MARITIME ECONOMICS

Shipping Cycles and Transport Patterns

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

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

Invest?

Lend?

Savings

Trade Patterns

The Westline Theory

Pacific Intertrade

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
Closing

Norwegian Sales Form way of Putting the Negotiation of Memorandum ship on the price and Inspections determining price of Agreement market conditions Freight Rates have great influence

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 Fleet

Note 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

How to React on Todays Market

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

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