Marine Transportation - Assignment Example

Reasonably, the growing demand for different commodities in different economies around the globe forces for the massive transportation of containerized goods, which on the point of destination will be offloaded and transported inland to the actual location through road and rail transport. Up to the present, over a million vessels have transited through the Panama Canal with a similar number passing through the Suez Canal (Talley 90). Arguably, the two canals have served to benefit adjacent economies to achieve abundant economic growth rates.

For instance, the Suez Canal affected Egypt’s industrialization to an extent that the country reigned as a growing economy in the Northern part of the African continent. The rapid growth in maritime transportation is influential to the continued expansion of the waterways (92). The increment in the vessels’ size has served to the advantage of the economies adjacent to the canals citing on the cargo handling processes in the ports whenever. 2. Maritime strategic passages (Suez Canal, Panama Canal, etc.) provide an important service to global shipping and international trade.

Discuss the likely economic impact that a disruption of traffic (through an act of piracy) in the Gulf of Aden would have on the Suez Canal, global shipping and international trade. Maritime passages’ purpose of creation emanated from the need for ease in sea transport through the creation of waterways that would shorten the distances of each voyage. In the absence of these canals, ships would have to embark on long distances thus; the cost of sea transport shall increase in the long run. It is knowledgeable that the cost of shipping would escalate if an inland waterway would close or be disrupted.

These disruptions, for example, those present in the Suez Canal and the threat of piracy in the Gulf of Aden since 1957 and in the early 2006 force for changes in trade routes whereby ships engage on lengthy voyages from departure to the