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Shipping CycleMembers:Mnica GonzlezIsaac GranjaLecturer:Mr. Max
Galarza
Grade 10Logistics II B06 de Junio del 2016
Shipping CycleThe shipping cycle is an economic concept that
explains how shipping companies and freight charges respond to
supply and demand. It examines how and why ships build up in sea
trading ports. The cycle also seeks to explain what affects the
selling price of ship fleets and what types of ships sell during
slow business periods.
The 4 stages of Shipping cycle1. TROUGH
The first stage of the shipping cycle is called a trough. An
excess in capacity characterizes a trough. Ships begin to
accumulate at trading ports, while others slow down shipments by
delaying their arrivals at full ports.
2. RECOVERY
Recovery is the second stage of the shipping cycle. In this
stage, supply and demand move toward equilibrium, meaning both
supply and demand levels match each other closely. Freight charges
begin to increase, eventually surpassing operating costs.
3. PEAK
The shipping cycle's third stage is a peak or plateau. At this
point, the shipping freight rates become quite high - often double
or triple the amount of fleet operating costs. The levels of supply
and demand are almost completely equal.
4. COLLAPSE
The fourth stage of the shipping cycle, collapse, occurs when
supply levels begin to exceed demand. Freight rates begin to
decline during a collapse. Shipping containers and fleet begin to
accumulate in trading ports once again.
The role of Cycles in ShippingEconomicsMarket cycles are the
driving force behind shipping investment and chartering.They are
the heartbeat of the shipping market, pumping cash in and out of
the business.
Is Puerto Limon a Real Lemon ?
Year of publication:2011
Authors: Kent, Paul; Fox, Alan K. Published:International
handbook of maritime economicsLanguage: English
Type of Publication: Article
This paper presents a comparative analysis of the inefficient
Puerto Limon in Costa Rica and the efficient port of Cartagena in
Colombia, illustrating the influence of port efficiency on the
costs of maritime transport and the damaging impact this has upon
trade.
An attempt is made to identify the underlying causes of
disaggregated disparities in cost efficiency and to arrive at an
aggregate cost of inefficiency. This is then treated as a tax in
the Global Trade Analysis Project (GTAP) model to quantify the
impact that port inefficiency has had on trade and welfare.Is
Puerto Limon a Real Lemon ?
The conclusions reveal that Central America's high freight rates
cannot be solely attributed to low cargo volumes, as is sometimes
claimed; port inefficiencies are also a culprit in that they exert
a significant influence in terms of additional fuel costs, as well
as the number of ships which carriers deploy, through overly long
loading and discharging times.
While the difficulties in doing so are acknowledged, the authors
propose that inducing competition, particularly port privatization,
is the way towards port reform that will advance Central American
nations, such as Costa Rica, whose economies are suffering as a
result of an inefficient port sector.
http://www.ehow.com/info_8466520_four-stages-shipping-cycle.htmlhttp://lawexplores.com/shipping-market-cycles/http://marketrealist.com/2014/06/ship-order-strength-a-must-follow-for-dry-bulk-shipping-investors/https://www.youtube.com/watch?v=xMa1vevj1kA
https://trid.trb.org/view/1118972https://www.econbiz.de/Record/is-puerto-limon-a-real-lemon-port-inefficiency-and-its-impact-paul-kent/10011179476
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