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In the Atlantic, a hurricane will draw up cool water from the depths and making it less likely
that further hurricanes will follow in its wake (warm water being one of the preconditions
necessary for their formation). HoRweIvSerK, thMe GAulf is shallower and its entire water column
is warm. When a hurricane passes over, although the water temperature may drop it soon
rebounds and becomes capable of supporting another tropical storm.
Location of the Gulf of Mexico relative to the Caribbean Sea and Pacific Ocean.
Caribbean Sea
The Caribbean Sea is a body of water adjacent to the Atlantic Ocean, and the Gulf of Mexico.
It is bordered by the South American countries of Venezuela and Colombia on the south;
the Central American countries of Panama on the southwest, and Costa Rica, Nicaragua,
Guatemala, Honduras, and Belize on the west; the Greater Antilles (Cuba, Jamaica, the
Dominican Republic and Puerto Rico) on the north, and the Lesser Antilles on the east. The
entire area of the Caribbean Sea, the numerous islands of the West Indies, and adjacent
coasts, are collectively known as the Caribbean.
The Caribbean Sea is one of the largest salt water seas and has an area of about 2,754,000
km² (1,063,000 square miles).[2] The sea's deepest point is the Cayman Trough, between
Cuba and Jamaica, at 7,686 m (25,220 ft) below sea level. The Caribbean coastline has many
gulfs and bays: the Gulf of Gonâve, Gulf of Venezuela, Gulf of Darien, Golfo de los Mosquitos
and Gulf of Honduras.
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Map of the Caribbean Sea
Waterways
Mississippi River
The Mississippi River is the second longest river in the United States, with a length of
3,770 km from its source in Lake Itasca in Minnesota to its mouth in the Gulf of Mexico. The
longest river in the United States is a Mississippi tributary, the Missouri River, measuring
4,090 km.
The Mississippi River is part of the Jefferson-Missouri-Mississippi river system, which is the
largest river system in North America and among the largest in the world: by length
6,300 km, it is the fourth longest, and by its average discharge of 16,200 m³/s, it is the tenth
largest river.
The name Mississippi is derived from the Ojibwe word misi-ziibi ("Great River") or gichi-ziibi
("Big River") at its headwaters.
The Missouri River flows from the confluence of the Jefferson, Madison, and Gallatin flows
into the longest river in United States, the Mississippi River. Taken together, the Jefferson,
the Missouri, and the Mississippi form the longest river system in North America.
If measured from the source of the Jefferson at Brower's Spring, to the Gulf of Mexico, the
length of the Mississippi-Missouri-Jefferson combination is approximately 6,300 km, making
the combination the 4th longest river in the world. The uppermost 333 km of this combined
river are called the Jefferson, the lowest 2,176 km are part of the Mississippi, and the
intervening 3,767 km are called the Missouri.
The Arkansas River is the second longest tributary of the Mississippi River. Measured by
water volume, the largest of all Mississippi tributaries is the Ohio River.
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The widest point of the Mississippi River is Lake Winnibigoshish, near Grand Rapids,
Minnesota at over 11 km across. Also of note is Lake Onalaska, near La Crosse, Wisconsin,
where the river is over 6.4 km widRe (cIrSeaKtedMby ALock and Dam No. 7) and Lake Pepin at more
than 3 km wide. However, the first two areas are lakes or reservoirs rather than free flowing
water. In other areas where the Mississippi is a flowing river (other than Lake Pepin), it
exceeds 1.6 km in width in several places in its lower course.
The Mississippi River runs through 10 states and was used to define portions of these states'
borders. The middle of the riverbed at the time the borders were established was the line
to define the borders between states. The river has since shifted, but the state borders of
Wisconsin, Iowa, Illinois, Missouri, Kentucky, Arkansas, Tennessee, and Mississippi have not
changed; they still follow the former bed of the Mississippi River as of their establishment.
The river is divided into the upper Mississippi, from its source south to the Ohio River, and
the lower Mississippi, from the Ohio to its mouth near New Orleans, Louisiana.
You need to trace the course of the Mississippi on a good map of the United States of
America.
Panama Canal
The Panama Canal is a man-made canal in Panama which joins the Pacific and Atlantic
oceans. One of the largest and most difficult engineering projects ever undertaken, it had
an enormous impact on shipping between the two oceans, replacing the long and
treacherous route via the Drake Passage and Cape Horn at the southernmost tip of South
America. A ship sailing from New York to San Francisco via the canal travels 9,500 km, well
under half the 22,500 km route around Cape Horn. Although the concept of a canal near
Panama dates back to the early 16th century, the first attempt to construct a canal began in
1880 under French leadership. After this attempt failed and saw 21,900 workers die, the
project of building a canal was attempted and completed by the United States in the early
1900s, with the canal opening in 1914. The building of the 77 km canal was plagued by
problems, including disease (particularly malaria and yellow fever) and landslides. By the
time the canal was completed, a total of 27,500 workmen are estimated to have died in the
French and American efforts.
Since opening, the canal has been enormously successful, and continues to be a key conduit
for international maritime trade. The canal can accommodate vessels from small private
yachts up to large commercial vessels. The maximum size of vessel that can use the canal is
known as Panamax; an increasing number of modern ships exceed this limit, and are known
as post-Panamax or super-Panamax vessels. A typical passage through the canal by a cargo
ship takes approximately 8-10 hours. In fiscal year 2008, 14,702 vessels passed through the
waterway with a total 309.6 million Panama Canal/Universal Measurement System
(PC/UMS) tons.
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While the Pacific Ocean is west of the isthmus and the Atlantic to the east, the journey
through the canal from the Pacific to the Atlantic is one from southeast to northwest. This
is a result of the isthmus' "curvingRbIaSckKon MitseAlf" in the region of the canal. The Bridge of
the Americas at the Pacific end is about a third of a degree of longitude east of the end near
Colon on the Atlantic.
A schematic of the Panama Canal, illustrating the sequence of locks and passages
St Lawrence Seaway
The St. Lawrence Seaway is the common name for a system of canals that permits ocean-
going vessels to travel from the Atlantic Ocean to the Great Lakes, as far as Lake Superior.
Legally it extends from Montreal to Lake Erie, including the Welland Canal and the Great
Lakes Waterway. The seaway is named after the Saint Lawrence River, which it follows from
Lake Ontario to the Atlantic Ocean.
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Map of the St. Lawrence Seaway and the Great Lakes
Here is an article taken from Ports & Ships Maritime News about the 50th birthday of the St.
Lawrence Seaway:
St Lawrence Seaway 50 years young
The St Lawrence Seaway linking the Atlantic Ocean with the Great Lakes and the American
Midwest, celebrated turning 50 years old early in April 2009.
Described as having been highly successful in having had over 2,5 billion tonnes of cargo
valued at more than US$375 billion carried along its 800-mile (1287km) length since
inception, the Seaway is also seen by others as an environmental problem in that up to 57
invasive species have been introduced not only into the river but the Great lakes as well.
“The Seaway has been successful for the last 50 years and, despite today’s challenging
economic conditions, we are pressing ahead with a number of initiatives to position the
system for success during the next 50 years”, said Richard Corfe, President and CEO of The
St. Lawrence Seaway Management Corporation (SLSMC).
Corfe said that lock equipment was in the process of being updated by applying today’s
technology. A hands-free mooring system currently under test in the Seaway Welland Canal
has the potential to automate much of a vessel’s transit, while accommodating a wider
variety of vessels into existing lock chambers.
We are optimistic that efforts to streamline Seaway operations, coupled with toll incentives,
will attract new users to the system while spurring our customers to invest in new vessels”,
said Mr Corfe.
The Seaway was constructed with a series of seven locks and three dams in the St Lawrence
River between Lake Ontario and Montreal and promoted as the means of bringing economic
activity to ports across the Great Lakes, although today only seven percent of all shipping
traffic in the Great Lakes can be said to be truly international.
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In its golden era, shortly after opening in 1959 the Seaway carried considerable loads of
grain eastward from the American and Canadian Midwest with steamships returned with
loads of iron ore and steel to suppRly IbSusKy steMel mAills and the auto factories of Detroit.
Many of the cities and towns bordering the lakes owe much of their prosperity to having
access to the open ocean and world trade as a result of the Seaway, and although the
emphasis of trade has since moved in favour of Asia, the waterway still provides an
important service to industry and the economy as a whole, although traffic volumes have
dropped in recent years, barely topping 42 million tonnes by 2007 compared with peaks
around 74mt in the 1980s.
“We've struggled in the last 20 years, no question,”' admits Corfe. “The world has changed
dramatically since 1980, and we've had to ask ourselves how to remain relevant.”
He said the seaway would eventually return to growth, especially when environmental
considerations were taken into account more seriously. “As we get back into the full
economy, clients will have to balance their costs with the greening of the supply chain.” He
said another path toward that goal would be through more agreements with road and rail
companies.
A year ago a study co-sponsored by Transport Canada and the US Department of Transport
found that at the seaway’s current 40mt it would cost shippers an additional US$1.2 billion
annually if they switched to rail or road transport, while placing vast amounts of additional
greenhouse gases into the atmosphere.
Terry Collister, President of the Saint Lawrence Seaway Development Corp, Corfe’s US
counterpart, said the St Lawrence Seaway was primarily a channel for commodities, “so we
don’t create demand, we meet it.”
“Railways do a very good job, but the most reliable, dependable and sure way to get your
merchandise delivered to Chicago on Tuesday at 3 pm is via the seaway,” said Corfe. sources
Montreal Gazette, Canwest News Service, MGN and Ports & Ships.
English Channel
The English Channel (French: La Manche, "the sleeve") is an arm of the Atlantic Ocean that
separates England from northern France, and joins the North Sea to the Atlantic. It is about
562 km long and varies in width from 240 km at its widest to only 34 km in the Strait of
Dover. It is the smallest of the shallow seas around the continental shelf of Europe, covering
an area of some 75,000 square kilometres
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The English Channel
The Channel Tunnel also called the Chunnel, is a 50.5-kilometre undersea rail tunnel linking
Folkestone, Kent in England with Coquelles near Calais in northern France beneath the
English Channel at the Strait of Dover. At its lowest point, it is 75 m deep. The Channel
Tunnel has the longest undersea portion of any tunnel in the world.
The tunnel carries high-speed Eurostar passenger trains, Eurotunnel ro-ro vehicle transport
and international rail freight trains. In 1996 the American Society of Civil Engineers identified
the tunnel as one of the Seven Wonders of the Modern World.
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Mainz River (Rhine River)
The Rhine is one aovfetrhaegelodnisgcehsatragRnedoIfmSmoKostreiMmthpaAonrt2a,n0t00rivceurbsicinmEeuterorspepearts1e,c3o2n0d.kilometres
(820 mi), with an
The Rhine and the Danube formed most of the northern inland frontier of the Roman
Empire, and since those days the Rhine has been a vital navigable waterway, carrying trade
and goods deep inland. It has also served as a defensive feature, and has been the basis for
regional and international borders. The many castles and prehistoric fortifications along the
Rhine testify to its importance as a waterway. River traffic could be stopped at these
locations, usually for the purpose of collecting tolls, by the state controlling that portion of
the river.
Large cities
Basel, Strasbourg, Karlsruhe, Mannheim, Ludwigshafen, Wiesbaden, Mainz, Koblenz, Bonn,
Cologne, Düsseldorf, Krefeld, Duisburg, Arnhem (Nederrijn), Nijmegen (Waal), Utrecht
(Kromme Rijn), Rotterdam (Nieuwe Maas).
Smaller cities
Chur, Konstanz, Schaffhausen, Breisach, Speyer, Worms, Bingen, Rüdesheim, Neuwied,
Andernach, Bad Honnef, Königswinter, Niederkassel, Wesseling, Dormagen, Zons,
Monheim, Wesel, Xanten, Emmerich, Zutphen, Deventer, Zwolle, Kampen.
Map of the Rhine
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Bering Straits
RISK MA
Nautical chart of the Bering Strait
The Bering Strait is a sea strait between Cape Dezhnev, Russia, the easternmost point
(169°43' W) of the Asian continent and Cape Prince of Wales, Alaska, the westernmost point
(168°05' W) of the North American continent, with latitude of about 65° 40' north, slightly
south of the polar circle. It is one of the biggest of its kind.
Strait of Gibraltar
The Strait of Gibraltar is the strait that connects the Atlantic Ocean to the Mediterranean
Sea and separates Spain from Morocco. The name comes from Gibraltar, which in turn
originates from the Arabic Jebel Tariq meaning mountain of Tariq. It refers to the Umayyad
Berber general Tariq ibn-Ziyad who led the Islamic conquest of Hispania in 711. Despite its
origins, the Arab name for the Strait is Bab el-Zakat or "Gate of Charity". It is also known as
the Straits of Gibraltar or STROG (Strait of Gibraltar), in naval use.
There are 14.24 km of ocean separating Europe from Africa at the strait's narrowest point.
The strait depth ranges between 300 and 900 metres (980 and 3,000 ft). A ferry commutes
between the two continents. The Spanish part of the strait is protected under the El Estrecho
Natural Park.
The Straits are an important shipping route from the Mediterranean to the Atlantic. There
are ferries that operate between Spain and Morocco across the strait, as well as between
Spain and Ceuta and Gibraltar to Tangier.
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The Strait of Gibraltar as seen from space.
(North is to the left: The Iberian Peninsula is on the left and North Africa on the right).
Suez Canal
The Suez Canal is a canal in Egypt. Opened in 1869, it allows water transportation between
Europe and Asia without navigating around Africa or carrying goods overland between the
Mediterranean and the Red Sea. The northern terminus is Port Said.
The canal is 192 km long. It is single-lane with 4 passing places north and south of the Great
Bitter Lake, and links the Mediterranean Sea to the Gulf of Suez on the Red Sea.
The canal is owned and maintained by the Suez Canal Authority (SCA) of the Arab Republic
of Egypt.
The canal allows passage of ships up to 150,000 tons displacement. It permits ships up to 16
m draft to pass, and improvements are planned to increase this to 22 m by 2010, allowing
passage of fully-laden super-tankers.
Some super-tankers are too large. Others can offload part of their cargo onto a canal-owned
boat and reload at the other end of the canal.
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sThhiepsmwaihnicahltaerrenattoivoelaisrgtera, vaenlldinwg aaRsrotIhuSendKroCuatMpeebAAegfuorlheatshveiacaCnaaplewTaoswcno.nTshtrisucistethdearnoduwtehfeonr
the canal was closed. Today due to increasing piracy in Somalia this route is taken, due to
safety reasons.
Also, before the canal's opening in 1869, goods were sometimes offloaded from ships and
carried overland between the Mediterranean and the Red Sea. The most ships that can go
in one day is 106.
Map of the Suez Canal
Mozambique Channel
The Mozambique Channel is a portion of the Indian Ocean between the island of
Madagascar and southeast Africa, namely Mozambique. The channel is approximately 460
kilometres across at its narrowest point between Angoche, Mozambique, and
Tambohorano, Madagascar.
The channel reaches a depth of 3,292 meters about 230 kilometres off the coast of
Mozambique. A warm current flows in a southward direction in the channel, leading into
the Agulhas Current off the east coast of South Africa. It is around 1000 miles (1600
kilometres) long and the width of it varies from 250-600 miles.
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Strait of Malacca
The Strait of Malacca is a narrow, 805 km (500 mile) stretch of water between Peninsular
Malaysia (West Malaysia) and the Indonesian island of Sumatra. It is named after the state
of Melaka, Malaysia.
From an economic and strategic perspective the Strait of Malacca is one of the most
important shipping lanes in the world.
The strait is the main shipping channel between the Indian Ocean and the Pacific Ocean,
linking major Asian economies such as India, China, Japan and South Korea. Over 50,000
vessels pass through the strait per year, carrying about one-quarter of the world's traded
goods including oil, Chinese manufactures, and Indonesian coffee.
About a quarter of all oil carried by sea passes through the strait, mainly from Persian Gulf
suppliers to Asian markets such as China, Japan, and South Korea. In 2006, an estimated
15 million barrels per day (2,400,000 m³/d) were transported through the strait.
The maximum size of a vessel that can make passage through the Strait is referred to as
Malaccamax. The strait is not deep enough (at 25 metres or 82 feet) to permit some of the
largest ships (mostly oil tankers) to use it. A ship that exceeds Malaccamax will typically use
the Lombok Strait, Makassar Strait, Sibutu Passage and Mindoro Strait instead.
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At Phillips Channel near Singapore, the Strait of Malacca narrows to 2.8 km wide, creating
one of the world's most significant traffic chokepoints.
RISK MA
Map of the Strait of Malacca
Bass Strait
Bass Strait is a sea strait separating Tasmania from the south of the Australian mainland (in
particular the state of Victoria).
Map of Australia with Bass Strait marked in light blue
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2.3. Geographical locations of major ports are identified on a world map
(Major ports may include but oafreNRingoeItrSilaiKm, TitaenMdzatnAoiat,hAenSgooulath, NAafmriciabnia,inMteorznaamtiboinqaulep,oCratns aadnad,
one international port in each
USA East Coast, USA West Coast, USA Gulf, South America, each country in the European
Union, Middle East, India, Malaysia, Singapore, China, Australia and New Zealand)
Having located the world’s oceans and the major seas and waterways we can now start
locating the ports of the world that have maximum importance to the forwarder operating
in the part of the world.
We will locate and briefly discuss each.
Ports in South Africa
Map of South Africa showing the
localities (moving from East to West)
of the ports of Richards Bay, Durban,
East London, Port Elizabeth, Cape
Town and Saldanha Bay
Richards Bay
Richards Bay is a city encompassing
one of South Africa's largest
harbours. It is situated on a 30
square kilometre lagoon of the
Mhlatuze River, on the northern
coast of KwaZulu-Natal.
The Richards Bay Coal Terminal is
the largest coal export facility in the
world with a planned capacity of 91
million tons per year by the first half
of 2009. In 2007 annual throughput
was 66.12 million tons.
Two aluminium smelters and a
fertiliser plant have been erected at the harbour. Iron ore, rutile (titanium oxide) and zircon
are mined from the sand dunes close to the lagoon by Richards Bay Minerals Richards Bay
Minerals. Local exports include coal, aluminium, titanium and other heavy minerals, granite,
ferrochrome, paper pulp, woodchips and phosphoric acid.
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Durban
DeTuhrebkawn i(nZiumlue:terTohpeokliwtainni)misunthiceipthaRliirtdyI.mSItoKissttphMoeplauArlogeusstccitityyininSKowutahZuAlfur-icNaa,tfaolramnidngispfaamrt oouf sthaes
the busiest port in Africa.
Durban has a long tradition as a port city. The Port of Durban, which was formerly known as
the Port of Natal, is one of the few natural harbours between Port Elizabeth and Maputo,
and is also located at the beginning of a particular weather phenomenon which can cause
extremely violent seas. These two features made Durban an extremely busy port of call for
ship repairs when the port was opened in the 1840s. The Port of Durban is now the busiest
port in South Africa, as well as the busiest container port in the Southern Hemisphere.
The modern Port of Durban grew around trade from Johannesburg, as the industrial and
mining capital of South Africa is not located on any navigable body of water. Thus, products
being shipped from Johannesburg outside of South Africa have to be loaded onto trucks or
railways and transported to Durban. The Port of Maputo was unavailable for use until the
early 1990s due to civil war and an embargo against South African products. There is now
an intense rivalry between Durban and Maputo for shipping business.
East London
East London is a city on the southeast coast of South Africa, situated in the Eastern Cape
Province at 32.97°S and 27.87°E.[1]. The city is situated on the Indian Ocean coast, between
the Buffalo River, and the Nahoon River, and is the country's only river port. East London
today has a population of 250,000, with over 700,000 in the metropolitan area.
The existing port, in the mouth of the Buffalo River, adjoining the Indian Ocean, has been
operating since 1870. Enormous investment in recent years, by corporations such as Daimler
Chrysler, has resulted in the harbour being developed to include a new car terminal.
Port Elizabeth
Port Elizabeth is a city in South Africa, situated in the Eastern Cape Province, 770km east of
Cape Town. The city, often shortened to PE, and nicknamed "The Friendly City" or "The
Windy City", stretches for 16km along Algoa Bay, and is one of the major seaports in South
Africa.
The Port Elizabeth harbour, waterfront and city centre are in the process of being upgraded
before the 2010 Football World Cup, and are expected to rival the popular Cape Town
waterfront. The city is one of the venues for World Cup games, and many more visitors are
expected. To this end, there are calls for Port Elizabeth Airport to be upgraded, to ease the
journey time and effort both for World Cup teams and spectators, and also more generally
for tourists.
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Home of South Africa's motor vehicle industry, Port Elizabeth and Uitenhage host General
Motors, Volkswagen, Ford, Continental Tyres and many more automotive companies. Most
other industries in the NMMM arRe IgeSaKredMtowAards the motor vehicle industry, providing
parts such as wiring harnesses, catalytic converters, batteries and tyres to the vehicle
manufacturers.
Port Elizabeth is also a major seaport, with the most significant ore loading facilities in the
southern hemisphere. As part of the ongoing development, a new Industrial Development
Zone with expanded port facilities is being built at Coega.
Cape Town
Cape Town is the second most populous city in South Africa, forming part of the
metropolitan municipality of the City of Cape Town. It is the provincial capital of the Western
Cape, as well as the legislative capital of South Africa, where the National Parliament and
many government offices are located.
Cape Town is famous for its harbour as well as its natural setting in the Cape floral kingdom,
including such well-known landmarks as Table Mountain and Cape Point. Cape Town is one
of the most popular South African destinations for tourism.
Cape Town has a long tradition as a port city. The Port of Cape Town, the city's main port, is
located in Table Bay directly to the north of the central business district. The port is a hub
for ships in the southern Atlantic: it is located along one of the busiest shipping corridors in
the world. It is also a busy container port, second in South Africa only to Durban. In 2004, it
handled 3,161 ships and 9.2 million metric tons of cargo.
Simon's Town Harbour on the False Bay coast of the Cape Peninsula is the main base of the
South African Navy.
Much of the produce produced in the Western Cape is handled through the Port of Cape
Town or Cape Town International Airport. Most major shipbuilding companies have offices
and manufacturing locations in Cape Town
Saldanha Bay
The Port of Saldanha Bay, South Africa's largest natural anchorage and port with the
deepest water is 60 nautical miles northwest of Cape Town.
Situated at Longitude 17º 58' E and Latitude 33º 02' S, Saldanha Bay is partly protected by a
3.1km long artificial breakwater.
The Dutch explorer Van Spilbergen visited Saldanha Bay in 1601, and probably only the lack
of fresh water prevented this otherwise excellent natural harbour from becoming the major
port along the south coast of Africa instead of Cape Town.
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The port developed into a modern harbour only recently, when it became necessary to
facilitate the export of iron ore from the Northern Cape. This required the construction of a
railway more than 800km to the mRinIeSs aKt SisMhenAin the Northern Cape and the construction
of a deepwater jetty in Saldanha Bay to accommodate the Capesize ore carriers.
The first deliveries of iron ore were exported on the vessel Fern Sea during September 1976
and since then about 400 million tonnes of iron ore has been handled at the Saldanha Bulk
Terminal.
Other African Ports
Lagos, Nigeria
The city of Lagos lies in south-western Nigeria, on the Atlantic coast in the Gulf of Guinea,
west of the Niger River delta, located on longitude 3° 24' E and latitude 6° 27' N.
Lagos is the most populous conurbation in Nigeria with 7,937,932 inhabitants at the 2006
census. It is currently the second most populous city in Africa, and currently estimated to be
the second fastest growing city in Africa (7th fastest in the world), immediately following
Bamako. Formerly the capital of Nigeria, Lagos is a huge metropolis which originated on
islands separated by creeks, such as Lagos Island, that fringe the southwest mouth of Lagos
Lagoon, protected from the Atlantic Ocean by long sand spits such as Bar Beach which
stretch up to 100 km east and west of the mouth.
From the beginning, Lagos has spread on the mainland west of the lagoon and the
conurbation, including Ikeja and Agege, now reaches more than 40 km north-west of Lagos
Island. The city is the economic and financial capital of Nigeria.
The port handles imports of consumer goods, foodstuffs, motor vehicles, machinery, and
industrial raw materials. Its export trade in timber and agricultural products such as cacao
and groundnuts has declined since the early 1970s, although the port has seen growing
amounts of crude oil exported, with export figures rising between 1997 and 2000. Oil and
petroleum products provide 20% of GDP and 95% of foreign exchange earnings in Nigeria as
a whole.
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Dar es Salaam, Tanzania
Dar es Salaam [translation: "house of peace"], is the largest city in Tanzania. It is also the
country's richest city and a regionally important economic centre. Dar es Salaam is actually
an administrative province within Tanzania, and consists of three local government areas or
administrative districts: Kinondoni to the north, Ilala in the centre of the region, and Temeke
to the south. The Dar es Salaam Region had a population of 2,497,940 as of the official 2002
census. Though Dar es Salaam lost its official status as capital city to Dodoma in 1964, it
remains the centre of the permanent central government bureaucracy and continues to
serve as the capital for the surrounding Dar es Salaam Region. The city also hosted a leg of
the 2008 Olympic Torch Relay.
TANZADNaIAr es Salaam
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Location of Dar es Salaam
Located on a natural ahsaarlbl oouf rthoeRncIotSuhneKtrIyn'MsdimanAainOrcaeialwn,ayist is the hub of the Tanzanian
transportation system and several highways originate
in or near the city.
Luanda, Angola
Luanda (formerly called Loanda) is the capital and largest city of Angola. Located on Angola's
coast with the Atlantic Ocean, Luanda is both Angola's chief seaport and administrative
centre and has a population of approximately 4.8 million (2007). It is also the capital city of
Luanda Province. Luanda is located at 8°50'18" South, 13°14'4" East (-8.83833, 13.23444).
The city is currently undergoing a major reconstruction, with many large developments
taking place that will alter the cityscape significantly.
Luanda
ANGOLA
Location of Luanda, Angola
Luanda has an excellent natural harbour; the chief exports are petroleum products, coffee,
cotton, sugar, diamonds, iron, and salt.
Walvis Bay, Namibia
Walvis Bay is a port in Namibia and the bay on which it lies.
The bay has been a haven for sea vessels because of its natural deep-water harbour,
protected by the Pelican Point sand spit. Being rich in plankton and marine life, these waters
drew large numbers of whales attracting whalers and fishing vessels. The Dutch referred to
it as Walvisch Bay and the English as Whale Bay, and in its eventual proclamation it came to
be called Walfish Bay, and eventually Walvis Bay. A succession of colonists developed the
location and resources of this strategic harbour settlement. The harbour's value in relation
to the sea route around the Cape of Good Hope had caught the attention of world powers
since it was discovered.
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This explains the complicated political status of Walvis Bay down the years.
TtoheWtionwdhnoiseks,itaunadteodninthteheB2Kuroisaedb.RrivIeSr dKeltaManAd lies at the end of the TransNamib Railway
Walvis NAMIBIA
Bay
Location of Walvis Bay, Namibia
Maputo, Mozambique,
Maputo, formerly Lourenço Marques, is the capital and largest city of Mozambique. A port
on the Indian Ocean, its economy is centred around the harbour. It has an official population
of approximately 1,244,227 (2006), but the actual population is estimated to be much higher
because of slums and other unofficial settlements. Coal, cotton, sugar, chromite, sisal,
copra, and hardwood are the chief exports. The city manufactures cement, pottery,
furniture, shoes, and rubber.
There is also a large aluminium smelting plant, Mozal.
Maputo is located on the west side of Maputo Bay, at the mouth of the Tembe River. The
bay is 95 km long and 30 km wide. The Maputo River empties into the southern end of the
bay.
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RISK MA
MALAWI
SOUTH AFRICA
SWAZI. Maputo
Location of Maputo, Mozambique in relation to adjoining countries
Ports in North America
Montreal, Canada
Montreal, or Montréal, is the largest city in the Canadian province of Quebec and the
second-largest city in Canada. Montreal was the largest city in Canada up until the 1970s,
when it was surpassed in size by Toronto.
The Port of Montreal is the largest inland port in the world handling 26 million tonnes of
cargo annually.[46] As one of the most important ports in Canada, it remains a trans-
shipment point for grain, sugar, petroleum products, machinery, and consumer goods. For
this reason, Montreal is the railway hub of Canada and has always been an extremely
important rail city; it is home to the headquarters of the Canadian National Railway,[47] and
was home to the headquarters of the Canadian Pacific Railway until 1995.
From a freight forwarder’s point of view it is worth noting that Montreal also hosts the
headquarters of the International Civil Aviation Organization (ICAO, a United Nations body)
and the International Air Transport Association (IATA).
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Montreal
Location of Montreal, Quebec in Canada
New York, USA East Coast
New York City (officially The City of New York) is the most populous city in the United States.
The New York metropolitan area ranks among the world's most populous urban areas. It is
a leading global city, exerting a powerful influence over worldwide commerce, finance,
culture, and entertainment. The city is also an important centre for international affairs,
hosting the United Nations headquarters.
New York City is located in the Northeastern United States, in southeastern New York State,
approximately halfway between Washington, D.C. and Boston.[34], the location at the
mouth of the Hudson River, which feeds into a naturally sheltered harbor and then into the
Atlantic Ocean, has helped the city grow in significance as a trading city.
Much of New York is built on the three islands of Manhattan, Staten Island, and Long Island,
making land scarce and encouraging a high population density.
The Hudson River flows through the Hudson Valley into New York Bay. Between New York
City and Troy, New York, the river is an estuary.] The Hudson separates the city from New
Jersey. The East River, actually a tidal strait, flows from Long Island Sound and separates the
Bronx and Manhattan from Long Island. The Harlem River, another tidal strait between the
East and Hudson Rivers, separates Manhattan from the Bronx.
