Maritime Economics - Essay Example

Only on StudentShare

Extract of sample
Maritime Economics

In the Shipping Industry, many Ship owners have been resorting to strategies like concentration to sort out the problem that are occasioned by freight rate fluctuation. This concentration has allowed them to maximize their market shared, reduce the cost per volume and remain in competition for the industry leadership. There has been a fluctuation demand for shipping services that is also faced with a fluctuation in supply of the shipping services themselves. (Hoffman, 1998, p. 1)
On the demand side, many Shipping firms have believed that the best strategies for concentration will be realized when the merge the ships in order to gain from economies of scale. To that end there have been a series of mergers and acquisition that have lead to an oligopoly of the top 20 leading shippers owning over 50% of the industry business. (Hoffman, 1998, p. 1)
The beginning of 1990s saw the formation of Alliances in the World lines. The progress so far has been 10 big groups controlling more than 65% of the volume transport. With a target of lowering the shipping rates, the millions of containers have been criss crossing the high seas from one port hub to the next with the world inflation also at their trail. It has been estimated that the biggest ship can transport more than 8.700 TEUs. ...Show more

Summary

There are two major reasons why shipping companies have been merging or forming alliances. The first is to access the bigger market share that come with volume and efficiency. The second is to access reduced shipping rates due to ability to match the supply of ships to the volume demand that will eventually assure the liners of economies of scale…
Author : jimmykirlin
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Maritime Economics"
with a personal 20% discount.
Grab the best paper

Related Essays

Maritime Container Cargo Scanning
The aftermath of this attack was a revolution in the security measures of American entry points. There was marked increase in the screening of passengers in American airports, together with air cargo. Ports of entry were not left behind. Policies were formulated that ensured that any passenger or cargo that is getting into the American soil has to be thoroughly screened before release.
15 pages (3750 words) Essay
Maritime Economics of Australia
(Evans J, 1990, p. 78) The Australian owned mercantile navy continues to lead in the early fraction of the 21st century. The nationwide flag, on the other hand maintaining one of the uppermost seats worldwide as far as tonnage is concerned. (Stopford M, 1997, p.
10 pages (2500 words) Essay
Maritime low
It is, thus, that each shall now be discussed in turn and as they have been defined by both the Merchant Shipping Act, 1995 and case law, or decided cases. The first fact which must be determined when assessing maritime claims is whether or not the vessel in question was in danger.
7 pages (1750 words) Essay
Maritime Transportation Industry Essay
Thus an industry connected with maritime transportation remains a global economic pivot. Economics, like other social life, does not conform to a simple and coherent pattern(Galbraith 1958)2. However, a striking pattern of the maritime transportation industry has been its cyclical nature of highs and lows which during times of lows appear to many as a industry in recession or some would call a 'sunset' industry.
4 pages (1000 words) Essay
Maritime Economics
particular, this research paper focuses on exploring the indicators that are used by the shipping companies for the reason of assessing their respective performances. Furthermore, the paper also investigates the effects of the European debt crisis on the market of sea freight
9 pages (2250 words) Essay
Maritime Economics
The key strategic elements for building competitive capabilities on liner image, profitability, marketing, and management addressed in this report. 3 Issues related to logistics services are covered in this report
9 pages (2250 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT