Zone A
Traditional vessels
Load: < 40 GRT
Zone B
Traditional & Commercial
vessels
Load: <40 GRT
Zone C
Commercial vessels
Load: 40 69.9 GRT
Zone C2
Deep Sea Commercial
vessels. Load: > 70 GRT

Zone C3 (International)
Deep Sea Commercial
vessels. Load: > 70 GRT

THE END!!!