DOCSLIB.ORG

Towards a New Intermediate Hub Region in Container Shipping? Relay and Interlining Via the Cape Route Vs

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Towards a New Intermediate Hub Region in Container Shipping? Relay and Interlining Via the Cape Route Vs Journal of Transport Geography 22 (2012) 164-178 Contents lists available at SciVerse ScienceDirect Journal of Transport Geography ELSEVIER journal homepage: www.elsevier.com/locate/jtrangeo Towards a new intermediate hub region in container shipping? Relay and interlining via the Cape route vs. the Suez route Theo E. Notteboom* ITMMA - University of Antwerp, Kipdorp 59, BE-2000 Antwerp, Belgium Antwerp Maritime Academy, Noordkasteel Oost 6, 2030 Antwerp, Belgium ARTICLE INFO ABSTRACT Keywords: The Suez Canal plays a pivotal role in today's global container shipping network, in particularly in accom­ Container shipping modating vessels sailing on the important Asia-Europe trade lane. This paper analyses to what extent and Vessel routing for which trade lanes the Cape route could develop into a competitive alternative to the Suez route. The Competition market potential of the Cape route is analysed using a distance analysis, a transit time analysis and a gen­ Interlining eralized cost analysis for a large set of 0/D relations. We compare vessel interlining via the port of Algec- Suez Canal iras w ith interlining via the new port of Ngqura in South Africa. The results show that the Cape route has Cape the potential to serve as an alternative to the Suez route on 11 trade lanes. A scenario and sensitivity anal­ ysis reveals that interlining via a hub near the Cape is expected to become more competitive due to a combination of higher Suez Canal transit fees, better vessel economics, higher bunker costs, slow steam­ ing practices and subject to a more competitive terminal pricing strategy of southern African tranship­ ment facilities. The expected emergence of the Cape route should be seen as the embodiment of a promising development of south-south trade volumes between Asia, Sub-Saharan Africa and South America. © 2012 Elsevier Ltd. All rights reserved. 1. Introduction Mediterranean, to name but a few. The role of intermediate hubs in maritime hub-and-spoke systems has been discussed exten­ From a network perspective, the location and function of sively in recent literature (see for instance Baird, 2006; Fagerholt, terminal facilities is not always guided by centrality vis-à-vis a 2004; Guy, 2003; McCalla et al., 2005). The hubs have a range of local/regional service area. Fleming and Hayuth (1994) pointed common characteristics in terms of nautical accessibility, proxim­ out that intermediate locations can emerge between origins and ity to main shipping lanes and ownership, in whole or in part, by destinations. While the concepts of centrality and intermediacy carriers or multinational terminal operators. These nodes m ultiply are not always clear-cut in practice, intermediate nodes are added shipping options and improve connectivity within the network to a network when considered appropriate by the network opera­ through their pivotal role in regional hub-and-spoke networks tors in view of overall performance of the network. Intermediacy and in cargo relay and interlining operations between the carriers’ typically improves the overall network connectivity and service east-west services and other inter- and intra-regional services. frequency, allows better use of economies of scale in transport Rodrigue and Notteboom (2010) argue that such intermediate equipment and generates additional cargo handling in the network. hubs in some cases go beyond a pure transfer function in the net­ Intermediacy has become increasingly prevalent in container work through processes of foreland-based regionalization. liner shipping. Container cargo is bundled by combining/linking Most of the intermediate hubs are located along the global belt­ two or more liner services through the setting of hub-and-spoke way or equatorial round-the-world route (i.e. the Caribbean, networks that rely on mainline/feeder, relay and interlining activ­ Southeast and East Asia, the M iddle East and the Mediterranean). ities in intermediate hub terminals. Intermediate hubs emerged Port sites situated close to strategic passage ways such as the since the mid-1990s within many global port systems: Freeport Straits o f Gibraltar, the Suez Canal, the Panama Canal and the Ma­ (Bahamas), Salalah (Oman), Tanjung Pelepas (Malaysia), Gioia lacca Straits act as magnets on the development of transhipment, Tauro, Algeciras, Taranto, Cagliari, Damietta and Malta in the relay and interlining activities. While the route via the Cape at the southern tip of the African continent can also be considered as a strategic passage way, at present it does not play a significant * Address: ITMMA - University of Antwerp, Kipdorp 59, BE-2000 Antwerp, Belgium. Tel: +32 3 265 51 52/3 205 64 30; fax: +32 3 265 51 50. role in the global container shipping network. The container port E-mail address: [email protected] systems in countries like South Africa, Mozambique, Namibia and 0966-6923/$ - see front matter © 2012 Elsevier Ltd. All rights reserved, doi: 10.1016/j.j trangeo.2012.01.003 T.E. Notteboom/Journal of Transport Geography 22 (2012) 164-178 165 the islands of Madagascar and Mauritius are considered remote to Middle East/Asia and Europe. This process has accelerated since the main network and are served by a limited number of container the 1970s when significant scale increases in oil tankers and bulk carriers (m ainly Maersk Line, MSC, MOL, Evergreen and CMA CGM). carriers coincided w ith m ajor upgrades o f the Suez Canal. The glo­ There are no hub-and-spoke and relay/interlining operations in the bal container shipping network now primarily relies on the equa­ region comparable to the ones found along the global beltway. The toria l route in w hich the Suez Canal is a key m aritim e passage. geographical location and the current limited cargo potential of 6852 container vessels transited the Suez Canal in 2010, an in ­ southern Africa seem to make the ports in the region no match crease of 46% compared to 2001. More than a third of all vessels for the traditional relay/interlining centres located at the cross­ using the Canal are container vessels (Table 2). About 646 million roads of east-west and north-south trade. As a result, tranship­ tons of cargo passed via the Canal in 2010. Some 57% of the cargo ment incidence in Africa was around 32% in 2008, but this is volume is containerized (Table 3). Total container volumes reached mainly the result of the North-African transhipment hubs of Port an estimated 33 million TEU in 2010 compared to 20 million in Said (transhipm ent incidence o f 96.3%), Damietta (83.1%), Alessen- 2004. Nearly 93% of these container flows are related to the Eur- dria (77.3%) and Tanger Med (99.1%). Africa, excluding these North ope-Asia trade routes. North America (East Coast)-Asia trade rep­ African hubs, has a low transhipment incidence of only 12% which resents about 5.3% (figures Boston Consulting and Suez Canal points to a port system with a weak ‘intermediacy’ in the global Authority). container shipping network. Important for this study is that the North-South and diagonal Recent history has shown that container shipping remains a trade lanes (e.g. North Europe-West Africa and North Europe- highly dynamic market. Shippers and shipping lines are continu­ South America) are largely connected to the main beltway via tran­ ously re-assessing the design of their shipping and distribution shipment and interlining/relay hubs such as Algeciras in Spain, networks in search of high cost efficiency, manageable risks and in­ Tanger Med in Morocco and Port Said and Damietta in Egypt. creased routing flexibility. Against this background, this paper In this paper we w ill analyze the market potential of the Cape analyses to what extent and for which trade lanes interlining/relay route by answering the following research question: operations along the Cape route could develop into a competitive What is the current and expected future market position of alternative to existing routes. We particularly zoom in on the po­ intermediate hub locations in southern Africa vis-à-vis interme­ tential for ports in southern part of Africa to serve as an alternative diate hubs in the Mediterranean for east-west and north-south to the main hubs on the east-west shipping routes for attracting relay and interlining operations? relay/interlining business. This paper not only assesses the current competitive position of southern Africa in this respect, but also Fig. 1 gives a schematic representation of the methodology de­ elaborates on the conditions that need to be met in order to make ployed. The concept of ‘market position’ is made operational by the Cape route a viable option in container shipping networks. analyzing and comparing relative distances, transit times and gen­ In the first part of this paper, we develop the research question eralized costs on a set of origin-destination relations. A first qual­ and a methodology to analyse route competition between the Cape itative analysis of the relevant routes to consider when comparing route and the Suez route. Next, the results of the route competition the Cape route and the Suez route resulted in 14 relevant origin- analysis are discussed. The paper concludes w ith a discussion on destination relations (Table 4). The choice of the 14 routes w ill key issues related to the com petitive position o f the Cape route be further substantiated in the distance and transit time analyses. vs. the Suez route. Most of the selected routes relate to shipments between West Afri­ ca and Asia and South America and Asia. 2. Research question and methodology We compare the Suez route and the Cape route by using pivotal ports: the port of Algeciras as a main transhipment and interlining/ Over the last 50 years or so, the development and upgrading of relay hub linked to the Suez route and the new port of Ngqura in the Suez Canal (Table 1 ) gradually undermined the position of the South Africa as a potential transhipment and interlining/relay route via the Cape as the dominant vessel route between the hub linked to the Cape route.
