Historical Value of Water-Based Trade - Report Example

Historical Value of Water-Based Trade Historical Value of Water-Based Trade Introduction In history water-based transportation hasbeen the main connection to facilitate trade between countries across the world. Water-based trade is a means of transporting goods and people through the sea and any water body and is also known as maritime transportation (Brooks et al., 2002). The history of maritime transportation dates back to thousands of years ago when the early man wanted to expand his curiosity beyond what was known about the sea. The first boat was built by Stone Age man and they are assumed to be the dugout canoes. The dugout canoe is made of a hallow tree trunk and was used to go fishing and to travel from one place to the other. During 4,000 BC, the Egyptians built the Egyptian reed boat. The Egyptians are believed to have had the knowledge of aerodynamics science which is the science of sail construction. This believed to have been the first boat in history. Maritime transportation started from the Egyptian coast as far back as 3,200 BC. Egypt sent out their ships to trade to areas such a Sumatra which is the longest route recorded in Maritime history (Brooks et al., 2002). This paper will discuss the historical value that water-based trade had in the development of connecting people across the world. It will look into how the Chinese traded with East Africans, Spanish with Americans and Britons also with Americans and Africans. Chinese Water-Based Trade The Chinese adopted the water-based trade by traveling between the South China Sea and the Indian Ocean. Through their travel they created a trade network. The Chinese lead by Zheng tried to take over the maritime transportation during the 15th century (Bernstein, 2009). They loaded a single ship with 28,000 men and sought to travel to seven destinations. In one of their destinations happened to be the East African coast. This was the end of their reign in the maritime transportation. Europe took over from the Chinese and established a trade network that was global in the 16th century. They introduced the log books that every sheep travelling in the sea should have. The log book contained the activities of the ship like the position of the ship and the weather condition at a particular time. The log books served to help in navigation. During this period the ships engaged in trading revolved around the Mediterranean, Northern part of Indian Ocean, Pacific Asia and the north of the Atlantic. This helped them build connections with people from East African coasts, which can be seen even to date by the way the two regions trade. Spanish Water-Based Trade Between the half years of the 1700 and early years of 1800 new trade patterns were introduced different from what the Chinese people used. The Spanish traded with their American colonies, more so Mexico, which acted as a link between the overland and inland route connecting to the transpacific trade (Zumerchik & Danver, 2010). The Spanish water-based trade network was complex. It was formed due to the pressures that came with the economic situation and wind and sea current patterns. The trade winds blew on south and had an eastward wind pattern. The sailors would use this wind to move across the Atlantic. The westerlies wind blew on the South and had a westward wind pattern. Unlike China, the Spanish water-based trade connected with the Argentinean, Chile and Peru trading systems. The Dutch traded with Indonesia, Sri Lanka and Cape Town. Cape Town was colonized by the Dutch who used it as central trading center in its maritime. The Dutch wanted to take part in the Colonial trade pattern in the Northern part of the Atlantic through their colonies of the Caribbean and Guyana (Zumerchik & Danver, 2010). This helped them build partnerships and also enabled their easy settlement in their American colonies. The United Kingdom Water-Based Trade The United Kingdom maritime is thought to have the super power because it covered a wide area and it used its colonies in America and South Asia to link its network. That is why, unlike China and Spain, U.K. has had a much wider effect worldwide in to spreading the European culture. The France network was the least superior of all Maritimes in history. It only consisted of only two colonies, which are the Caribbean and New France. All the water-based trade was taking place in the northern parts of the Indian Ocean, Pacific Asia and the northern parts of the Atlantic. The maritime networks were solely set on the accessibility to the trade goods and services. The United Kingdom maritime expanded trade by allowing more sails over the Atlantic to America (Rodrigue et al., 2013). New goods such as tobacco, gold and other precious stones were introduced in the trade. These goods were then taken to Asia for trade. It helped them build relations with China as they traded together. The Indians traded on spices and had a central port, Batavia, which served as a central port for many countries coming to trade with them. The English also traded with the Indians goods like tea and cotton. Channels of Trade The Suez Canal was opened in 1869 and his created a direct link between Europe and Asia. The Panama Canal was opened 40 decades later which linked the Atlantic and Pacific Ocean. These links are manmade and it impacted trade in that for some countries in Asia it opened business for them as there was a direct link (Zumerchik & Danver, 2010). In places like Africa, trade reduced as the countries that passed through them to Asia no longer did because of the direct links. These Maritimes are still relevant in the 21st century. In the 19th Century, the steam engine was developed and it was no longer necessary to rely on the wind and sea currents. The Maritime advanced greatly with both the canals and introduction of the steam engines which travelled faster than relying on the winds. Some of the travels were reduced by a few days and others by half as the canals and steam engines were time saving (Zumerchik & Danver, 2010). The trade became international and the amounts of goods being transported were in larger sizes. Contemporary Water-Based Trade Today, the water-based trade derives its demand by promoting good trading relations between countries. The relations are influenced by the capacity of a shipment. The water-based trade has grown to be the leading industry that involves many countries in the world based on its operations and ownership. The water-based trade does not have any geographical considerations unlike other means like the road or air transportation (Rodrigue et al., 2013). The gaps that exist between the transitioning from land to water is narrowed down by the creation of maritime routes. This has been advanced by technology created by these nations that started water-based trade. The maritime