Globalisation is vital for international business and for development of industries like maritime; however, after researching deeper it is discovered that it is a problem for maritime industries for varied reasons. Firstly, globalisation closely relates to territorial disputes as different parties enter foreign territories and thus bring about conflict situation where interests of local population differ with their own; making contest one of the main reasons why globalisation is a problem for maritime industries.
Firstly, it is worth discussing the principle of maritime transportation/shipping in relation to globalisation where it is broken down to a network of specialised vessels, ports they dock in and the transportation infrastructure which includes factories and terminals as well as markets and distributors. Sea routes, in relation to some types of commodities and routes have no substitution. Along with that, it is also worth briefly analysing the principle of globalisation as well as reasons for this phenomenon to exist are important factors in recognition of maritime problems; globalisation basically, is motivated by the fact that certain goods are not recognised to be necessary by some communities; globalisation, hence makes these goods relevant and necessary with cultural exchange between local population and operator.
The factor of possession of territories is important for any business and if a territory is owned by a certain marine operator it becomes necessary to expand as the operations grow in size, frequency and scale of operations themselves. Such circumstances require take-over of more territory which has a chance to result in conflict; armed or legal. Maritime industry has access to a lot of financial resources which increase possibilities for expansion and buying out of local property; creating more opportunities for conflict.
As shown in the infographic above, the EU shipping industry has potential to produce largest economic impact due to their high financial resource access, high employment rate (in relation to people hired) and high overall revenue. Economic impact can bring about influence which increases directly with the financial resources a company invests in the local operations which start from the company challenging local governments over a piece of territory important to the company. The local government thus, is likely to respond with military-oriented foreign policy practices as this is seen as a take-over and a threat of war. Another factor in maritime operations which closely associates with ports and incoming ship traffic; Regionalisation, a process done to accommodate increasing traffic which follows the increase of complexity of freight distribution; adding chance for the port to expand its territory physically.
Territorial disputes are the first reason why globalisation is a challenge for the maritime industry; however it is not the only one. Another issue lies within realms of maritime security as it associates with arms trafficking, narco-terrorism and illegal immigration as these violations utilise sea routes more frequently than land routes. The growing popularity of sea routes effectively, places maritime operators at risk of violation of international laws which harms the operator himself.
Overall, main problems of maritime industries that arise with the increasing rate of globalisation involve conflicts with local communities and their territory; occasionally inevitable in nature. Maritime operators are increasing in importance as sea routes are, in some circumstances irreplaceable and thus increase their profit and later on, their influence locally. Along with that, certain criminal activities such as arms and drug trafficking takes over the maritime space and jeopardise reputations of operators; another potential side effect of globalisation. Finally, globalisation is a problem for maritime industries due to the goods involved as populations of countries visited may not receive them positively; costing operators resources.