Load more

Recommended publications
  • The Response of Elite European Merchant Companies to European Expansion Into Asia and the Americas, C.1492-C.1530
    The Response of Elite European Merchant Companies to European Expansion into Asia and the Americas, c.1492-c.1530 Eleanor Marie Russell Pembroke College November 2019 This dissertation is submitted for the degree of Doctor of Philosophy. Declaration This thesis is the result of my own work and includes nothing which is the outcome of work done in collaboration except as declared in the Preface and specified in the text. It is not substantially the same as any that I have submitted, or, is being concurrently submitted for a degree or diploma or other qualification at the University of Cambridge or any other University or similar institution except as declared in the Preface and specified in the text. I further state that no substantial part of my thesis has already been submitted, or, is being concurrently submitted for any such degree, diploma or other qualification at the University of Cambridge or any other University or similar institution except as declared in the Preface and specified in the text. It does not exceed the prescribed word limit for the relevant Degree Committee. 2 Abstract The Response of Elite European Merchant Companies to European Expansion into Asia and the Americas, c.1492-c.1530 Eleanor Marie Russell This thesis analyses the multi-national European merchant-banking companies who dominated European commerce at the beginning of European engagement with the Americas and with Asia via the Cape Route, focusing upon how they responded to these changes. In the first decades of the sixteenth century, it was these companies, mostly from southern Germany and the Italian city-states, who dominated the European trade in Asian and American goods, whose capital funded Spanish and Portuguese royal policies overseas, and whose agents played crucial roles in establishing the Spanish and Portuguese empires and colonial trade.
    [Show full text]
  • Título Documento (Heading 1)
    Project Documents The transport of natural resources from Latin America and the Caribbean to Asia-Pacific United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) Economic Commission for Latin America and the Caribbean (ECLAC) This document has been prepared by Division of Transport from the United Nations Economic and Social Commission for Asia and the Pacific and the Economic Commission for Latin America and the Caribbean (ECLAC) as part of the activities carried out under the project ECLAC/UNDA “Logistics integration for a more sustainable exploitation of natural resources in Latin America and the Caribbean” (SB-001324). The views expressed in this document, which has been reproduced without formal editing, are those of the authors and do not necessarily reflect the views of the Organization. Publicación de las Naciones Unidas LC/TS.2018/xx Distribución: Limitada Copyright © Naciones Unidas, marzo de 2018. Todos los derechos reservados Impreso en Naciones Unidas, Santiago S.17-xxxxx La autorización para reproducir total o parcialmente esta obra debe solicitarse a la Comisión Económica para América Latina y el Caribe (CEPAL), División de Publicaciones y Servicios Web, [email protected]. Los Estados Miembros de las Naciones Unidas y sus instituciones gubernamentales pueden reproducir esta obra sin autorización previa. Solo se les solicita que mencionen la fuente e informen a la CEPAL de tal reproducción. ECLAC The transport of natural resources… Contents Contents .........................................................................................................................................
