1.1. History of the shipping industry
Since the beginning of time, people have used water to transport cargo from one place to another. About 5,000 years ago, the first major trade routes were formed between modern-day India and Pakistan along the Arabian Sea. During the same time, the Romans were developing fleets that could cross the Mediterranean Sea in about a month. They carried low-value goods such as grain and construction materials. It was much cheaper to transport these goods by sea than by land. Romans soon expanded their trade routes to travel over the Indian Ocean. With time, greater attention was paid to the specialization of ships for trade. Trading ships sought to carry as much tonnage of goods as possible with as small a crew as practicable.
From its modest origins as Egyptian coastal and river sailing ships around 3,200 BC, maritime transportation has always been the dominant support of global trade. By the 10th century, Chinese merchants frequented the South China Sea and the Indian Ocean, establishing regional trade networks. During the 7th – the 13th centuries, the Arab Empire began developing trade routes through Asia, Africa, and Europe, using advanced vessels which greatly reduced the time it took to transport goods.
During the Age of Discovery in the 15th – 19th centuries, advances in navigation and shipbuilding allowed Europeans to voyage across the Atlantic. This opened trade routes to Virginia and Maryland for tobacco, and Mexico and Peru for silver.
With the development of the steam engine in the mid-19th century, trade networks expanded considerably. Also, the opening of the Suez and Panama Canals, during the 19th and 20th centuries, lead to the intensification of maritime trade.
In the 20th century, maritime transport grew exponentially as changes in international trade and seaborne trade became interrelated. In the late 20th century, container shipping developed, leading to the shipping industry we know today.