1. The role of seas and oceans in globalisation and resource integration
The global ocean forms a significant component of Earth's surface, covering approximately 71% with its surface, around 360 million square kilometres.
The seas and oceans are repositories of numerous resources exploited by societies while also facilitating exchanges central to globalised economies. Here, maritimisation refers to the process by which economies become increasingly dependent on maritime transport and resources. It encompasses the growth of global trade via maritime routes, expansion of port infrastructure, and the influence of maritime industries on coastal economies. This chapter explores how maritimisation drives globalisation, facilitates regional economic integration, and impacts coastal and port city development.
#A. Maritime routes and global trade
#a) Importance of maritime routes and choke points
Maritime routes are the backbone of global trade, with around 90% of the world’s goods transported by sea. Certain narrow passages, known as choke points, are critical to this trade, as they handle high volumes of maritime traffic. These include strategic locations like the Suez Canal, which links the Mediterranean Sea with the Red Sea, and the Strait of Hormuz, a key route for global oil shipments.
Disruptions in these choke points can have far-reaching effects on the global economy. For example, the 2021 blockage of the Suez Canal by the Ever Given ship halted billions of dollars of goods and underscored the economic vulnerability associated with such points. Ensuring the security and efficiency of these routes is therefore essential for maintaining global trade stability.
| Choke Point | Location | Traffic Volume (Daily/Annually) | Challenges |
|---|---|---|---|
| Strait of Hormuz | Between Oman and Iran | 18-20 million barrels of oil daily | High risk of geopolitical tensions, threat of piracy, risk of closure during conflicts |
| Suez Canal | Egypt (Connects Mediterranean Sea to Red Sea) | 50 ships daily, ~1 million barrels of oil | Vulnerable to congestion (e.g., Ever Given incident), high toll costs, narrow width |
| Bab-el-Mandeb | Between Yemen, Djibouti, and Eritrea | 6.2 million barrels of oil daily | Piracy threats from Somalia, regional geopolitical risks |
| Strait of Malacca | Between Malaysia, Singapore, and Indonesia | 100,000 ships annually, ~16 million barrels of oil daily | High piracy risk, dense traffic, narrow width causes congestion risks |
| Panama Canal | Panama (Connects Atlantic and Pacific Oceans) | 35-40 ships daily, ~200 million tonnes annually | Seasonal droughts affecting water levels, congestion during peak periods, high tolls |
| Bosporus Strait | Turkey (Connects Black Sea to Sea of Marmara) | ~48,000 vessels annually | High accident risk due to narrow passages, seasonal currents, restrictions on tanker traffic |
| Dardanelles Strait | Turkey (Connects Sea of Marmara to Aegean Sea) | Major route for Russian and Caspian oil | High accident risks, narrow passages, heavy regional traffic, restrictions on large tankers |
| Danish Straits | Denmark (Connects Baltic Sea to North Sea) | ~3 million barrels of oil daily | Seasonal ice affects navigation, vital for Baltic countries' access to global trade |
| Cape of Good Hope | South Africa (Alternative to Suez Canal) | Alternative route to Suez Canal | High seas, increased transit time and fuel costs |
The Isthmus of Kra in Thailand and Nicaragua have been the focus of ambitious canal projects aimed at creating alternative routes to established maritime choke points. The proposed Kra Canal, which would cut through southern Thailand, seeks to bypass the congested Strait of Malacca, offering a shorter route for ships traveling between the Indian and Pacific Oceans. This project, however, faces challenges due to environmental concerns, significant costs, and regional political sensitivities.
In Central America, the Nicaragua Canal project aims to provide an alternative to the Panama Canal, promising increased capacity for larger vessels. Although it was supported by Chinese investment, the project has stalled due to funding issues, environmental objections, and concerns over its impact on indigenous communities.
Other proposed projects, such as expansions to the Suez and Panama Canals and upgrades to Arctic shipping lanes, reflect a global effort to enhance maritime efficiency and accommodate the growing volume of international trade. Each of these projects faces unique environmental, economic, and geopolitical challenges that shape their feasibility and future impact on global shipping routes.
#b) Key maritime trade routes and economic impact
Key maritime trade routes facilitate the flow of goods and resources between major global economies. These routes include:
Asia-Europe route (via the Suez Canal): Connecting Asian manufacturing hubs (e.g., China, South Korea, Japan) with European markets, this route accounts for around 40% of global container trade. Ports like Shanghai, Singapore, and Rotterdam play crucial roles in supporting this route.