    [Show full text]
  • Muslim Trade and City Growth Before the Nineteenth Century: Comparative Urbanization in Europe, the Middle East and Central Asia
    British Journal of Political Science (2019), page 1 of 24 doi:10.1017/S0007123419000267 ARTICLE Muslim Trade and City Growth Before the Nineteenth Century: Comparative Urbanization in Europe, the Middle East and Central Asia Lisa Blaydes1* and Christopher Paik2 1Department of Political Science, Stanford University and 2Division of Social Science, New York University Abu Dhabi *Corresponding author. E-mail: [email protected] (Received 21 May 2018; revised 1 December 2018; accepted 9 May 2019) Abstract Scholars have long sought to understand when and why the Middle East fell behind Europe in its eco- nomic development. This article explores the importance of historical Muslim trade in explaining urban growth and decline in the run-up to the Industrial Revolution. The authors examine Eurasian urbanization patterns as a function of distance to Middle Eastern trade routes before and after 1500 CE – the turning point in European breakthroughs in seafaring, trade and exploration. The results suggest that proximity to historical Muslim trade routes was positively associated with urbanization in 1200 but not in 1800. These findings speak to why Middle Eastern and Central Asian cities – which had long benefited from their central location between Europe and Asia – declined as Europeans found alternative routes to the East and opened trade opportunities in the New World. Keywords: international trade; Middle East; Europe; Central Asia; urbanization; economic development The late fifteenth century is often heralded as a world historic juncture that ushered in the explor- ation, and eventual exploitation, of the New World; the Columbian Exchange of crops, peoples and diseases; and an age of colonial rule by Europeans.
    [Show full text]
  • The Significance of the Cape Trade Route to Economic Activity in the Cape Colony: a Medium-Term Business Cycle Analysis
    The significance of the Cape trade route to economic activity in the Cape colony: a medium-term business cycle analysis WILLEM H BOSHOFF AND JOHAN FOURIE Stellenbosch Economic Working Papers: 23/08 KEYWORDS: COLONIAL TRADE, CAPE OF GOOD HOPE, DUTCH EAST INDIA, BAND-PASS FILTER, MEDIUM-TERM FLUCTUATIONS, BUSINESS CYCLE, SOUTH AFRICA, SHIPS, HARVEST CYCLES, COLONIAL ECONOMY JEL: N17, E32, N77 WILLEM H BOSHOFF JOHAN FOURIE DEPARTMENT OF ECONOMICS DEPARTMENT OF ECONOMICS UNIVERSITY OF STELLENBOSCH UNIVERSITY OF STELLENBOSCH PRIVATE BAG X1, 7602 PRIVATE BAG X1, 7602 MATIELAND, SOUTH AFRICA MATIELAND, SOUTH AFRICA E-MAIL: [email protected] E-MAIL: [email protected] A WORKING PAPER OF THE DEPARTMENT OF ECONOMICS AND THE BUREAU FOR ECONOMIC RESEARCH AT THE UNIVERSITY OF STELLENBOSCH 1 The significance of the Cape trade route to economic activity in the Cape colony: a medium-term business cycle analysis WILLEM H BOSHOFF AND JOHAN FOURIE1 ABSTRACT Trade is a critical component of economic growth in newly settled societies. This paper tests the impact of ship traffic on the Cape economy using a time series smoothing technique borrowed from the business cycle literature and employing an econometric procedure to test for long-run relationships. The results suggest a strong systematic co-movement between wheat production and ship traffic, with less evidence for wine production and stock herding activities. While ship traffic created demand for wheat exports, the size of the co-movement provides evidence that ship traffic also stimulated local demand through secondary and tertiary sector activities, supporting the hypothesis that ship traffic acted as a catalyst for growth in the Cape economy.
