L 1 Content

Question 1

Q1: What percentage of global trade moves by sea?

Answer 1

A1:
Over 80% by volume and 75% by value of global trade is transported via maritime routes.

Question 2

Q2: What is containerisation and why is it important?

Answer 2

A2:
Containerisation is the use of standard-sized containers for shipping goods. It revolutionised maritime trade by making loading, unloading, and transport cheaper, faster, and more efficient, enabling global supply chains.

Question 3

Q3: Which regions dominate maritime trade and port activity?

Answer 3

A3:
East and Southeast Asia dominate, handling 40% of global trade, 64% of containers, and hosting 15 of the 20 busiest ports (e.g., Shanghai, Singapore).

Question 4

Q4: What is LNG and why is it important for maritime trade?

Answer 4

A4:
LNG stands for Liquefied Natural Gas. It is natural gas cooled to –162°C to become liquid for easier and safer transport. LNG is a crucial energy source, especially for Asia and Europe, and passes through key maritime chokepoints.

Question 5

Q5: What are strategic maritime chokepoints? Name examples.

Answer 5

A5:
They are narrow maritime passages vital to global trade.
Examples:
• Strait of Malacca (25% of trade)
• Strait of Hormuz (30% of oil, 20% of LNG)
• Suez Canal (12% of world trade)
• Panama Canal (links Atlantic and Pacific)

Question 6

Q6: What is a “flag of convenience”?

Answer 6

A6:
When a ship is registered in a country different from the owner’s, often to avoid higher taxes, strict labour laws, or safety regulations.
Common flags: Panama, Liberia, Malta

Question 7

Q7: Why do shipping companies use flags of convenience?

Answer 7

A7:
To reduce costs by avoiding regulations, cut taxes, and hire cheaper labour under looser laws. This makes shipping more profitable but often lowers safety and labour conditions.

Question 8

Q8: Who controls the undersea internet cables?

Answer 8

A8:
Mostly US tech companies like Google, Facebook, Microsoft, and telecom firms from Japan, Europe, China, and India.
40% of projects are funded by big tech.

Question 9

Q9: How much internet traffic travels through undersea cables?

Answer 9

A9:
About 95% of all international internet traffic is carried by undersea fibre-optic cables.

Question 10

Q10: What happened in Somalia when its cable was cut in 2017?

Answer 10

A10:
The country lost access to the internet, which halved its GDP for that day, showing how critical undersea cables are to modern economies.

Question 11

Q11: Why are maritime routes unequally distributed?

Answer 11

A11:
Most trade happens between global economic cores (Asia, EU, USA), while developing countries often only export raw materials and have secondary ports and weaker connectivity.

Question 12

Q12: What resources come from the sea besides trade routes?

Answer 12

A12:
• Oil and gas (⅓ of global production from offshore drilling)
• Seafood (majority from aquaculture/fish farming)
• Employment (especially in fishing and transport)

Question 13

Q13: Who dominates global shipping companies?

Answer 13

A13:
Firms like:
• Maersk (Denmark)
• CMA-CGM (France)
• COSCO (China)
These companies, mostly from Global North and emerging powers, carry over 80% of goods.

Question 14

Q14: What are the environmental risks of maritime globalisation?

Answer 14

A14:
• Pollution from ships
• Destruction of marine habitats (especially from ports and oil platforms)
• Overfishing
• Undersea cable accidents affecting internet and trade

Question 15

Q15: Why is maritime globalisation essential but fragile?

Answer 15

A15:
Because it connects the world’s economy but relies on few chokepoints, rich countries, and weak legal controls. Disruptions—like canal blockages or war—can cripple trade and communication globally.