Maritime Economics

MARITIME ECONOMICS

Shipping Cycles and Transport Patterns

This presentation will show the basic principles and processes of maritime economics, including strategy and development

Maritime Economics

Contents

Shipping Trends since WWII Financing Ships Trade Patterns The 4 Shipping Markets The Shipping Market Today

Regulations Strategy The Tanker Market The Liner Market Piracy

Shipping since WWII

Shipping since WWII

Shipping since WWII

Shipping since WWII

The Container

First seen in coal mining in England

Seatrain Lines The Australian

Army Malcolm McLean

and the modern container

ISO 6346 – The intermodal Container

Financing Ships

SavingsInvest? Lend?

Trade Patterns

The Westline Theory

Pacific Intertrad

e

Seaborne Trade of 1991

The 4 Shipping Patterns

The 4 Shipping Markets

The Freight Market

Freight Contract Time charter ”Fixing a ship” Voyage charter Bare-boat charter Contract of Affreightment

The Sale & Purchase Market

1000 deep sea merchant ships are sold p.a.

Shipowner Purchaser Shipbrokers Norwegian Sales Form way of

determining price Freight Rates have great influence

Putting the ship on

the market

Negotiation of price

and conditions

Memorandum of

Agreement

Inspections Closing

The Sale & Purchase Market

The Newbuilding Market

When do I need a new Ship? Specifications from buyer Offers

Local suppliers Steel price Labour price Freight Rates

Negotiations Design, price, quality

The Newbuilding Market

Supply/Demand

Where are we now?

Supply/Demand

We are about here

The Demolition Market

Scrapyards = Customers Shipbrokers can act as intermediate Strong, if freight market is weak Mostly in development countries

Low productivity because of low automisation

Selling steal and equipment Some things are sold locally

The Demolition Market

The Shipping Market Today

The World FleetNote

increase in Dry Bulk

The World Fleet

The World Fleet

Regulations

The Law of the Seas Classification Societies Flag States Coastal States

PSC The International Convention on Arrest of

Ships 1999 MARPOL ISPS

What to do in order to compete on todays market in perspective of future developments

How to React on Todays Market

Best Strategy?

Find a Niche! Find the Money Lowest possible Operation Cost Value at Risk Strategic Alliances

The Liner Market

The Liner Market

The Liner Market

The Liner Market

The Tanker Market

Crude oil and petroleum products Approx. 1/3 of world seaborne trade Currently pressed by rates

2009 was a particularly bad year Peaks during north European winter

Growing trade between Africa and China Is expected to divert to the closer European

market because of disruptions from the Mediterranean

The Tanker Market

The Tanker Market

Piracy

All-time high Threatening

supply chain Binding Naval

Forces Private Security

Cape Hope