    [Show full text]
  • The Ottoman Age of Exploration
    the ottoman age of exploration the Ottomanof explorationAge Giancarlo Casale 1 2010 3 Oxford University Press, Inc., publishes works that further Oxford University’s objective of excellence in research, scholarship, and education. Oxford New York Auckland Cape Town Dares Salaam Hong Kong Karachi Kuala Lumpur Madrid Melbourne Mexico City Nairobi New Delhi Shanghai Taipei Toronto With offi ces in Argentina Austria Brazil Chile Czech Republic France Greece Guatemala Hungary Italy Japan Poland Portugal Singapore South Korea Switzerland Th ailand Turkey Ukraine Vietnam Copyright © 2010 by Oxford University Press, Inc. Published by Oxford University Press, Inc. 198 Madison Avenue, New York, New York 10016 www.oup.com Oxford is a registered trademark of Oxford University Press. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Library of Congress Cataloging-in-Publication Data Casale, Giancarlo. Th e Ottoman age of exploration / Giancarlo Casale. p. cm. Includes bibliographical references and index. ISBN 978-0-19-537782-8 1. Turkey—History—16th century. 2. Indian Ocean Region—Discovery and exploration—Turkish. 3. Turkey—Commerce—History—16th century. 4. Navigation—Turkey—History—16th century. I. Title. DR507.C37 2010 910.9182'409031—dc22 2009019822 1 3 5 7 9 8 6 4 2 Printed in the United States of America on acid-free paper for my several
    [Show full text]
  • Vasco Da Gama, the Explorer: Motivations and Myths S
    Journal of Global Initiatives: Policy, Pedagogy, Perspective Volume 11 Number 1 Examining Complex Relationships in the Article 8 Portuguese Speaking World October 2016 Vasco da Gama, the Explorer: Motivations and Myths S. Ghazanfar [email protected] Follow this and additional works at: https://digitalcommons.kennesaw.edu/jgi Part of the Arts and Humanities Commons, and the Social and Behavioral Sciences Commons This work is licensed under a Creative Commons Attribution 4.0 License. Recommended Citation Ghazanfar, S. (2016) "Vasco da Gama, the Explorer: Motivations and Myths," Journal of Global Initiatives: Policy, Pedagogy, Perspective: Vol. 11 : No. 1 , Article 8. Available at: https://digitalcommons.kennesaw.edu/jgi/vol11/iss1/8 This Article is brought to you for free and open access by DigitalCommons@Kennesaw State University. It has been accepted for inclusion in Journal of Global Initiatives: Policy, Pedagogy, Perspective by an authorized editor of DigitalCommons@Kennesaw State University. For more information, please contact [email protected]. Shaikh M. Ghazanfar Journal of Global Initiatives Vol. 11, No. 1, 2016, pp. 43-58. Vasco da Gama, The Explorer: Motivations and Myths Shaikh M. Ghazanfar1 University of Idaho Abstract The Portuguese explorer, Vasco da Gama (1460-1524), was the first European to sail from Portugal to India. The “da Gama epoch” refers to the era of European commercial and imperial expansion in Asia. The primary motivation for the 1498 voyage, however, was messianic, to ‘vanquish and subdue all Saracens (Muslims) and pagans and other enemies of Christ, to reduce their persons to perpetual slavery, and to convert to Christianity,’ as declared in various Papal Bulls, together called “the Doctrine of Discovery.” The Church divided the world into Spanish and Portuguese zones, both to be part of the Papal Empire.
    [Show full text]
  • An Exploration of the Role of Portugal in the Economic Integration of Asia and Europe with a Focus on the Pepper Market
    Asia-Pacific Economic and Business History Conference 2012 Economic Integration: Historical Perspectives from Europe and the Asia-Pacific region ANU, Canberra, Australia 16-18 February 2012 An exploration of the role of Portugal in the economic integration of Asia and Europe with a focus on the pepper market. Greg Barrett Economics Lecturer University of Canberra [email protected] Abstract Pepper was a key commodity in the early modern economic integration of Asia and Europe. The sea route from Europe to Asia, pioneered by the Carreira da Índia, played a major role in that integration. The quantity of pepper traded in Europe varied dramatically from year to year but over the two hundred and fifty years from 1450 to 1700 the quantity of Asian pepper sold in Europe more than tripled. Real pepper prices in Europe fell substantially. Historical developments in the global pepper market are used to investigate the economic integration of Asia and Europe. In the 1500s, Portugal was central to the economic integration of Asia and Europe. The Portuguese Crown intervened in the pepper market by providing shipping (Carreira da Índia), by purchasing pepper (Estado da Índia) and by selling pepper (Casa da Índia). The Portuguese used state ownership of shipping, a crown monopoly over pepper imports and regulated pepper prices to attempt to control the European pepper market but their monopoly power was limited by the survival of Venetian imports. The Carreira da Índia‟s shipping role made a significant contribution to transfers of population, products and practises between Asia and Europe. The Casa da Índia purchased European resources for transfer to Asia and distributed Asian products and knowledge in Europe.