The city consists of five boroughs: The Bronx, Brooklyn, Manhattan, Queens, and Staten
Island. It is the most densely populated major city in the United States, with an estimated
8,274,527 people occupying just under 305 square miles (790 km2).
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The New York metropolitan area's population is also the nation's highest, estimated at
19,750,000 people over 6,720 square miles (17,400 km2) in three states.[
The city is sometimes referred toRasI"SThKe CMity Athat Never Sleeps" due to its extensive 24-
hour subway system and constant bustling of traffic and people, while other nicknames
include Gotham and the Big Apple
The Port of New York/New Jersey is the largest port complex on the East Coast of North
America and is located at the hub of the most concentrated and affluent consumer market
in the world, with immediate access to the most extensive interstate highway and rail
networks in the region. In addition, The Port Authority directly oversees the operation of
seven cargo terminals in the New York-New Jersey region.
In 2007, the Port of New York and New Jersey set a new cargo record, handling some 5.3
million loaded and unloaded 20-foot equivalent units (TEU’s). The Port of New York and New
Jersey is planning $2 billion in seaport investments over the next 10 years so that the Port is
better equipped to handle projected growth. Loaded containerized cargo volumes in the
Port of New York and New Jersey rose 7.6 percent in 2007 to a new record high, led by
continued growth in trade with the Far East and Southeast Asia. The dollar value of all cargo
moved through the port in 2007 exceeded $166 billion.
In addition, ExpressRail, the Port Authority’s on-dock rail terminals in New Jersey and New
York, set a new record in 2007, handling 358,043 cargo containers, an increase of almost
20,000 over the previous record of 338,884 in 2006.
New York
City
Location of New York City within New York State
San Francisco, USA West Coast
The City and County of San Francisco is the fourth most populous city in California and the
13th most populous city in the United States, with a 2007 estimated population of 799,183.
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Among the most densely populated cities in the country, San Francisco lies within a
metropolitan area of 4.2 million people, though, as part of the larger San Francisco Bay Area,
anchors a region of more than 7 mRilIliSonK. ThMe cAity is located at the tip of the San Francisco
Peninsula, with the Pacific Ocean to the west, San Francisco Bay to the east, and the Golden
Gate to the north.
The Port of San Francisco lies on the western edge of the San Francisco Bay near the Golden
Gate. It has been called one of the three great natural harbors in the world. With limited
ability to expand physically as a result of environmentalist opposition to further reclamation
and the soaring cost of real estate in San Francisco, the Port of San Francisco has instead
become a niche player, specializing in break bulk and dry bulk cargo, ship repair, and ferry
services.
San
Francis
co
Location of San Francisco within California State
Houston, USA Gulf
Houston is the fourth-largest city in the United States of America and the largest city within
the state of Texas. As of the 2006 U.S. Census estimate, the city has a population of
2.2 million within an area of 1,600 km². Houston is the seat of Harris County and the
economic centre of the Houston–Sugar Land–Baytown metropolitan area—the sixth-largest
metropolitan area in the U.S. with a population of 5.6 million.
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Houston is recognized worldwide for its energy industry — particularly for oil and natural
gas — as well as for biomedical research and aeronautics. The ship channel is also a large
part of Houston's economic base.RISK MA
The Port of Houston ranks first in the United States in international waterborne tonnage
handled and second in total cargo tonnage handled.
TEXAS
HOU
STON
HOUS
TON
Location of Houston within the State of Texas
Rio de Janeiro, Brazil, South America
Rio de Janeiro ("River of January), is the second largest city of Brazil, behind São Paulo, and
the third largest city in South America, behind São Paulo and Buenos Aires. The city is capital
of the state of Rio de Janeiro.
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RISK MA
BRAZIL
Rio de Janeiro
Location of Rio de Janeiro in Brazil
Ports of each country in the European Union
Not every country or territory in the European Union has direct access to the sea (some of
them are landlocked. The attached table shows each country/ territory and the international
ports which serve it. After that each of the ports mentioned will be located.
Name of country with flag International Port(s)
Åland (Finland) Helsinki
Albania Trieste
Andorra Barcelona
Austria Trieste
Armenia Istanbul, Kuwait
Azerbaijan Istanbul, Kuwait
Belarus Gdansk
Belgium Zeebrugge, Antwerp
Bosnia and Herzegovina Trieste
Bulgaria Istanbul
Croatia Trieste
Cyprus Nicosia
Czech Republic Hamburg, Bremerhaven
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Denmark Copenhagen
Estonia TaRllinInS, SKt. PMeterAsburg, Helsinki
Faroe Islands (Denmark) Copenhagen
Finland Helsinki
France Le Havre, Marseilles (Fos)
Georgia Istanbul, Kuwait
Germany Hamburg, Bremerhaven
Gibraltar (UK) Gibraltar
Greece Athens
Guernsey St. Peter Port
Hungary Trieste, Gdansk
Iceland Reykjavík
Ireland Dublin
Isle of Man Douglas
Italy Trieste, Genoa, Livorno
Jersey Saint Helier
Kazakhstan Istanbul, Kuwait, Odessa
Kosovo Trieste
Latvia Riga
Liechtenstein Trieste, Genoa
Lithuania Trieste
Luxembourg Antwerp, Zeebrugge
Macedonia Athens, Istanbul
Malta Valletta
Moldova Istanbul
Monaco Marseilles (Fos)
Montenegro Trieste
Netherlands Rotterdam, Amsterdam
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Norway Oslo
Poland GdRanIsSk K MA
Portugal
Lisbon
Romania Istanbul
Russia Arkhangelsk, St. Petersburg, Vladivostok
San Marino Genoa, Trieste
Serbia (including Genoa, Trieste
Kosovo)
Slovakia Genoa, Trieste
Slovenia Genoa, Trieste
Spain Barcelona
Svalbard and Jan Copenhagen
Mayen Islands (Norway)
Sweden Stockholm
Switzerland Livorno, Hamburg, Rotterdam
Turkey Istanbul
Ukraine Istanbul
United Kingdom Felixstowe
Vatican City Genoa, Trieste, Livorno
Locations of European Ports
Ports of Russia
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Map of Russia showing the locations of Saint Petersburg, Arkhangelsk and Vladivostok
Ports of Scandinavia RISK MA
Map of Scandinavia showing the locations of Copenhagen Helsinki, Oslo and Stockholm. The
inset is a map of Iceland, showing the location of Reykjavik. Also shown are St Petersburg,
Riga, and Gdansk.
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Ports of Central Europe
RISK MA
Felixstowe Hamburg
Rotterdam AmsterdamBremerhaven
Zeebrugge Antwerp
Le Havre
Trieste
Genoa
Marseilles Livorno
(Fos)
Barcelona
Locations of the main ports of Central Europe and Mediterranean
Ports of Spain and Portugal
Lisbon Barcelona
Gibraltar
Locations of Barcelona, Gibraltar and Lisbon
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Ports of the Eastern Mediterranean and the Black Sea
RISK MA
Odessa
Trieste Istanbul
MarseilleGs enLoiavorno
Barcelona (Fos) Athens Nicosia
Valetta
Locations of Eastern Mediterranean and Black Sea Ports
Ports in Ireland and Iceland
This map shows the localities of Amsterdam, Rotterdam, Dublin and Reykjavik
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Douglas, Isle of Man
RISK MA
Douglas
ISLE OF
MAN
United Kingdom, showing the Isle of Man in red, and the port of Douglas, which is situated
in the centre of the East Coast of the Isle of Man
St. Helier, Jersey Island
St. Helier
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Map showing the locality of Jersey Island and the port of St. Helier, on the South Cast of the
island
St. Peter Port, Guernsey RISK MA
St Peter Port
Map showing the locality of Guernsey island and the port of St. Peter, on the East Cast of the
island
Location of Kuwait
Location of Kuwait, in the Persian Gulf. The port serves East European countries such as
Kazakhstan, Uzbekistan and Turkmenistan
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Ports in the Middle East RISK MA
The Persian Gulf
Map of the Persian Gulf showing the main ports. Note the locations of Bandar Abbes,
Khoromshar, and Dubai (Dubayy)
Ports of Saudi Arabia
Saudi Arabia, showing main ports
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Saudi Arabia has three primary oil export terminals:
1la)rTgheestRoafsfsThaonreuroailclooamdpinlegxfahcailsitaypR. IptrIionSxcilKmudaetMesltyhAe6 2m.5il-lmioinlliobnblb/dbl/cdappaocrittiaetsR; aasnTdatnhueraw. oMroldr'es
than 75 percent of exports are loaded at Ras Tanura Facility.
