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Shipping Industry - Essay Example
The shipping industry is considered as one of the most important sectors of the economy because it contributes significantly to the growth and development of a country. It is an industry that handles different types of cargo that are used in different sectors of the economy…
In this industry some of the operational and economic characteristics include the quantity, timing and the physical characteristics of the cargo being shipped from one place to another. Cargos physical and commercial characteristics determine the kind of ship type to be used within a specified period of time. For example items such as natural gas or nuclear facilities require specific type of ships due to their features suitable for the job such as speed and crew of the ship. Crude oil is carried in tankers while dry bulky goods are carried in conventional bulk carriers and container goods are carried out in containership.
There are different types of shipping operations that include longterm charters, spot charters operations and liner operations. Long term charters operations require that the ship owner knows the type of cargo to handle as well as the port that should be used for that purpose. Spot charter is an operation where an owner of a ship has a general idea of where the ship should be situated but does not have any knowledge about the type of goods to be used for the port. Liner operation states that the owner of a ship should have knowledge of the port or volumes of cargo to be used but the venue of the operation may change from one period to another.
The shipping companies may approach the business through taking into account several issues such as ...