Economics of international trade

Abstract

In our examination of the economics of shipping, it is important that we view the industry against the background of international trade and thereby place the role of shipping in perspective. One must bear in mind that ships carry some 99 per cent of world trade in volume terms and almost 80 per cent in value terms, the remainder being conveyed primarily by air. Moreover, there is evidence of a trend towards more political involvement in the international exchange of goods and less freedom of commercial trade, while fiscal policies are becoming more prevalent in the attitude of various governments towards world trade. Factors such as these influence the economics of international shipping.