2)The 3 to 3.6-million bbl/d Ras al-Ju'aymah facility on the Persian Gulf.
3)The Yanbu’ terminal on the Red Sea, from which most of the remaining quarter is
exported, has loading capacity of approximately 4.5 million bbl/d crudes and 2 million bbl/d
for NGL and products. The facility is reportedly not used to full capacity.
These and a dozen other smaller terminals throughout the country, appear capable of
exporting a 14-15 million bbl/d of crude and refined products, around four million bbl/d
higher than Saudi Arabia’s current crude oil production capacity.
India
The ports of India
Political map of India. Follow the links to the ports of Vishakhapatnam, Cochin ,Kolkata Port,
Chennai Port and Kandla carrying the greatest tonnage. These major ports can collectively
handle 400+ million tons of cargo annually.
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The ports of Malaysia,
RISK MA
Ports of Malaysia
There are two distinct parts of Malaysia, separated from each other by the South China Sea,
namely East Malaysia (on the Malaysian Peninsula) and West Malaysia (on the island of
Borneo). The major ports are Port Klang and Port of Tanjung Pelepas in Johor. Other
important ports can be found in Tanjung Kidurong, Kota Kinabalu, Kuching, Kuantan, Pasir
Gudang, Penang, Miri, Sandakan and Tawau.
Port of Singapore
Singa
pore
Singapore is a city state located on the southern tip of the Malaysian Peninsula
Ports of China,
Key to the maps showing localities of the ports of China shown below
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RISK MA
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RISK MA
Ports of Japan
Map of Japan showing the main ports. Note particularly the localities of Yokohama, Nagoya,
Kobe and Fukuoka
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Ports of Australia
RISK MA
Map of Australia. Note the locations of Perth, Adelaide Melbourne, Hobart (Tasmania), and
Sydney.
Ports of New Zealand
Map of New Zealand. Note the respective locations of the ports of Auckland, Wellington and
Dunedin
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2.4. Geographical locations of major airports are identified on a world map
(Major airports may include but eaRarechInSootfKNlimigMieteridaA,tToatnhzeanSioau, tAhnAgforliac,anNainmteibrinaa, tMioonzaalmaibrpiqourets,
and one international airport in
Canada, USA, South America, each country in the European Union, Middle East, India,
Malaysia, Singapore, China, Australia and New Zealand)
With very few exceptions, each of the ports located in the previous section are international
airports. It is however important to note that many countries of the European Union are
either landlocked or do not have their own international sea ports and are therefore reliant
on other countries to provide such facilities. However, in almost all cases they have their
own international airports.
Accordingly, the list of such European Union countries is shown below, their main
international airports named and the coordinates of each city given. After that there is a
map showing the location of these airports.
Please also note that countries, especially larger ones like United States, Canada, Brazil,
Germany, France, India, China and Australia have many more international airports than
they do seaports. In South Africa, the opposite is true. We have three international airports-
Johannesburg, Durban and Cape Town but we have 6 international sea ports.
For more details on international airports (including their three letter codes), the IATA
publication known as TACT (The Air Cargo Tariff) contains comprehensive information.
Name of country with flag International Port(s) Location Coordinates
Andorra Barcelona 41°23′N 2°11′E
Austria Vienna 48°12′31.5″N 16°22′21.3″E
Armenia Yerevan 40°11′N 44°31′E
Azerbaijan Baku 40°23′43″N 49°52′56″E
Belarus Minsk 53°54′N 27°34′E
Bulgaria Sofia 42°42′N 23°20′E
Croatia Zagreb 45°49′0″N 15°59′0″E
Czech Republic Prague 50°05′N 14°25′E
Georgia Tbilisi 41°43′0″N 44°47′0″E
Hungary Budapest 47°28′19″N 19°03′01″E
Kazakhstan Astana 51°10′0″N 71°26′0″E
Kosovo Pristina 42°40′N 21°10′E
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Latvia Riga 56°58’0″N, 24 8′0″
Liechtenstein ZuRricIhSK MA 47°22′0″N, 8°33′0″E
Lithuania 47°22′0″N, 8°33′0″E
Zurich
Luxembourg Luxembourg, Brussels 49°36’0″N, 6 7′0″E and
50°50′48″N 4°21′9″E
Macedonia Skopje 42°0′N 21°26′E
Moldova Chişinău 47°0′00″N 28°55′00″E
Monaco Paris 48°52’0″N 2°19′59″E
Montenegro Podgorica 42°28’12″N 19°16′48″E
Romania Bucharest 44°25’57″N 26°6′14″E
San Marino Rome 41°54’N 12°30′E
Serbia (including Belgrade 44°49’14″N 20°27′44″E
Kosovo)
Slovakia Bratislava 48°08’41″N 17°06′46″E
Slovenia Ljubljana 46°3’5″N 14°30′20″E
Switzerland Zurich 47°22′0″N, 8°33′0″E
Ukraine Kiev 50°27’00″N 30°31′24″E
Vatican City Rome 41°54’N 12°30′E
Europe, showing the locations of international airports and main cities in each country
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3. EXPLAIN THE IMPORTANCE OF GEOGRAPHICAL ASPECTS ON INTERNATIONAL TRADE
RISK MA
3.1. The importance of socio-political structures is explained in the context of effective
communication between trading partners
What are socio political structures?
Socio political structures can be said to be the structures which hold societies together.
The notion of social structure as relationships between different entities or groups or as
enduring and relatively stable patterns of relationship emphasises the idea that society is
grouped into structurally related groups or sets of roles, with different functions, meanings
or purposes. One example of social structure is the idea of "social stratification", which
refers to the idea that society is separated into different strata, according to social
distinctions such as a race, class, disability and gender. Social treatment of persons within
various social structures can be understood as related to their relative positions within the
structure. For instance, women are treated very differently in different social structures.
The political structure of a country is, in a sense, defined by its social structure. For example,
a strongly patriarchal social structure in which men are seen as rulers within the home and
society will have political structures which reflect this, whereas in those societies in which
women have a more equal status in society will have this reflected in laws which forbid
discrimination against women. The treatment of women by society is however not the only
factor which will influence the political structure of a country- the treatment of people of
different classes, races and religions by society are all reflected in the political structure of
a country.
The term political structure, used in a general sense, refers to institutions or groups and
their relations to each other, their patterns of interaction within political systems and to
political regulations, laws and the norms present in political systems in such a way that they
constitute the political landscape of the political entity. Examples of political structures are
democracies, in which the people are ruled by those whom they have elected to do so and
dictatorships, in which countries are ruled by those who have come to power by means
other than the vote of the people (by inheriting the power or by overthrowing the elected
government, for instance).
In the context of international trade, we would define trading partners as countries which
trade either goods or services with one another. The term can also used, to describe a
trading relationship between businesses.
