MARITIME ECONOMICS

Jericho Hyansalem Wicaksono – 5019201004

Resume – Session 3
Trade Advantages
Trade advantages can be defined as advantages of resources
supply for trading that an area or country has. Usually, it
means that if an area, for example Area A, has a better trade
advantage than Area B, it can be concluded that Area A has
better or more amount of the resource. The table shows us
what kind of trade advantages there are and the descriptions.
MDF of an Area
Maritime Dependency Factor (MDF) is a value that
shows us the calculation result or comparation of a
certain area or country dependency level of sea
trading to other mode of trading with different
transportations. Usually, MDF for archipelago
countries is bigger than MDF for continent
countries.
Supply and Demand Factors
Supply and demand are related to each other and
affecting each other. If there is a demand of a thing,
there will be supply for that thing. However, there
are also many external factors affecting the supply
and demand conditions. These external factors can
be categorized as shown in the figure below.

Those factors category can be further explained in the

table above. The table shows the example of each
factors which affecting the supply and the demand.
So, it can be concluded that the supply and demand
movement are dynamic and not constant, because the
factors affecting them are always changing.
Maritime Clusters
Maritime industries has many types, such as shipyard
business, storage business, and many more. These
maritime industries can be categorized or organized as
clusters, depending on the distance and relation between
these different maritime industries or companies in the
same area. A company inside a cluster may be more
developed and improved than a company that has no
relation with its nearby companies. There are many
maritime industry type inside a cluster, some of them
shown in the table below

By making cluster of maritime industries or

companies within the same area, there are many
advantages that can be obtained. These advantages
are shown in figure above.
Maritime Cluster Organization
An organization can be built based on a cluster of maritime
industries. This organization can improve the maritime
industries within the cluster by improving the relation or
network between each other. The main point to be an
organization is to have a same shared value, which in this case is
the products that is handled by these companies or industries.
However, to build an ideal cluster organization, there are factors
that must be taken into account before. The table below shown
us.

There are two types of maritime cluster organization, which

each of them has their own strengths and weaknesses. The
figure shows us the strengths and weaknesess of each type.
Seaborne Trading
Seaborne trade is an activity which depends on the trends of social and economical conditions within the area of
trading. It can be seen that in the early years of 1960 – 1970, business such as shipbuilding and shipowner is
greater or had more success than shipping companies. However, after the year 1970, trading of shipping companies
begin to improve and success. The majority of sea trading are trading commodity internationally and domestically.
The commodity markets has increase over the year. The commodity of sea trading has many type, and the table
shows us the common types.

Also, because of the improvement of sea trading year after year, the
companies or maritime business become much more flexible in terms of
owning and registering ships. Many businesses that uses ships now can
build, register, and own them in different countries. Therefore, sea trading
development also improving other maritime business, especially related to
ship. The figure shows three kinds of business that is influenced by the
growing sea trading maritime transport.
Maritime Transport Chain
Port is an important element for supply chain in maritime transport. Transport chain in maritime shipping can be
varied based on the port users, such as the shipping company or the cargo carriers. These port users can choose a
maritime supply chain or choose the port of destination. The factors for choosing the ideal port for transport chain
can be seen in the figure below..

Other than that, shipping lines also can choose the port for the
transport chain. The table shows us what can be included for
choosing ports by shipping lines. The factors for choosing the ideal
port for transport chain can be seen in the table below.
References
Gurning, Saut. (2021). Case study : Analysis micro-economics of shipping and port of Indonesia 2015 due
to macro-economics down-turn
Gurning, Saut. (2021). Sea-borne trade interaction: Demand and supply formulation
Talley, W. K., & Ng, M. (2013). Maritime transport chain choice by carriers, ports and shippers.
International Journal of Production Economics, 142(2), 311–316.
Valentine, V. F., Benamara, H., & Hoffmann, J. (2013). Maritime transport and international seaborne
trade. Maritime Policy and Management, 40(3), 226–242.
Viederyte, R. (2013). Maritime Cluster Organizations: Enhancing Role of Maritime Industry Development.
Procedia - Social and Behavioral Sciences, 81, 624–631.
THANK YOU