As global trade intensifies, international shipping has become more important than ever. We will explore the world of maritime freight in depth and reveal the five busiest maritime routes in the world. These routes are not just a few lines on a map; they involve the transportation of international trade, moving hundreds of billions of dollars of goods every year, and keeping the global economy running.
Whether you are an experienced businessperson or a curious viewer, understanding these routes will give you a deeper economic understanding of how the world works. So, let’s begin this journey!
How can knowing shipping routes help a company?
Knowing shipping routes can help a company in many ways, especially in terms of global trade, supply chain management, and cost control. Specific advantages include
1. Optimizing the supply chain and improving logistics efficiency
- Choosing the most suitable shipping route can reduce shipping time, improve cargo turnover, and reduce inventory costs.
- Understanding the voyage distance, port distribution, and transit time of different shipping routes can help companies develop more efficient logistics plans.
2. Shipping costs
- By comparing the costs of different routes (freight, surcharges, port fees, etc.), companies can choose incremental transport options.
- Anticipate expected price changes, such as fuel prices and peak season surcharges, and formulate cost control measures in advance.
3. Improve supply chain stability and reduce risks
- Understanding route information helps companies predict possible transport risks, such as weather changes, port congestion, political factors, or trade restrictions, and formulate countermeasures in advance.
- By diversifying shipping routes, the risk of supply chain disruption caused by blockage of a certain route can be reduced.
4. Improve market competitiveness
- Timely access to shipping route information helps companies make faster and more reliable delivery commitments in the international market, improving customer satisfaction.
- Companies can optimize pricing strategies based on shipping timeliness and costs, improving market competitiveness.
5. Promote international trade and market expansion
- Understanding the main shipping routes and cargo flows in different regions helps companies identify new market opportunities and partners.
- Understanding international pandemic trends enables companies to formulate more accurate global expansion plans and reduce the risk of making blind decisions.
6. Compliance and policy adaptation
- Tariff policies, tax policies, environmental regulations, etc., may differ in different countries and regions. Understanding route information can help companies prepare for compliance and avoid unnecessary interruptions or additional costs.
In short, a deep understanding of transportation routes can help companies optimize their supply chains, reduce costs, reduce risks, and enhance competitiveness. It is a key link in the management of global trade and logistics.
Asia-Europe shipping route
The Asia-Europe route is the world’s busiest ocean route, with a total length of about 11,000-13,000 nautical miles, usually connecting East Asia and Europe via the Suez Canal.
The main route includes Shanghai-Singapore-Suez Canal-Rotterdam/Hamburg, covering China, South Korea, Singapore, the Netherlands, Germany, the United Kingdom, France and other countries.
The annual shipping volume of this route exceeds 25 million TEU, accounting for about 30% of global seaborne trade. It mainly transports electronic products, mechanical equipment, automobiles, textiles, and chemical products. It is crucial to the global supply chain, and the smooth flow of the Suez Canal directly affects the flow of global trade.
Trans-Pacific Route
The Trans-Pacific route mainly connects Asia with North America and is about 5,000-8,000 nautical miles long. It is the second busiest shipping channel in the world and plays a vital role in the global supply chain and trade. The main voyages of this route include Shanghai/Shenzhen-Los Angeles/Long Beach-New York, and Yokohama-Vancouver-Seattle, covering Asian manufacturing centers such as China, Japan, South Korea, Taiwan, Vietnam, Malaysia, and major consumer markets in North America such as the United States, Canada and Mexico.
The annual transport volume of this route exceeds 30 million TEU, accounting for approximately 35% of global container transport volume. It transports electronic products, home appliances, clothing, auto parts, furniture, toys, machinery and equipment, and other consumer goods with high demand. As Asia is the center of global manufacturing, and North America is one of the world’s largest consumer markets, this route is known as the core transport logistics for “made in Asia, consumed in North America.”
Recently, challenges such as trade difficulties, the impact of the pandemic, port congestion, freight urgency, and rising fuel costs on the Trans-Pacific route have led to fluctuations in shipping prices, continued supply chain stagnation, and reduced efficiency. In addition, in response to these issues, shipping companies are increasing the deployment of ultra-large container vessels (ULCVs), optimizing the network of routes, and looking for alternative unloading points at ports in Mexico and Canada to reduce their reliance on ports in the US West Coast.
Trans-Atlantic Route
The Trans-Atlantic Route connects North America with Europe and is approximately 3,000-4,500 nautical miles long. It is an important trade route between developed countries. The route not only carries a portion of the goods flowing between Europe and the United States but also plays a key role in the global economy, technological cooperation, and supply chain security.
The main shipping routes include New York–Rotterdam–Hamburg and London–Houston, covering countries such as the United States, Canada, the United Kingdom, Germany, the Netherlands, Belgium, France, and Spain. The shipping route has an annual transport volume of about 7.5 million TEU. Although the shipping volume of the route is relatively small, the route is of extremely high strategic value in international trade because most of the freight is high-value-added products.
The main commodities transported include manufactured goods (cars, machinery and equipment, electronic components), luxury goods (branded clothing, watches, goods), pharmaceutical products (vaccines, high-end boutique products), petrochemical products, and agricultural products (wine, dairy products, wheat, soybeans).
Recently, transatlantic routes have been significantly affected by global supply chain adjustments, trade policies, energy price fluctuations, rising inflation costs, and other important factors. In particular, some routes have been adjusted following the UK’s withdrawal from the European Union. Meanwhile, North America and Europe are promoting a more environmentally friendly Arctic route, such as the use of low-sulfur consumption, green ports, and intelligent logistics systems, to improve the continuity of the route.
South America-Europe route
South America-Europe route: The South America-Europe route connects South America and Europe, with a total length of about 4,000-6,500 nautical miles. The main routes include Santos (Brazil)-Lisbon-Rotterdam and Buenos Aires (Argentina)-Hamburg (Germany). The countries involved in this route include Brazil, Argentina, Chile, Spain, Portugal, the Netherlands, and Germany, making it an important trade route between South America and Europe.
The route handles about 600,000 TEUs annually, carrying bulk commodities such as agricultural products (soybeans, coffee, sugar), meat, iron ore, copper ore, and wine. The economies of South America are highly dependent on exports, and this route is not only an important artery for Latin American agricultural and mineral trade but also an important source of supply for the European market to obtain key raw materials and agricultural products.
Intra-Asia Route
The Intra-Asia Route is the world’s most densely populated short-distance route network, covering mainly East Asia, Southeast Asia, and South Asia. It is about 500-4,000 nautical miles long and is characterized by high frequency and short distances. The main routes include Shanghai-Singapore-Jakarta and Hong Kong-Tokyo-Busan, covering China, Japan, South Korea, Taiwan, Singapore, Malaysia, Vietnam, Thailand, India, Southeast Asia, etc.
The annual transport volume of this route exceeds 40 million TEUs, accounting for more than 50% of the world’s total container trade and mainly transporting electronic products, semiconductors, textiles, auto parts, and food. As Asia is the global manufacturing center, this route plays a key role in the supply chain, with ports such as Singapore, Hong Kong, Busan, and Shanghai serving as important transit hubs.