Trans-Pacific route (Asia to North America): Moving significant volumes of consumer goods, electronics, and machinery, this route links Asia with North America, supporting key economies like the United States and China. Ports such as Los Angeles and Long Beach are critical entry points in this trade flow.
Trans-Atlantic route (North America to Europe): Important for machinery, vehicles, and agricultural products, this route accounts for around 10% of containerised trade. It connects two highly developed regions, facilitating economic ties between North America and Europe.
Intra-Asian routes: These routes connect Asian economies, such as China, Japan, South Korea, and ASEAN (Association of South East Asian Nations) countries, and make up over 50% of global trade volume by tonnage. This regional network supports integrated supply chains and the distribution of raw materials and finished products within Asia.
Indian Ocean route (Middle East to Asia and Europe): Essential for energy flows, this route handles around 40% of the world’s oil shipments, linking energy-producing nations in the Middle East with Asia and Europe. The Strait of Hormuz is a particularly critical choke point for this route.
Arctic route (emerging route): As Arctic ice recedes, a new route connecting Asia to Europe via the Northern Sea Route has become viable, reducing travel times by up to 40%. This route is still developing but is expected to play an increasing role in global trade.
Each of these routes plays a specific role in global trade, influencing regional economies and the flow of key goods and resources. Their significance highlights the interconnected nature of global supply chains and the importance of maintaining secure and efficient maritime networks.
#c) Data insights on maritime trade
Analysing data on regional trade flows, total maritime trade volume, and types of goods transported reveals important insights into the scale, scope, and dependencies in global maritime trade:
Regional activity: Trade flows between regions reflect the economic relationships and interdependencies between major economies. For example, the Asia-Europe route plays a crucial role in delivering manufactured goods to European markets, while the Trans-Pacific route supports North America’s demand for consumer electronics and machinery from Asia. Tracking these flows helps identify shifts in global demand and detect emerging markets or regions affected by trade policies and disruptions.
Total maritime trade volume: Measured in tonnes or container units (TEUs), the total volume of goods transported by sea illustrates the scope of global trade. Fluctuations in this figure can indicate broader economic trends, such as periods of growth, recession, or recovery. Increased trade volume signals economic expansion and growth in demand, while a decline may point to disruptions such as economic downturns, pandemics, or geopolitical tensions. These data also inform infrastructure needs, port capacity requirements, and potential environmental impacts.
Types of goods traded: The types of goods carried by sea reflect regional specialisations and economic needs:
- Manufactured goods: High demand in developed markets for manufactured products flows primarily from Asia to Europe and North America, reinforcing Asia’s role as a global production hub.
- Crude oil and LNG: Energy resources are transported from regions rich in oil and gas, such as the Middle East and Russia, to energy-dependent economies in Asia, Europe, and North America. This reliance highlights the strategic importance of energy-focused routes and choke points, like the Strait of Hormuz.
- Raw materials: Commodities like iron ore, coal, and agricultural products are essential for industrial supply chains. These goods typically flow from resource-abundant countries, such as Brazil and Australia, to industrialised economies in need of these raw materials.
Together, these data points highlight the value of maritime trade in the global economy, revealing dependencies and identifying regions particularly vulnerable to shifts in global demand, economic policies, or disruptions. This framework provides essential insights for managing maritime networks and understanding the role of maritime transport in globalisation.
#d) Types and dynamics of flows in maritime globalisation
Maritime globalisation involves a variety of flows, each serving distinct functions in the global economy. These flows can be categorised as follows:
Commodity and raw materials flows: Bulk shipping of raw materials, such as iron ore, coal, and agricultural products, travels from resource-rich regions (e.g., Australia, Brazil) to industrial economies that require these inputs for manufacturing and energy production.
Energy flows: Large volumes of oil, natural gas, and liquefied natural gas (LNG) are transported through key routes, including the Strait of Hormuz and the Malacca Strait, which link energy-producing countries with major energy consumers in Asia, Europe, and North America. These flows underscore the critical importance of secure and stable maritime routes for global energy markets.
Manufactured goods flows: Containerised shipping enables the movement of manufactured products from production hubs in Asia (notably China) to major consumer markets in Europe, North America, and other regions. This flow is essential to the global supply chain, supporting economies dependent on consumer goods and industrial components.
