Liner Shipping Economics

Introduction Shipping is a service industry that by commonplace acknowledgement provides the lifeline of international trade. Suffice it to say that, due to the morphology of our planet, 90% of international trade takes place by sea. Technological developments in ship design and construction, and the ensuing economies of weighing machine of larger ships, have also promoted trade particularly that of maturation nations- by making economical the dit of goods over big distances. This has expanded markets for raw materials and final products and has facilitated the industrialisation of many countries nearly the world. Often, the exaltation industry is categorised in two major(ip) sectors (markets): the bulk shipping sector (engaged mainly in the transportation of raw materials such as oil, coal, iron ore and grains), and the liner shipping sector (engaged in the transportation of final and semi-final products such as computers, textiles and a miscellany of manufacturing output). From an economic and industry structure office of view, the two sectors are as different as they could be: bulk shipping uses very large carriers, such as tankers and bulk-carriers, to transport goods in bulk on a condense basis.

The service requires minimal infrastructure and in this respect it resembles a taxi service whereby the contractual relation between passenger and driver (cargo owner and shipowner) expires upon the completion of the trip. The industry is highly war-ridden with prices ( onus rates) fluctuating wildly even in the course of a single week. Modelling in bulk shipping is accordingly focused on the estimation of demand and supply functions and freight rate forecasting. For a good literature review probe Beenstock & Vergottis (1993), Stopford (1997), Norman (1979) and Wergeland (1981). On the contrary, liner shipping is geared to the planning of regular services between specified ports according to time-tables and prices denote well in advance (Jansson and Shneerson 1987,... If you want to get a full essay, order it on our website: Ordercustompaper.com

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