Crude factors that affect were input costs, real

Crude has been the major cargo
type transported by shipping since 1970s, Then later of 1970 decade and 1980,
there was an economic crisis in the world as a result production was declined
significantly as shown in the graph, The production and consumption of oil was
in different regions of the world, most of the production processes located in
the west of Asia and Venezuela and large consumers were China, USA and Russia.

The need of the crude oil
increased with the modern life style. Until 1950 crude oil was refined in
source. Then crude oil refined closer to product market. It was based on
economic of scale. In 1999, developing countries were recovered from financial
crisis in Asia and also impact on recession Latin America. It was the lowest
recorded since 1987 in Latin America. Then in 2000 economy established

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Total of 2,159 Million tons of
cargo has loaded and 70% were petrochemicals. Supertankers are used to
transport crude oil between Asia, the United States and Europe. In 2011, OPEC
decided to reduce crude oil supply since they contribute for 60% of world supply,
crude oil shipping declined for that period.

Production of crude oil impact on the production of
petroleum gas. Other factors that affect were input costs, real income shifts,
monetary and fiscal policies, global growth, reduced investment in new
development. Countries such as Russia is producing gas as well the price
changes of world crude oil impact the supply of gas in the graph shows a
significant increment petroleum and gas, most of the time it was effected by
world moved to alternative energy sources from crude oil and crude refining
business growth in Asian region the these type cargo transportation was
significantly increased.  After 2008 OPEC
reduced the crude oil supply then natural gas producers face a financial
crisis.

Dry cargo

Major dry cargo types are grain, iron ore, coal, Alumina,
phosphate. Dry bulk has a major influence to the total seaborne trade capacity.
Growth of the population all over the world and life style changes demand for
new products was increased therefore steel production, infrastructure
development of countries, urbanization and evolution of global manufacturing is
impact on increasing of volume of dry bulk shipping. In the harvest time dry
bulk of grain transportation make high traffic to the importing and exporting
countries.

After recession in Latin America
impact in 1997-1998, Bulk cargo is was the largest portion of maritime
transport, almost annual 1/4 of freight. That was a significant impact show in
the graph.

Crude oil price fluctuations in
2008-2011 impact on drop of dry bulk shipping

Total cargo has increased dramatically through all, in 1970
world was in a financial crisis so production went drop and same time as we can
see in the graph total cargo transport was declined. Between 2008 and 2012
graph shows a significant fall in maritime cargo transport because that time
OPEC oil organization reduced their crude oil supply that impact on world
economy the same time USD strength goes down then artificial barriers were put
on international trade the after mid of 2015 oil priced goes down and world
economy was grown and stabilized

x

Hi!
I'm Harold!

Would you like to get a custom essay? How about receiving a customized one?

Check it out