1. INTERNATIONAL & SEABORNE TRADE
Marina Zanne

2. Introduction
International trade - exchange of capital, goods, and services across borders
The exploitation of interregional advanatges

3. Development of international trade
Restrictions to trade  Bilateral agreements
GATT – General agreement on trade and tariffs (in the late 1940s); mechanism designed to provide a framework of rules and a forum to negotiate trade barrier reductions among nations; trade round were organized under GATT; GATT was not a treaty  the necessity of formal international organization 
WTO was established during Uruguay Round ( ); reduction in trading costs by 40%  increased economic liberalisation  free trade

4. Why trading? A – place of production B – place of consumption
C – cost price at the place of production
D – selling price at the place of production
E – last acceptable price at the place of consumption (this would be the selling price if the good was produce at place B)
H – price at place B when transport is not efficient
J – price at place B when transport is efficient
Costs
Distance

5. Top trading nations & top trading commodities
Wikipedia (October 2010)

6. Seaborne trade
Shipping routes reflect world trade flows  cca 90% of international trade is done by sea  competitive freight costs (growing efficiency of maritime transport)  Globalization  in 2012 more than 9 billion tons of cargo were transported over the sea

7. Seaborne trade
More than commercial sea ports & around merchant ships registered in more than 150 countries carry out more than 9 billion tons of cargo per year

8. The changing structure of trade
(October 2010)

9. Market cycles
Stopford M. (2009): Maritime economics, p. 97

10. Conclusions
Shipping (maritime) industry made globalization possible and probably benefits from globalization more than almost any other sector. Shipping industry carries out majority of international trade and it literally makes possible the life as we know today, and which we take for granted. However, this interdependence of international trade and seaborne trade makes shipping industry more vulnerable to economic crisis.

11. Conclusions
The demand for maritime transportation is a derived one; it derives from the needs of economy and society. That’s why the shipping industry records significant oscilations.

12. Sources& further reading
Stopford M.: Maritime economics, London, Routledge (2009 – 3rd ed. or 1997 – 2nd ed.)
The role of changing transport costs and technology in industrial relocation, OECD Report, 2005
Počuča M., Zanne M.: Globalization, international trade and maritime transport, ICTS 2006
Počuča M., Zanne M.: The impact of global economic crisis on the dry bulk shipping industry, Pomorstvo, god. 23, br. 2 (2009)

13. Sources& further reading
Shipping and world trade,
UNCTAD Review of Maritime transport,