Impact of the Modern Silk Road in International Logistics

Abstract

More than 2100 years ago, the well-known trade routes, the Silk Road and the Maritime Silk Road, were established to promote communications and culture exchanges and to facilitate trade between Asia, Europe and Africa, leaving behind the footprints of early global economic and trade exchanges. In today's information age, transportation and communication are more advanced than ever before, and the trend of economic globalization is even more unstoppable. In 2013, the modern Silk Road, called the Belt and Road Initiative, which is short for the phrase the Silk Road Economic Belt and the 21st Century Maritime Silk Road, was proposed in order to promote the development of the related countries. The objective of the thesis was to present what advantages countries and industries could gain from the Belt and Road Initiative by analyzing information about the Belt and Road Initiative’s effect on international logistics from the aspects of transportation, transportation constructions, opportunities and challenges in the supply chain, finance and different industries. The effects on different areas were presented and analyzed by utilizing the desk research method. The historical research approach and literature reviews were applied to analyze the topic. The method for analyzing the documentations, theories, articles as well as some recent cases related to the Belt and Road Initiative was based on both the qualitative and quantitative approaches. By providing figures, graphs and tables, the thesis analyzes the impact that the Belt and Road Initiative has brought and will bring to international logistics. According to the results, the Belt and Road Initiative has provided a variety of opportunities for the international logistics of countries and industries. The delivery times are shorter, the transportation costs are lower, more collaboration networks are formed, all of which also improves the economic situation. The Belt and Road Initiative has enabled more people to enjoy the convenience and benefits brought by trade and transportation.