The importance of socio political structures in effective communication between trading
partners
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Societies all have some form of structure. Some may be very open and informal in which
there is a great deal of equality between members of the society and others may be very
formally structured in which eachRinIdSiviKduaMl haAs his or her strictly defined position, which
will circumscribe the actions of that person very severely.
In the same way, the political structure of a country may be very conducive to doing business
in the sense that regulation is kept to a minimum and the regulatory structure is very
efficient and user friendly. By contrast, other countries may be politically structured so that
regulations make it very difficult to do business and the inefficiency of the bureaucratic
structure is such as to create even more difficulties.
It is therefore clear that the way in which society operates and the political structure under
which a country is governed will have major implications on the way in which the country
carries out its international trade and the ways in which its people communicate with one
another and their international trading partners.
As freight forwarders, it is very important to establish the type of socio political structure
with which we are dealing before attempting to communicating with a new trading partner.
By being aware of, and sensitive to, the socio-political structures under which our trading
partners operate we are able to make a great deal of sense of the reasons for the way in
which they carry out their operations and we are able to structure our communications to
ensure that these are as effective as possible at all times.
3.2. The need for the understanding of and sensitivity to different religious, cultural and value
systems is explained in the context of handling diversity in international trade
The international nature of the freight forwarding profession means that those who are
successful are those who thrive in an environment which is characterised by diversity.
When people think of diversity, they may think first of ethnicity, race and language, and then
gender; however, diversity is much broader than that. Diversity is otherness or those human
qualities that are different from our own and outside the groups to which we belong, yet
present in other individuals and groups. Dimensions of diversity include, but are not limited
to: age, ethnicity, ancestry, gender, physical abilities/qualities, race, sexual orientation,
educational background, geographic location, income, marital status, military experience,
religious beliefs, parental status, and work experience.
Successful international forwarding is all about harnessing these differences in achieving the
objective of having the right cargo delivered at the right place at the right time at the most
economic cost.
Effective businesses embrace diversity as a strong element of success because managing
diversity well provides a distinct advantage in an era when flexibility and creativity are keys
to competitiveness. Managing diversity means acknowledging people's differences and
recognizing these differences as valuable.
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Most people believe in the golden rule: treat others as you want to be treated. The implicit
assumption is that how you want to be treated is how others want to be treated. But when
you look at this proverb through aRdivIeSrsKity pMersApective, you begin to ask the question: what
does respect look like; does it look the same for everyone? Does it mean saying hello in the
morning, or leaving someone alone, or making eye contact when you speak?
It depends on the individual. We may share similar values, such as respect or need for
recognition, but how we show those values through behaviour may be different for different
cultures. How do we know what different cultures need? Instead of using the golden rule,
the successful international forwarder will rather use the platinum rule which states: "treat
others as they want to be treated." Moving our frame of reference from an ethnocentric
view ("our way is the best way") to a culturally relative perspective ("let's take the best of a
variety of ways") will help us to manage more effectively in an international work
environment.
Ignoring diversity issues costs time, money, and efficiency. In the freight forwarding
environment this can result in the souring of relationships between ourselves and our
overseas partners and, in worst can scenarios, can also result in loss of business.
3.3. The effects of climatic conditions on cargo flows and constraints on international transport
are explained in the context of international trade
In considering this aspect we need to look at two things, weather disasters and seasonal
climatic phenomena. They are not necessarily mutually exclusive. For example, in the South
Central and South West states of the USA cyclones and tornadoes have a good probability
of occurring between the beginning and June and the end of November each year.
Tornadoes and hurricanes may therefore be considered to be seasonal phenomena.
However, what is important to all concerned is the intensity and area covered by each
tornado and hurricane, where each tornado and hurricane can be regarded as a weather
disaster.
In addition to tornadoes and hurricanes, other weather disasters which affect cargo flows
and constrain international transport are cyclones, dust storms (found in countries
bordering deserts, especially those countries to the East and North East of the Sahara Desert
in North Africa) floods and landslides.
Seasonal climatic phenomena which affect shipping and cargo movements are monsoons
and the freezing of waterways during winter.
Monsoons
Every summer, southern Asia and especially India, is drenched by rain that comes from moist
air masses that moves in from the Indian Ocean to the south. These rains, and the air masses
that bring them, are known as monsoons.
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However, the term monsoon refers not only to the summer rains but to the entire cycle that
consists of both summer moist onshore winds and rain from the south as well as the offshore
dry winter winds that blow from tRheIcSonKtineMnt Ato the Indian Ocean.
The Arabic word for season, mawsin, is the origin of the word monsoon due to their annual
appearance. Although the precise cause of the monsoons is not fully understood, no one
disputes that air pressure is one of the primary factors. In the summer, a high-pressure area
lies over the Indian Ocean while a low exists over the Asian continent. The air masses move
from the high pressure over the ocean to the low over the continent, bringing moisture-
laden air to south Asia.
During winter, the process is reversed and a low, sits over the Indian Ocean while a high lies
over the Tibetan plateau so air flows down the Himalaya and south to the ocean. The
migration of trade winds and westerlies also contributes to the monsoons.
Smaller monsoons take place in equatorial Africa, northern Australia, and, to a lesser extent,
in the southwestern United States.
Almost half of the world's population lives in areas affected by the monsoons of Asia and
most of these people are subsistence farmers, so the coming and goings of the monsoon are
vital to their livelihood to grow food to feed themselves. Too much or two little rain from
the monsoon can mean disaster in the form of famine or flood.
The wet monsoons, which begin almost suddenly in June, are especially important to India,
Bangladesh, and Myanmar (Burma). They are responsible for almost 90 percent of India's
water supply. The rains usually last until September.
Freezing of Northern Hemisphere waterways
Much of the Arctic Sea and the North Sea can be frozen during the Northern Hemisphere
winters, as can the St. Lawrence Seaway and the Great Lakes.
Depending on the severity of the weather in any particular winter, any waterways can be
frozen a far south as the Tropic of Cancer.
It is therefore important when forwarding goods to the Northern Hemisphere during their
Winters (say December to March) to establish whether those waterways used for the
routeing of cargo during other months of the year are in fact still navigable.
3.4. The importance of identifying the different currencies used in international transactions is
explained in the context of freight forwarding operations
An introduction to foreign exchange
In the pre-currency age people simply exchanged merchandise for merchandise. For
example, if a baker wanted two bottles of milk he and the farmer would have to agree upon
how many loaves were equivalent to one bottle of milk in lieu of a means of equal value.
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Commodities that were highly sought after were often normalised and accepted by a group
of people to function in the same way as a currency would. The agreed commodities would
circulate as an element of trade, soRthIaSt iKndivMiduAals could purchase other products that were
valued in terms of these particular items. Examples include: coffee, salt, sugar, tobacco,
cloth, cocoa, and livestock.
However, the inconvenience involved - trading with others who did not share the same
standardised commodity, transporting it and the short shelf life of fresh foods - saw the
need for a coinage system as a medium of exchange.
The first coins resembling those of today, are said to have appeared around the 7th Century
BC. The coins were made out of round shapes of metal in Anatolia in what is now the west
coast of Turkey. Over the course of time coins begun to incorporate impressions and designs
that represented the cultural groups that used them. When major economies began to
develop, gold, silver, copper, and other metals were used to make coins.
The coins' weight often symbolised its value. Gold coins were often worth more and were
used for larger purchases by kings and state officials. Silver was used for larger common
transactions such as taxes and copper and other metals were used for everyday common
transactions. This system was used in ancient India and throughout much of Europe during
the medieval period. Only until the last century, did coins come to be accepted for their
extrinsic value versus their metal content value.
