Maritime transport: Concept, advantages and documentation

July 25, 2023

Maritime transport plays a key role in international trade and is considered the backbone of the global economy.

maritime transport, cargo ship, commercial transport by sea, maritime transport of goods, Más Colombia

Maritime transport refers to the transport of goods and people across the world’s oceans and seas. This form of transportation, which has existed for centuries, continues to be the most widely used in international logistics, accounting for more than 80% of the movement of goods worldwide.

It is a vital part of international trade and plays a key role in the global economy. Its advantages in terms of capacity, flexibility, efficiency and geographic coverage make it the preferred choice for transporting goods worldwide.

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Despite the challenges and changes in the industry, shipping continues to be a driving force in global trade and the economic growth of nations.

Maritime transport in Colombia’s international trade

Colombia does not escape global trends in the use of this means of transportation. According to DANE figures, between 2021 and 2022, 74% of Colombian international trade moved by sea.

About 82% of exports and 68% of imports registered the use of maritime transport in Colombian customs. In the case of exports, 53% of the vessels were loaded with mining products, 43% with manufactured goods and 4% with agricultural products.

On the other hand, of the goods that entered the country by sea, 91% were manufactured products and 8% agricultural products.

Advantages of maritime transport

Maritime transport has unique characteristics that differentiate it from other forms of transportation. The geographical coverage of maritime transport is one of them. Maritime routes extend all over the world, connecting ports in different countries and continents.

In addition, the development of artificial canals, such as the Suez Canal and the Panama Canal, has further facilitated international trade by shortening distances and reducing transit times. This, in turn, has had a significant impact on economic development and on boosting trade between nations.

One of the most outstanding advantages of maritime transport is its ability to handle large volumes of cargo. Ships can carry a large amount of containerized, solid bulk or liquid cargo, even if it is dangerous goods.

With different types of vessels and vessel sizes to suit the specific needs of each cargo, shipping also offers flexibility and versatility. From container ships to bulk carriers and tankers, the various options allow companies to adapt to the changing needs of international trade.

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In addition, maritime transport is a cost-efficient means of transport. Although it can take longer than other forms of transportation, maritime transport is often more economical, especially when significant cargo volumes and long distances are involved. This makes it an attractive option for reducing logistics costs and increasing competitiveness in the global marketplace.

Safety and stability are key aspects of shipping. Modern ships are equipped with advanced technology and adhere to strict safety regulations, ensuring that shipments and people are transported safely.

In addition, marine insurance is widely available to protect cargo in the event of loss or damage during transport.

Challenges of shipping

Despite all the advantages of maritime transport, there are also challenges and aspects to be taken into account.

Paperwork is one of them. The documentation and paperwork process in maritime transport can be complex and requires the submission of various documents, such as contracts, commercial invoices, certificates of origin and payment agreements. This bureaucratic aspect can be time-consuming and require additional effort on the part of companies and exporters.

Another challenge is the time factor. Although sea freight is a cost-efficient option, it can take longer than other forms of transport, especially compared to air freight.

Transit times may vary depending on distance, routes and other external factors such as weather and sea conditions.

But, undoubtedly, the main challenge is the new regulations that seek to move the sector towards the use of new energy sources, as it generates 3% of annual global greenhouse gas emissions.

The sector is recovering and evolving

In terms of shipping demand, there has been a gradual recovery after the impacts of the pandemic. In recent years, digitalization processes in economic circuits, including shipping, have accelerated.

The adoption of digital technologies has enabled greater efficiency in maritime-port processes and an optimization of workflows, which in turn has led to cost reductions in the industry.

Likewise, relocation is an emerging trend in global supply chains that has affected the sector. Industries are reconsidering offshoring and moving production plants closer to consumer markets, as in the case of Mexico, which expects to receive investments of more than US$11 billion this year to serve the North American market.

The increase in demand following the pandemic has led to a greater supply of containers and ships, which has put downward pressure on shipping costs in some trade routes. For example, since 2021 the freight on the route from Shanghai, in China, to the city of Santos, in the State of Sao Paulo in Brazil, has been reduced by 77%.As evidenced by DANE figures, this outlook is favorable for the performance of the Colombian economy, as the reduction in shipping costs relieves inflationary pressure on 67% of manufactured goods and 96% of imported agricultural products.