Commercial Shipping

Commercial shipping refers to use of ocean transport system for conducting trade and business. Ships are vehicles used in ocean transportation. These are broadly of two types – liner and tramp.

Commercial shipping requires certain standards and procedures to be followed, which include registration and classification of ships.

Registration is mandatory and helps in getting insurance and patronization for trade for ship. Classification of ships enables to gain a standard certification of built and operations.

SALIENT FEATURES OF COMMERCIAL SHIPPING

1 Commercial shipping depends on port facilities for cost and functional effectiveness.

2 Commercial shipping is exposed to cyclical changes in business (depression-buoyancy).

3 It is an international activity and hence influenced by global economic factors.

4 It is capital intensive that requires large financial investments and backups. Optimal utilization of capacity is must in commercial shipping in view of heavy investments made.

5 International trade increases competition, making business ventures more risky.

6 An adequate captive cargo base is must for stable liner shipping.

7 Diversification of trade makes it necessary to have promotional shipping service under the state.

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