    [Show full text]
  • Economische Evaluatie Van Transportinvesteringen: Gevalstudies
    Changes in global shipping and long-distance rail networks: possible impacts on hub port Singapore Theo Notteboom Foreign Expert/Full Professor, Dalian Maritime University, China Professor, ITMMA - University of Antwerp, Belgium Professor, Antwerp Maritime Academy, Belgium Council member and immediate past President, International Association of Maritime Economists (IAME) Co-Director Port Economics.eu MPA Visiting Professor Public Lecture NTU - School of Civil & Environmental Engineering Singapore - February 5, 2015 Singapore’s leading position in the global container shipping network Source: Ducruet & Notteboom (2012) 2 1 Maritime routes and strategic passages = (interoceanic) passages = new / alternative shipping routes = landbridges (rail-based) Source: adapted from Rodrigue & Notteboom, 2013 1. THE ARCTIC SHIPPING ROUTES 9300 miles 12100 miles 4 2 Monthly March ice extent for 1979 to 2014 shows a decline of 2.6% per decade relative to the 1981 to 2010 average. 5 Northern Sea Route (NSR) – fact sheet and prospects 6 3 2. THE SUEZ CANAL EXPANSION 7 Container ship traffic through the Suez Canal 8 4 Suez Canal Total length: 192 km, total width: 300 m, width between buoys: 180 m There is one shipping lane with four passing areas. The passage takes between 11 and 16 hours. Due to the limited width of the canal, ship convoys are formed on either side of the canal. When a container vessel arrives late at the Canal, it misses the convoy of which it was planned to be part, leading to an additional waiting time of up to 12 hours. Shipping lines reserve their place in a convoy and as such want to ensure that the vessel will make it in time to the Canal’s entrance.
    [Show full text]
  • Shipping Technology in the Portuguese and Dutch Merchant Empires
    Turning Points in Leadership: Shipping Technology in the Portuguese and Dutch Merchant Empires Claudia Rei Vanderbilt University [email protected] July 28, 2011 Abstract This paper focuses on the implications of organizational control on the race for economic leadership across merchant empires. Poor organizational choices reduce in- centives to invest, which in turn stifle technological improvements and make leading empires lag behind new entrants. Using historical evidence on shipping technology, I show that this may have been a factor behind the loss of leadership of the Portuguese merchant empire in the late sixteenth century. 1 Introduction Economic progress has often been associated with technological advancement. The age of merchant empires was perhaps the time when this relationship was more visible as decisive developments in shipping technology dictated the success or failure of long-distance trade I thank Bob Margo and Andy Newman for the early stage discussions, Jeremy Atack and Bill Collins for detailed suggestions on previous drafts, and the participants of the Frontier Research in Economic and Social History meeting in Saint Pierre d’Entremont for helpful comments. 1 (Maddison 1982, Brezis et al 1993, Israel 1989, Acemoglu et al 2005). Portugal maintained a technological edge shipping which allowed its success in the fifteenth century discoveries and the establishment of its eastern merchant empire over the following century. By 1600 however, Portugal lost its dominance to the Netherlands who became the major shipbuilder in Europe at the time. The factors affecting technology decisions across countries become therefore vital to understand the sequence of leaders in merchant empires. In this paper I explore the connection between technology adoption and organizational control in merchant empires.
    [Show full text]
  • Redalyc.CHINESE COMMODITIES on the INDIA ROUTE in the LATE 16TH – EARLY 17TH CENTURIES
    Bulletin of Portuguese - Japanese Studies ISSN: 0874-8438 [email protected] Universidade Nova de Lisboa Portugal Loureiro, Rui Manuel CHINESE COMMODITIES ON THE INDIA ROUTE IN THE LATE 16TH – EARLY 17TH CENTURIES Bulletin of Portuguese - Japanese Studies, vol. 20, junio, 2010, pp. 81-94 Universidade Nova de Lisboa Lisboa, Portugal Available in: http://www.redalyc.org/articulo.oa?id=36129852004 How to cite Complete issue Scientific Information System More information about this article Network of Scientific Journals from Latin America, the Caribbean, Spain and Portugal Journal's homepage in redalyc.org Non-profit academic project, developed under the open access initiative BPJS, 2010, 20, 81-94 CHINESE COMMODITIES ON THE INDIA ROUTE IN THE LATE 16TH – EARLY 17TH CENTURIES Rui Manuel Loureiro Centro de História de Além-Mar & Instituto Superior Manuel Teixeira Gomes Abstract This text briefly covers some of the issues related to the movement of Chinese goods on the India route – the Carreira da Índia – in the late 16th and early 17th cen- turies. Essentially it raises issues concerning more practical aspects of the trade in goods originating in China, from their shipment in Malacca until they reached the European ports, having travelled a very long distance by sea, a journey that could take as long as two years, with shorter or longer stopovers in Macao and Goa. Many of the records referring to this maritime trade disappeared without a trace. Most were engulfed by the infamous Lisbon earthquake of 1755 which destroyed the India House – or Casa da Índia – and its priceless archives. Alternative sources have then to be sought, a process that is attempted in this survey.
