At first glance, those problems might seem tough to identify, but refer to an indicative plethora of external costs caused from transportation, shipping included (Hoffmann et al. At the same time, there are numerus consequences not directly assessed and linked to transportation, such as climate change, water pollution, energy shortages, land take, and other environmental concerns. Exchanges from all over the word occur daily while maritime transport is a pillar for international trade, responsible for transporting approximately 90% of total tonnage. Through frameworks such as the one presented in this work, activities and practises may be assessed as to their true impact and footprint and claim sustainability through a solid prism of holistic analysis and true profit for humanity, rather than focusing on accounting cost and turning a blind eye at other social, environmental, and health costs.Įconomic development is practically impossible without contribution of the transportation sector. This paper provides a clearer understanding of the total cost of shipping and the subsequent need of a paradigm shift, so that shipping may be able to portray its potential with reference to societal and environmental benefits. Shipping may appear to be profitable in some cases, but the bulk of its profit is based on practises that incur a plethora of costs that are externalised. Through a structured literature review the relevant costs are identified and assessed, providing a complete framework as to the actual cost of shipping. This paper introduces a framework for the total cost of ownership in shipping, which includes a holistic approach as to the true costs associated with shipping practises. Yet, the shipping ecosystem has been able to exacerbate environmental, social, and health costs that in the end may prove that shipping, in the way that it is conducted, may not be as profitable as it may seem. The holistic shipping system has been growing with its main parameter pertaining to accounting cost minimisation. Its manifestation requires the introduction of relevant supporting industries as well, such as port, cargo, and logistics operations. Shipping is a practise developed from the dawn of history. Shipping is pivotal for global commerce, yet its externalities are not yet fully set into context, especially with reference to environmental impact.
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