The Starting Line
The Starting Line
How it all starts Trade is basic to shipping. A settlement or country that
produces more than it needs of a commodity will trade it for
something it does not produce. These commodities can be almost
anything: wine or watches, olive oil or crude oil, coal or carpets,
bananas or Boeing aircraft. If it has to cross water, this trade
needs some sort of craft. That craft needs someone to pay for its
building. It must have someone to appoint experienced navigators
and seamen to sail it. Someone must ensure it is repaired if it
gets damaged. Someone must decide what ports it will run between
and make sure there is enough cargo. It needs merchants to be able
to find markets for what the ship carries. From shipowner to shipping company Originally, an individual or a group of individuals took on the
functions listed. Sometimes they banded together as companies, for
instance the East India Company, and were given particular powers
by the government to trade with a certain area. In the early 19th
Century these companies were gradually dissolved as it was felt
their monopolies were not good for the country. Individual
shipowners then became important again. 
 Goods stored in a warehouse at Southampton`s
Western Docks |
As ships became bigger and more expensive - especially with the
advent of steam engines and iron hulls - their cost became too much
for individuals. The shipping business became more complex, too.
More and more commodities were traded. Governments also began to
regulate trade and the shipping industry. Individuals were
concerned about limiting their liability in the event of an
accident to their ship, or a disaster to their business. All these
factors meant ships came to be controlled by shipping companies
rather than individuals. In the 19th Century, this was made easier
by legislation that made it possible to set up limited liability
companies.
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