Two major categories under which water transport can be divided are as follows: 1. Inland Waterways 2. Ocean Transport!
Since, prehistoric times, water transport has been used for carrying both men and goods. Water transport probably developed before the use of animals because waterway formed an easy means of travel in places where dense forests on land hindered movement.
The range and importance of water transport was increased when power of wind was harnessed by use of boats or some other medium. At first, boats were small and confined mainly to inland waters and sheltered coastal areas.
The gradual increase in size and complexity of sailing craft allowed trade to be established. The Phonecians, Egyptians, Greeks and Romans as well as Arabs and Indians had wide trading contacts. The use of steam has given a new dimension, greater power and speed to water transport to carry larger goods at long distances.
The use of diesel and other forms of power has changed the entire scenario of the water transport and today most of the world trade is water-borne. The two greatest advantages of water transport are that it uses oceans, rivers, seas and needs no special tracks, and that it is the cheapest form of transport for large and bulky loads.