Maritime Economics - Chapter 1

8/12/2019 Maritime Economics - Chapter 1

1/5

CHAPTER 1

THE ECONOMICS ORGANIZATION OF THE SHIPPING MARKET

This chapter focuses on the shipping marketas a ho!e"

1. The economic importance of shipping (P.2+3)

Shipping is one of the worlds most international industries.In a sense# sea$orne tra%e is

at the ape& of the or!% acti'it() The *ariti*e in%ustr( has pro'i%e% the 'ehic!e for an

e&traor%inar( +roth of tra%e)

Shipping and sea trade motivate the progressionfro* a or!% of iso!ate% co**unities

to an inte+rate% +!o$a! co**unit()

2. Shipping market:

Shipping marketis a +roup of peop!e inc!u%in+" shiponers# $ro,ers# ship$ui!%ers an%

$an,ers# ho *a( seeshipping as much more than just a business1)

-urin+ the !ast fift( (ears the cost of transporting major commodities by sea has

faen steadiy)

. How this has been achieved?

The season for the re%uction of shippin+ cost is the / technica! re'o!utions in

shippin+" 0P)234

The *ost i*portant technica! %e'e!op*ent as the uniti5ation of the !iner shippin+ $usiness

throu+h intro%ucin+ pa!!eti5ation an% containeri5ation 0puttin+ +enera! car+o into stan%ar%

units4 to spee% up the f!o of car+o# to $e safe car+o fro* %a*a+e of pi!fera+e)

The bulk shipping revolution (for raw materials): 6( e*p!o(in+ econo*ics of sca!e

0$i++er ships4# in'estin+ in hi+h spee% car+o han%!in+ s(ste*s an% inte+ratin+ the ho!e

transport s(ste*s

There are / shippin+ *ar,ets" !iner market and "#k market (tramp)/

. Definition of liner cargo and bulk cargo

6u!, car+o" Most of $u!, car+oes are %ran fro* the ra *ateria! tra%es ith 'o!u*e

sufficient!( !ar+e to fi!! a ho!e ship such as oi!# iron ore# coa! an% +rain) There are four

1One Gree, shiponer'i'i%!( su**ari5e% his phi!osoph( in the fo!!oin+ a("7Shippin+ is our ho$$() 8e ha'e $een

rear%e% unusua!!( e!! in the pass an% e sha!! $e in the future) The o%%s are for us# +ent!e*en# in shippin+)7

2Accor%in+ to Roch%a!e Report 019:;4"


2/5

*ain cate+ories of $u!, car+o" Liquid bulk The dr! bulk cargo "inor bulks Specialist

bulk cargoes0p)134)


3/5

. PS" Car+o capacit( 0the tonna+e of car+o it can carr(4

Fro* the e>uation it cans inferre% that"

. Bnit costs +enera!!( fa!! as the si5e of the ship increases $ecause of capita!#

operatin+ an% car+o han%!in+ costs %o not increase proportiona!!( ith the

car+o capacit()

. An% the cost of carr(in+ 'er( s*a!! car+o parce!s is *uch hi+her than the cost

of !ar+e parce!s In another or%# econo*ics of sca!e %o*inate shippin+

econo*ics) It is %ue to that as parce!s $eco*e too s*a!! to occup( a ho!e ship

the cost esca!ates further $ecause of the hi+h cost of han%!in+ an% pac,in+

s*a!! parce!s 0p)/34)

Port char+es *ust co'er Bnit costs an% other fees char+in+ ships for the use of port@s

faci!ities 0p)14)

3. The $ord merchant feet

Types of ship in the cargo feet (page 1%)

.


4/5

191/ .

19;

-eep sea %iese!.

poere% ship)

. O'er the ne&t fift( (ears the %iese! en+ine re!ace% the

stea* en+ine# e&cept in the !ar+est ships)

. 8e!%in+ starts to rep!ace ri'ets in hu!! construction an%auto*ation ha!'e% the nu*$er of cre re>uire%)

. Hatch %esi+ns# car+o han%!in+ +ear# na'i+ation e>uip*ent

a!! i*pro'e% in efficienc()

19;s.

present

-eep sea %iese!.

poere% ship

. the fue! efficienc( of %iese! en+ines increase% $( /3)

. fine tunin+ hu!! %esi+ne% ith the resu!t that for so*eships t(pes the tonna+e of stee! as re%uce% $( ;)

. Hu!! paints i*pro'e% to +i'e $etter s*oothness for the

su$*er+e% hu!! an% i*pro'e% !on+e'it( for tan, coatin+s)

The gro$th of ship sie

. The ships si5e ha% $een increasin+ a!on+ ith ti*e# an% $rou+ht a$out the

re%uction of shippin+ costs 0for *ore %etai! fi+ure 1):# p)//4)

argo speciaiation

. Specia!i5ation is the cornerstone of econo*ic %e'e!op*ent an% this is precise!(

the path fo!!oe% $( the shippin+ in%ustr() 8ith each %eca%e ne ship t(pes

ere %e'e!ope% to i*pro'e the transportation of specific car+oes 0p)/4)

Shipping market cyce

. It is a process in hich as the ship +ros o!% or o$so!ete it tric,!es %on the

*ar,et# fa!!in+ in 'a!ue# unti! at so*e sta+e# usua!!( $eteen tent( an% thirt(

(ears# it hits the %e*o!ition *ar,et) Or in another or%# hen an oner has

finishe% ith a ship he se!!s it) Another shippin+ co*pan( $u(s it at a price


5/5

hich he $e!ie'es he can *a,e a profit) If no oner thin,s he can *a,e a

profit# the ship i!! $e $i% $( scrap %ea!er 0p)/4)

*. The roe of ports in the transport system

. -efinition of Port# Port Authorit( an% Te*ina!)

%ort:is a +eo+raphica! area here ships are $rou+ht a!on+ si%e !an% to !oa% an%

%ischar+e car+o) An% ports are the crucia! interface $eteen !an% an% sea here

there are *an( rea! acti'ities ta,in+ p!ace)

%ort 0uthorit!:is th or+ani5ation responsi$!e for pro'i%in+ the 'arious *ariti*e

ser'ices re>uire% o $rin+ ships a!on+si%e !an%) One Port Authorit( *a( contro!

se'era! ports)

Terminal:is a section of the port consistin+ of one or *ore $erths %e'ote% to a

particu!ar t(pe of car+o han%!in+)

. Port functions"

Pro'i%in+ a secure !ocation here ships can $erth# han%!in+ an% stora+e

faci!ities for in$oun% an% out$oun% car+oes)

Connectin+ in!an% transportation s(ste*s for car+o %istri$utionconso!i%ation)

Port i*pro'e*ent p!a(s a *a=or part in re%ucin+ sea transport costs 0p)/92;4)

. T(pes of port 0si5e criterion4"

T(pe 1 s*a!! !oca! port

T(pe / !ar+e !oca! port

T(pe !ar+e re+iona! port"

T(pe re+iona! %istri$ution centers"

0see *ore in fi+ure 1)9# p);43) The organiation of the companies that r#n the b#siness)

The( ha'e 'er( 'arie% or+ani5ation an% %ecision*a,in+ structures 0p)/4)

Documents

Maritime Economics - Chapter 1