routes connect the routes through a port. Today, the water-based trade is facing advancements in that advancements are being made to increase the capacity of the containers, the automation of the of the processes involved and development of huge ports that have the capability of supporting the technical requirements of a water-based trade. With these advancements has come maritime traffic. The technical advancement is not evenly administered. The Linear shipping connectivity index (LSCI) measures the linear connectivity. A country with a higher index indicates that it can easily access a water-based trade system that has a higher capacity and frequency. LSCI can also be used to measure trade facilitation in that it seeks to ensure that revenue is maximized. The index is calculated the carrying capacity of the container (Bernstein, 2009). This is calculated by adding the services that are linked to a particular port and relate it to the physical capacity. Containership deployment is another measuring tool of the LSCI. This is the number of ships that communicate with the port of a certain country. A country that has a high number of transshipment communications tends to give an impression that the country is highly globalized. A country with a large number of companies linking up with it and exchange their services determines the index. Lastly, the index is determined by capacity of port to accommodate ships. This water-based trade occurs in the coastal regions. Africa, Australia and Asia do not have an expansive network. For instance, Russia is known to have a very large inland waterway system (Howard, 2012). However, this limited by the seasons and inactive or less used during the winter. The Chinese water-based trade system has a relatively high capacity but is not deep enough for the fluvial ships. The American and Western Europe ports have a larger capacity to hold more ships but are not big. With the water-based trade increasing as there is no other means that is efficient in transporting bulky good, there is a need to expand on the existing ports. The expansion of these waterways would mean maintaining the already existing ones or modifying them so that more routes are created (Howard, 2012). Modification involves a lot of funds to be invested in it and it is advised to be undertaken in cases where it is necessary. So much has been invested in the existing ports because they require expansive space. Economies of Water-Based Trade There are several economic activities that are involved in the water-based trade. Britain is still the leading water-based dependent nation and has exemplary marine discipline. It still trades minerals and other commodities and endeavors t concentrate on the manufacturing. Britain’s success can be attributed to the policies governing their water-based trade and focusing on being dependent. The free trade allowed in different regions of the world has enhanced the water-based trade among member countries with the free trade rule. With this type of beneficial agreements the respective countries enlarge their water-based trade as there are no trade barriers (Howard, 2012). This provides the consumers with a variety of goods and services to choose from. In the long run the benefits include increase in the demand of the goods, improved business operations and improved standards of living. This motivates a further demand for a bigger water-based trade. With the developments already achieved expansion can be accommodated. Ports have gained a large share of the socio-economic development of the water-based trade. The balance of power in the international market has shifted to the East. Ports increase the economic activity of a country when it facilitates for dependence. Dependence is when a country is able to manufacture their own goods, source for their raw materials and provide for their own transportation, services and construction. Through ports the developing countries can be able to have employment opportunities in the trading centers. The facilities that are constructed in the vicinity of the ports will increase the living standards in developing countries. The ports available in the country show a significant increase in the use of containers. This results into the expansion of the main ports. Maersk is a main port and is the largest container operator n the world. If it partners with ports in developing countries it will be able to share its expertise with them and help them reach international standards. South China and Malacca hold thousands of ships with different goods between the east and west. This is because they are situated in sea lanes borders and are surrounded by maritime communication and economic activities. Regional ports are connected through the shipping services that they provide for each other and they intermingle in their economic activities (Zumerchik & Danver, 2010). Goods from America, Africa and Europe all travel through Asia which has ports along its coast. Both the international and regional water-based trade has contributed to the trade between regions. MISC, a Malaysian national carrier, is the world’s leading carrier and is a key contributor to the internal shipments. The shipping industries have grown rapidly over the years and it continues to grow. Some countries have topped the maritime transportation because they were able to expand their water-based trade and increase their trading volumes. Conclusion Water-based trade is a source of revenue for a country when it engages in economic activities when it participates in international trade. Despite the many struggles that developing countries face, they can still be able to invest in water-based trade to improve their living standards and create jobs. Nations like Britain have a strong maritime transport system but are still faced with the challenge of existence when developing their resources. Such nations are required to create competitiveness with the other firms so they can have a chance to grow and increase their value in the industry. They can increase their value by increasing their trade volumes, attract more ships to their port and source for new investments. Water-based trade will continue to be a source development to a nation both socially and economically. References Bernstein, W. J. (2009). A splendid exchange: How trade shaped the world. Ohio: Grove Press. Brooks, M. R., Button, K. J., & Nijkamp, P. (2002). Maritime Transport. New Jersey: Edward Elgar Publications. Howard, M. C. (2012). Transnationalism in ancient and medieval societies: The role of cross-border trade and travel. New York: McFarland. Rodrigue, J., Comtois, C., & Slack, B. (2013). The geography of transport systems. New York: Routledge. Zumerchik, J., & Danver, S. L.. (2010) Seas and waterways of the world: An encyclopedia of history, uses and issues, Volume 1. Washington, DC: ABC-CLIO. Read More