Service, information and financial flows: Submarine cables, which carry over 95% of the world’s international data, are essential for global communication, finance, and data services. These cables connect major financial and data hubs worldwide, enabling the rapid transfer of information crucial for the functioning of the global economy.
- Role in finance: Submarine cables are the backbone of the global financial system, facilitating nearly instantaneous communication and transactions between the world’s financial centres, such as New York, London, Singapore, and Tokyo. The cables support high-frequency trading, cross-border bank transfers, and currency exchange, which rely on low-latency data transfer to operate effectively. Financial markets, stock exchanges, and international banks depend on these cables for real-time data flow, ensuring that information reaches markets and institutions almost instantaneously. Even minor disruptions can lead to significant delays, market volatility, and potential financial losses, underscoring the cables' importance for economic stability and investor confidence.
- Impact on the digital economy: Submarine cables not only support traditional finance but also enable the growth of the broader digital economy, including e-commerce, cloud computing, and streaming services. Major technology companies, such as Google, Facebook, and Microsoft, increasingly invest in submarine cables to ensure secure, reliable, and high-capacity data transmission for their global operations. This investment reflects the expanding need for robust digital infrastructure to support internet-based services, cloud storage, and the continuous flow of information that underpins the modern economy.
- Geopolitical significance: The strategic importance of submarine cables has led to concerns over security and control, as these cables cross international borders and oceans. Nations increasingly see these cables as critical infrastructure, and securing them against threats, such as sabotage or espionage, is a priority.
Tourism and leisure flows: Coastal and maritime areas are major attractions, especially in the Caribbean, Mediterranean, and Southeast Asia. This flow includes cruise ships, recreational boating, and marina facilities that contribute significantly to local economies but also pose environmental risks.
The interdependence of these flows illustrates the complexities of the maritime network and the heterogenous integration of the states.
#B. Port infrastructure and technological advancements
#a) Ranking of major global seaports
The world’s busiest container ports underscore the strategic importance of maritime hubs in global trade. Here are the top 15 busiest container ports by annual container throughput for 2023, measured in twenty-foot equivalent units (TEUs):
| Rank | Port Name | Country | 2023 Throughput (Million TEUs) | Description |
|---|---|---|---|---|
| 1 | Shanghai | China | 49 | Central to China’s manufacturing and export industries in the Yangtze River Delta. |
| 2 | Singapore | Singapore | 37 | A leading transshipment hub known for automation and efficiency in Southeast Asia. |
| 3 | Ningbo-Zhoushan | China | 33 | Key gateway for eastern China’s manufacturing regions. |
| 4 | Shenzhen | China | 30 | Serves southern China’s manufacturing hub in the Pearl River Delta. |
| 5 | Guangzhou | China | 25 | Supports significant trade flows from southern China. |
| 6 | Busan | South Korea | 22 | A key transit hub for the Asia-Pacific region. |
| 7 | Hong Kong | China | 18 | Essential for trade in the Pearl River Delta region. |
| 8 | Qingdao | China | 17 | Significant hub for northern China’s trade. |
| 9 | Tianjin | China | 16 | Important port in the Beijing-Tianjin-Hebei region. |
| 10 | Jebel Ali | United Arab Emirates | 15 | The Middle East’s largest port, a regional logistics hub. |
| 11 | Rotterdam | Netherlands | 14.5 | Europe’s busiest port and major gateway for continental trade. |
| 12 | Port Klang | Malaysia | 13 | Malaysia’s principal port, serving as a Southeast Asia hub. |
| 13 | Antwerp | Belgium | 12 | Europe’s second-busiest port, known for logistics facilities. |
| 14 | Xiamen | China | 11 | Links China’s Fujian province to global markets. |
| 15 | Los Angeles | United States | 9.5 | The busiest port in the Americas, handling Trans-Pacific trade. |
These ports, particularly in Asia, reflect the impact of maritimisation and the strategic positioning of ports in global economic zones.
#b) Case studies of two major ports: Shanghai and Shenzhen
Two of the busiest ports in the world, Shanghai and Shenzhen, exemplify the role of major ports in driving maritimisation and economic growth, particularly in China’s export-oriented economy. These ports highlight the importance of strategic location, infrastructure investment, and integration with global supply chains.
