6 Reasons Why Cargo Ships Will Continue to Dominate the World's Economy

Shipping by sea is an old mode of transportation. In ancient times, ships sailed across oceans carrying goods such as spices, precious metals, and luxury items. Today, it is estimated that "some 80 percent of all goods are carried by sea."

There are various kinds of ships that carry different cargo, including crude oils, scrap metal, steel, coal, fuel, electricity and electronic goods, raw material for manufacturing, and commodities such as coffee.

Items we use in our daily life, like salt, sugar, cereal, oil, and soaps, are also transported by cargo ships, most in 20-foot-long shipping boxes called "containers."

Most modern-day global trade takes place via sea routes. But what about the future?

How might shipping change over the next few decades? Will the rise of autonomous vehicles mean that fewer people will work on ships? What impact will artificial intelligence have on the industry? And how will climate change affect shipping?

Despite the many changing factors in the coming years, there are many reasons why sea transport and cargo ships are projected to grow in the future and will continue to lead international trade and play a major role in the global economy.

Below, we highlight six reasons cargo ships why will continue to dominate the economy.

1) Sea Freight Is Economical

cargo around the world. In fact, it is often much more affordable than airfreight.

In 2022, ocean freight comes at the cost of $2-$4/kilogram, while air freight costs $3-$4/kilogram—and up to $7/kilogram if you choose express shipping.

This cost makes sea freight transport ideal for moving large quantities of products over long distances.

The quick turnaround times and high fuel costs of air freight drive up prices. However, while sea freight necessitates longer transit time, that downside is offset by the savings in transportation expenses.

When compared to land transport, as well, ocean transport is cheaper, especially if you ship larger volumes of goods.

2) Sea Freight is Efficient

No matter the volume of your shipment, ocean carriers can usually handle your requirements.

Smaller shipments may be bundled into larger loads, enabling you to share costs among multiple consignments. Meanwhile, larger shipments can fill entire containers, giving you unparalleled flexibility in distributing your products.

You can transport bulkier cargo easily through ocean freight. In addition, shippers can use sea freight to combine multiple shipments into one shipment.

This type of transportation offers flexibility and enables shippers to move large amounts of merchandise quickly and efficiently.

3) Sea Freight Is Safe

The sea is one of the least risky methods of transporting goods worldwide. There are many reasons why it is considered the safest mode of transport.

For starters, no planes are flying over the ocean, so you don't have to worry about crashing into another plane.

Also, ships do not fly over populated areas, so there is less chance of hitting something like a building or power lines.

Ships are also extremely stable because they are built to withstand strong winds and waves. They can even handle rough weather better than airplanes.

4) Sea Freight Is Environmentally Friendly

Ocean freight shipping is much greener than shipping via planes. Moreover, cargo ships are far less polluting than airplanes and have fewer detrimental environmental impacts.

According to the United Nations, cargo ships use fewer resources and emit fewer greenhouse gases—only about 3% of global greenhouse gas emissions.

Cargo ships are one of the most efficient modes of global transportation. Planes, on the other hand, are very inefficient. They require a lot of fuel, which produces a lot of pollution.

Airfreight also leaves a larger carbon footprint compared to ocean freight—nearly twenty times more carbon dioxide than that created by sea freight.

5) Container Ships Can Carry Heavy Cargo

Shipping large items on a boat can be easier than shipping them through traditional methods.

A cargo vessel can carry up to 10 times more weight than a truck. So consider shipping it on a cargo vessel if you want to move something big.

There are many different types of vessels available. You can choose from container ships, bulk carriers, tankers, car carriers, passenger liners, and even cruise ships. Each type of vessel offers advantages and disadvantages depending on what you're trying to do.

6) Sea Freight Is Simple

Shipping by container makes it easy for shippers to track multiple items. In containerized shipping, you can rest assured that nothing gets left behind.

You don't have to worry about losing anything because everything is kept together in the container.

Because containers are standardized, you can buy one big box and fill it up with whatever you want. Then you just load it onto the cargo ship. When you're done, you unload it at your destination and save yourself a lot of money.

When Container Shipping Is Disrupted, There Are Impacts Worldwide

Shipping containers are used globally to move goods from one location to another. But what happens when those shipments are delayed or canceled due to natural disasters, political unrest, or even just a simple power outage?

The Covid-19 pandemic caused numerous disruptions to international shipping, including sea transport.

Incidents like the obstruction of the Suez Canal in March 2021 also have a detrimental impact on shipping, holding up deliveries for up to a week at a time.

These anecdotes point to the same conclusion: container shipping holds an irreplaceable role in the global economy, and it's vital that shipping companies have plans in place to overcome unforeseen circumstances that could otherwise disrupt international transport.

Choosing a Shipping Company

From its economic cost to its environmentally friendly nature, cargo ships in ocean freight will continue to have a positive impact on the global economy.

In addition, disruptions in cargo shipping may impact a country's business landscape.

Now that we've seen the impact that cargo shipping has and will continue to have on the global economy, you might be asking yourself how your business can become a part of this international trade movement.

Our experts at A1 Auto Transport are prepared to answer your questions.

In addition, we offer advice about utilizing sea shipping methods to transport your personal vehicle, RV or motorhome, motorcycle, household goods, and more.

So visit A-1 Auto Transport for a free quote today.