    [Show full text]
  • Did Vasco Da Gama Matter for European Markets? Testing Frederick Lane's Hypotheses Fifty Years Later
    Did Vasco da Gama Matter for European Markets? Testing Frederick Lane's Hypotheses Fifty Years Later by Kevin H. O’Rourke (Trinity College Dublin, CEPR and NBER) Jeffrey G. Williamson (Harvard University, CEPR and NBER) December 2005 Bill Caferro, Greg Clark, Leonor Costa, Ivana Elbl, Giovanni Federico, Haggay Etkes, Ron Findlay, Avner Greif, Pedro Lains, Peter Lindert, Paolo Malanima, Anne McCants, John Munro, Peter Lindert, Ôevket Pamuk, Jaime Reis, Sandra Sequeira, Nathan Sussman and Jan Luiten van Zanden all helped us with the evidence and argument, for which we are grateful. In addition, we gratefully acknowledge the comments received at the Medieval Global Economies Conference, University of Western Ontario, London, Canada (November 11-13, 2005). The project also benefited from the able research assistance of Katherine Johnson, Sibylle Lehmann, Ying Sun, Cristina Valverde and Darya Zhuk. Work on the paper started while O’Rourke was an IRCHSS Government of Ireland Senior Fellow, and he wishes to thank the Irish Research Council for the Humanities and Social Sciences for its generous financial support. Likewise, Williamson acknowledges generous financial support from the National Science Foundation and the Harvard Faculty of Arts and Sciences. Abstract In his seminal publications between the 1930s and 1960s, Frederick Lane offered three hypotheses regarding the impact of the Voyages of Discovery that have guided debate ever since. First, pepper and other spice prices did not rise in European markets in the century before the 1490s, and thus could not have ‘pulled in’ the oceanic explorations by their rising scarcity. Second, Portuguese circumnavigation of Africa did not lower European spice prices across the 16th century, implying that the discovery of the Cape route had no permanent effect on Euro-Asian market integration.
    [Show full text]
  • Historical Perspectives on Trade and Risk on the Silk Road, Middle East and China
    Topics in Middle Eastern and African Economies Vol. 17, Issue No. 2, May 2015 Historical Perspectives on Trade and Risk on the Silk Road, Middle East and China E. Mine Cinar, Katherine Geusz, and Joseph Johnson Loyola University Chicago JEL Codes: N25, N23, F10, F39 Keywords: Historical Silk Road, China, international trade, risk Abstract: In this paper we examine historical trends in the Silk Road where we discuss historical trade risks, Chinese dynasties and trade. We examine trade risks along the land and sea routes through Central Asia and Middle East. We discuss Chinese balance of payments during different dynasties and the changes in the land and the sea routes. We examine how the trade patterns and routes shifted with the discovery of the New World and when the Dutch and the British formed pooled risk trade associations. Introduction China has gone through many changes in the 20th century and has emerged as one of the largest trading countries in the world in its last two decades. In a way, China has reestablished itself as a world trade power as she was during the historical Silk Road trade, where trade corridors through land and sea across central Asia and the Middle East developed despite numerous risks and hazards and where trade flourished for more than a millennium. Modern day Chinese trade has, presently, developed again after doors were opened to China by US and European countries in the 1970s and continues to grow. One can see the importance of trade in 156 Topics in Middle Eastern and African Economies Vol.
    [Show full text]