Saturday, October 19, 2019
A report on dry bulk shipping
A report on dry bulk shipping Shipping is indubitably one of the fascinating industries in the world. It requires vast knowledge and skill to cop up with the day to day operations because of the complexity of the industry and its dependence on world economics. Dry Bulk ships carry dry cargoes in bulk from one port to another and can be categorised into handysize,Ã handymax,Ã panamax,Ã capesize, and very large bulk and ore carriers according to their sizes. The performance of the bulk shipping market depends on the demand for and supply of bulk shipping services, as well as the characteristics of the market structure. The importance of shipping cycle in case of dry bulk carrier is that they plays a vital part in the economics of shipping industry by managing the investment risk in an industry ,where there is large uncertainty about the future (Stopford,2009) Section 1 Literature Review One of the major aspects affecting the future of dry bulk shipping is the quality and the safety perspective. Nominal freig ht differentiation between Ã¢â¬ËqualityÃ¢â¬â¢ and Ã¢â¬ËotherÃ¢â¬â¢ tonnage has been observed occasionally and much services has been paid to promoting the need for younger and safer ships (TamvakisÃ and Thanopoulou,2000) Another factor that can influence maritime flows of dry bulk commodity is seasonality patterns .Spot rates for bigger vessels shows higher seasonal variations compared to smaller vessels, although differences in seasonal fluctuations between sectors are removed as the contract duration increases. Ã (Kavussanos and Alizadeh,2001) Investing in shipping industry has an entirely new aspect by the introduction of private equity and the development of a hedging strategy, now this can be treated as a portfolio optimization problem. The freight futures provide a comparatively novel medium for hedging risk inÃ dry bulkÃ shipping markets. New uprising financial strategies in dry bulk shipping in future can revolutionize the entire market.( Cullinane,1995) Dura tion analysis done by Bijwaard G.E and Knapp.S provides an insight to the effectiveness of prolonging ship lives and the empirical data solidifies the idea about the life span of dry bulk carrier. Life span is an important aspect in predicting the ship cycle(Bijwaard and Knapp,2009)Scrapping of ship is done at a particular time and this is done when the ship is retired from the current use or when shipping cycle demands it. Gain and losses after the scrapping of a ship . entirely depends on the market condition. Demand of Dry bulk shipping is always related to the scrapping industry.(Knapp,2008) The Government is proposing that the UKÃ¢â¬â¢s CO2 emissions should fall by at least 80% by 2050 . Release of exhaust gases and particles from oceangoingÃ ships is an important and growing provider to the total emissions from the transportation sector. New strategies like slow steam, alternate fuel and new logistic approach like jumbo ore carriers etc will be used in future to make the s hipping sector more eco friendly(Eyring et al,2010) Research Hypothesis Marine flow of dry bulk goods in 2050 will be largely influenced on numerous factors and the background study done above concretes this statement. From the background study done above following hypothesis are made.