Shanghai is located in the Yangtze River Delta. Shanghai Port serves as China’s largest and busiest container port, handling over 49 million TEUs (twenty-foot equivalent units) annually. The port’s extensive infrastructure and automation make it a critical hub for exporting manufactured goods from China’s vast industrial base. Shanghai’s strategic location also connects it to a well-developed hinterland, with major cities like Suzhou, Hangzhou, Nanjing, Wuhan, Chengdu. The port’s connectivity facilitates efficient movement of goods between inland production centres and international markets, reinforcing China’s role as a global manufacturing powerhouse. By promoting economic liberalisation, easing investment restrictions, and implementing streamlined customs procedures, the Pudong SEZ (Special Economic Zone) has attracted significant foreign investment and facilitated efficient trade flows. Financial reforms within the zone support Shanghai’s status as an international financial centre, while a focus on innovation and high-tech industries complements the manufacturing strength of the Yangtze River Delta. Together, the SEZ and Shanghai Port drive the city’s role as a critical node in global supply chains.
Shenzhen Port is situated in the Pearl River Delta near Hong Kong. Shenzhen Port is another key player in China’s maritime infrastructure. As a gateway to southern China’s manufacturing belt, Shenzhen handles around 30 million TEUs annually. The port is closely integrated with the Shenzhen Special Economic Zone, which has attracted significant foreign investment since its establishment in the 1980s. This integration has transformed Shenzhen into a global technology and manufacturing hub, with many TNCs establishing facilities in the region, like Foxconn. Shenzhen Port’s close ties to high-tech industries in the SEZ make it a critical link for exporting electronics, machinery, and other high-value goods to markets worldwide.
Together, Shanghai and Shenzhen illustrate how China’s port infrastructure and economic zones contribute to the country’s role in global supply chains. These ports showcase the importance of strategic planning, investment in port infrastructure, and strong connections to industrial hubs, which enhance a port’s competitiveness and integration into the global economy.
#c) Understanding foreland and hinterland in port operations
Ports act as interfaces between global and local economies, connecting international markets through their foreland and supporting regional economies through their hinterland:
Foreland: Refers to the international regions connected by a port's sea routes, enabling it to facilitate trade on a global scale. For example, Rotterdam’s foreland includes major markets in Europe, Asia, and North America.
Hinterland_: Refers to the inland areas a port serves domestically or regionally, distributing goods through road, rail, and river connections. Ports like Shanghai link production centres in the Yangtze River Delta with global markets, demonstrating the strategic role of efficient hinterland connections in port operations.
The effectiveness of a port’s foreland and hinterland connections significantly impacts its efficiency, competitiveness, and ability to integrate into global trade networks.
#d) Technological advancements in maritime transport
Advances in technology have transformed maritime transport, making it more efficient and cost-effective.
- Containerisation (1960s): Standardised containers revolutionised shipping by reducing handling times and costs, creating seamless supply chains across ship, truck, and rail.
- Automation and digitalisation (1990s–present): Automated cranes, robotic systems, and digital tracking have become integral to modern ports, enabling greater speed and efficiency. Ports like Rotterdam utilise AI to optimise loading and unloading processes.
- AI-driven logistics and autonomous ships (2000s–present): AI improves route planning, demand forecasting, and real-time tracking. Trials of autonomous ships aim to reduce labour costs and increase safety, though challenges around cybersecurity and potential job displacement remain concerns.
These advancements streamline maritime operations, reduce costs, and support the exponential growth of global trade, making ports and shipping more adaptable and resilient.
#e) Influence of large shipping companies on maritimisation
Major transnational shipping companies, such as CMA-CGM, Maersk, MSC, COSCO, and China Merchants Group, play pivotal roles in maritimisation. These companies shape global trade routes, manage extensive fleets, and invest heavily in port infrastructure. Through vertical integration, these companies handle logistics from shipping to warehousing and distribution, creating efficient supply chains that integrate local economies into global markets. In emerging economies, these companies often invest in port infrastructure and logistics hubs, fostering industrial growth and improving market access.
#C. Governance, resources, and environmental impacts
#a) Maritime zones and regulatory frameworks
The global maritime industry operates within a complex framework of international laws and regulations designed to ensure safe, sustainable, and equitable use of the seas. The United Nations Convention on the Law of the Sea (UNCLOS) is the primary legal framework, defining various maritime zones and establishing guidelines for rights and responsibilities within them:
- Internal waters: Areas within the baseline (often the low-water line along the coast) over which a state has full sovereignty.