The history of paper money begins in the Middle-Ages when goldsmiths would deliver
receipts as a form of payment to a person trading in gold or silver. These receipts would
then change hands, until one wished to claim the initial payment. In 17th century Sweden,
paper money represented that the owner was able to back the amount stated on his paper.
However, there was always the concern that the issuing authority did not possess sufficient
money to back up the note or that it was a forgery. Thus, major countries developed their
own central banking and minting system to print money and hold coins, while the national
treasury held gold and silver stock.
Countries would later add their own emblems, designs and values to their national
currencies. A country's money had unique physical characteristics, making it not only stand
out from other currencies, but representative of its culture and individual economy. Today,
national banks, governments, and legislations control the printing and policies of the nation
state's legal tender.
It is thus clear that different countries have different currencies. In order to be able to trade
between one another it then becomes necessary to establish rates of exchange between
each currency.
The exchange rate expresses the national currency's quotation in respect to foreign ones.
For example, if one US dollar is worth 10 000 Japanese Yen, then the exchange rate of dollar
is 10 000 Yen.
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If something costs 30 000 Yen, it automatically costs 3 US dollars as a matter of accountancy.
Going on with fictitious numbers, a Japan GDP of 8 million Yen would then be worth 800
Dollars. RISK MA
Thus, the exchange rate is a conversion factor, a multiplier or a ratio, depending on the
direction of conversion.
Depending on a number of different factors, the exchange rates of different currencies
fluctuate against one another all the time, on an hourly basis.
Major world currencies
You will have noted that in national news bulletins the exchange rate of the Rand is quoted
against the US Dollar, British Pound and the Euro. Why these three currencies?
The dollar is considered the standard unit of currency in commodity markets across the
globe (for example gold and oil and many other commodities). As of April 2004, nearly $700
billion was in circulation, with an estimated half to two-thirds of it still being held overseas.
The U.S. Dollar served the world well as its one reserve currency. Trade could be priced in
one currency: “I’ll sell it to you at US$159 CIF per ton.” Shipping costs could be in one
currency. Currencies would have a common dominator—the dollar—to determine its
relative worth. And, perhaps most importantly, the industrial commodity—oil—was priced
in dollars. Besides the advantages of commodity pricing in dollars, as long as the U.S. wasn’t
in disarray it could be a safe place to “stash your cash” as one New York private banker once
said.
It is clear that the US Dollar is used as the world’s trading currency. In South Africa’s case,
however we do much of our trade with Europe and hence the interest of South African
business people in the fluctuations of the Rand against the two European currencies, the
Euro and the British Pound (also known as the Pound Sterling).
The importance of identifying different currencies to the freight forwarder
By using the link http://www.jhall.demon.co.uk/currency/by_country.html it is possible to
see for example how many different countries of the world name their currencies dollars,
francs or pounds. None of the currencies called a dollar (US Dollar, Australian Dollar,
Zimbabwe Dollar) need to be related to one another and their exchange rates to the Rand
(or any other currency) will be completely different and will also fluctuate completely
differently.
The consequences of not identifying a currency correctly are that the wrong exchange rate
will be used to convert the currency into local currency, resulting in substantial over or under
payments to one of the parties involved, consequent losses to one of the parties and general
dissatisfaction all round.
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Thus, whilst it is true that world trade is for the most part conducted in a restricted number
of major currencies (US Dollar, Euro, Japanese Yen), there is no rule which says that this
should be the case for all transactRionIsS. K MA
Added to this is the fact that different aspects of a single international trade transaction may
be expressed in different currencies: the goods may be priced in one currency, the cost of
transporting them from point of origin to port of loading in another, the freight from country
of origin to country of destination in another and the cost of finally clearing and delivering
them in the country of destination in yet another.
With these considerations in mind in mind it is important for the freight forwarder to:
• Carefully scrutinise all documentation, identify all foreign currencies correctly and
where there is uncertainty seek clarity
• Ensure that any rates of exchange used are the correct ones for the particular
transaction
4. EXPLAIN TRADE ROUTES
4.1. South Africa`s major trade routes are identified on a map
A trade route is a logistical network identified as a series of pathways and stoppages used
for the commercial transport of cargo. Allowing goods to reach distant markets, a single
trade route contains long distance arteries which may further be connected to several
smaller networks of commercial and non commercial transportation.
Historically, the period from 1532 BCE–1 CE saw the Western Asian, Mediterranean, Chinese
and Indian societies develop major transportation networks for trade. Europe's early trading
routes included the Amber Road, which served as a dependable network for long distance
trade. Maritime trade along the Spice route became prominent during the middle ages;
nations resorted to military means for control of this influential route. During the Middle
Ages organizations such as the Hanseatic League, aimed at protecting interests of the
merchants and trade, also became increasingly prominent.
With the advent of modern times, commercial activity shifted from the major trade routes
of the Old World to newer routes between modern nation states. This activity was
sometimes carried out without traditional protection of trade and under international free
trade agreements, which allowed commercial goods to cross borders with relaxed
restrictions. Innovative transportation of the modern times includes pipeline transport, and
the relatively well known trade using rail routes, automobiles and cargo airlines.
As far as South Africa is concerned, principal international trading partners of this country
consist of the United States, Germany, Japan, United Kingdom, China, Netherlands and
Belgium.
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Accordingly, the trade routes to these countries are shown on the map below.
RISK MA
Africa, showing South Africa’s trade routes with main African trading partners
World map, showing South Africa’s trade routes with main trading partners other than Africa
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4.2. The ways in which trade routes change are explained with examples of varying trade
alliances and commodity fluctuations
Since the 1980’s China, the counRtryIwSitKh thMe wAorld’s highest population has experienced
phenomenal economic growth.
This in turn caused that country’s demands for all of the basic industrial commodities (the
commodities required by most manufacturing industries) These commodities are: oil, coal,
steel, copper, platinum, vanadium and chrome. With the exception of oil, all of these
constitute major South African exports. As a result, there has been a major increase in South
Africa’s trade with China. Many companies that had no dealings with China now find that
their major overseas clients have become Chinese: those who had trading relations with
Chinese companies prior to this period have experienced significant increases in their trade
with their Chinese counterparts. Very much the same is also happening with regard to India.
What effect has this had on the freight forwarding industry?
The freight forwarding industry may be classified as a service industry: that is an industry
comprised of companies that primarily earn revenue through providing intangible products
and services. Service industry companies are involved in retail, transport, distribution, food
services, as well as other service-dominated businesses. By definition a service industry such
as freight forwarding is driven by the activities of others- in this case international traders.
The activities of freight forwarders follow shifts in international trade. Thus many freight
forwarders establishing new agency arrangements in China and India.
Is this not the time to start learning Mandarin and/ or one of the mainstream languages
spoken in India?
4.3. South Africa`s major trading partners are identified in terms of the trade agreements and
groupings which have been established
(Trade agreements and groupings may include but is not limited to Marrakech Agreement,
Southern African Development Community (SADC), South African Customs Union (SACU),
African Growth and Opportunity Act (AGOA), South Africa/European Union Free Trade
agreement, Generalised System of Preferences (GSP), New China Textile Agreement)
The Marrakesh Agreement was an agreement signed in Marrakech, Morocco, in 1994. The
agreement established the World Trade Organization, which came into being upon its entry
into force on January 1, 1995. The Marrakesh Agreement developed out of the General
Agreement on Tariffs and Trade (GATT), which it includes; but it supplemented it with
several other agreements, on such issues as trade in services, sanitary and phytosanitary
measures, trade-related aspects of intellectual property and technical barriers to trade. It
also established a new, more efficient and legally binding means of dispute resolution.
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