- Territorial sea (up to 12 nautical miles): Coastal states exercise sovereignty but must allow innocent passage of foreign vessels.
- Contiguous zone (up to 24 nautical miles): Allows coastal states to enforce laws related to customs, immigration, and pollution.
- _Exclusive Economic Zone (EEZ, up to 200 nautical miles): Grants coastal states rights to explore and manage resources but mandates freedom of navigation for others. States can expand their EEZ according to the continental shelf. They have rights over seabed resources, extending up to 200 nautical miles or beyond if the shelf naturally extends.
- High seas: Areas beyond national jurisdiction (ABNJ), where freedoms of navigation, fishing, and scientific research are permitted under international agreements.
Compliance with International Maritime Organisation (IMO) regulations, such as MARPOL (for pollution) and SOLAS (for safety), is crucial for sustainable and secure maritime operations. Regional bodies, such as the European Union, also enforce additional regulations, creating a multi-scalar governance structure that supports maritime trade and environmental protection.
#b) Supply of maritime resources
Seas and oceans are rich in resources vital to global economies. However, managing these resources sustainably presents challenges:
- Fisheries and sustainable management: Over 80 million tonnes of fish are harvested yearly, with China, Indonesia, and the US leading production. However, overfishing threatens marine biodiversity and food security, particularly in high-production regions like the Pacific. Expanding aquaculture provides alternatives but also raises sustainability concerns, requiring balanced management.
- Mineral and energy resources: Offshore oil and gas account for a substantial portion of global production, with deep-sea drilling reaching resources in areas like the Gulf of Guinea and the Arctic. Renewable marine energy, particularly offshore wind, is gaining traction, with the UK heavily investing in wind farms. Sustainable management of these resources is crucial, as environmental impacts can affect marine ecosystems and coastal communities.
- Tourism and leisure industries: Coastal and maritime areas attract millions of tourists annually, especially in regions like the Mediterranean and the Caribbean. The cruise industry, marinas, and recreational boating generate revenue but also contribute to environmental degradation, highlighting the need for sustainable tourism practices.
#c) Environmental and social implications of maritimisation
While maritimisation drives economic integration, it also introduces environmental and social impacts:
- Environmental impacts: Expanding port infrastructure and increased maritime traffic contribute to pollution, habitat loss, and biodiversity threats. Ports and shipping lanes have a high carbon footprint due to reliance on fossil fuels, prompting calls for greener technologies, such as alternative fuels and emissions-reducing practices in the shipping industry.
- Social impacts: Maritimisation creates jobs and drives economic growth in port cities, yet large-scale port expansions can lead to urban congestion and displace local communities. Governance that balances economic growth with community welfare and environmental preservation is essential to sustain local economies without compromising social stability.
- Tourism-related impacts: Coastal tourism brings economic benefits but also strains local environments. Issues such as waste, water pollution, and physical damage to ecosystems (e.g., coral reefs) require regulation and sustainable practices, particularly in fragile environments like the Caribbean and Mediterranean.
#d) Unequal integration and spatial disparities in maritime trade
The global maritime system is highly uneven, with some regions more integrated than others:
Major maritime façades: Regions like the Northern Range in Europe and Asia’s coastal economies dominate global trade flows due to their advanced port infrastructure, economic ties, and geographic positioning.
Peripheral regions: Landlocked countries and economically isolated areas remain peripheral to maritime trade, often relying on neighbouring countries’ port access, which can limit economic growth and increase dependency. Some of those countries are part of the LDCs (Least Developed Countries).
This unequal integration affects access to resources and development opportunities, creating geographic and economic disparities that are particularly challenging for landlocked and isolated economies.
#e) Climate change and ocean health
Climate change poses significant threats to ocean health, affecting biodiversity, sea levels, and coastal communities:
- Sea level rise: Rising sea levels threaten coastal areas, including major port cities, making infrastructure more vulnerable to flooding and storm surges.
- Ocean acidification: Increased carbon dioxide absorption by oceans leads to acidification, harming marine ecosystems and species reliant on calcium, such as coral reefs and shellfish.
- Extreme weather events: More frequent and intense hurricanes and typhoons can damage port infrastructure, disrupt trade routes, and impact local economies reliant on maritime activities.