Got a tricky question? Receive an answer from students like you! Try us!

Maritime Economics - Essay Example

Only on StudentShare
Author : jimmykirlin

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…

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. ...
Download paper

Related Essays

Maritime Container Cargo Scanning
To this end, congress introduced legislations that called for the screening of all cargo that is bound for American ports. Customs and Border Protection (hereby referred to as CBP) was mandated to introduce measures that will ensure that any shipment likely to conceal weapons will be screened before been loaded to a ship bound for any American port. Thus, the screening was to be done at the port of origin. This was enshrined in the American statutes on August 3rd, 2007. The then American president, George W. Bush, was the one that signed it.…
15 pages (3765 words)
Maritime Economics of Australia
88)…
10 pages (2510 words)
maritime low
This means that in order for there to be grounds or justification for a salvage operation, or effort, it is imperative that a vessel be identified as confronting imminent pr potential peril. The danger, or peril, referred to here implies the actual, imminent or potential confrontation of conditions which would, or already have, exposed the vessel to the threat of loss, destruction or deterioration. Not only that but, for salvage to be justified, the vessel in question cannot have the situation under control. Quite simply stated, if the supposedly endangered vessel has threat under control,…
7 pages (1757 words)
Maritime Transportation Industry Essay
The present slow down of the industry in the developed world gives rise to this pessimism however, the forecast for the developing world produces a completely contrasting picture.…
4 pages (1004 words)
Maritime Economics
Maritime economics refers to the business of shipping which is considered to be quite intriguing. The shipping industry which marked its commencement with the transportation of cargoes has been witnessing increased significance owing to the related advantages and prospects in the field of international development (Cullinane, 2011). Shipping is considered to be a service based industry that is believed to grant the sustenance with regard to the global trade. The subject of maritime economics is believed to have developed and grown based on the study that is supposed to relate to the past…
9 pages (2259 words)
Maritime Economics
h is to provide rapid customer response, location of services are convenient for access, and utilize up to date information technology to improving service operations (Osler 2012). The paper also intends to analyze longevity of technology based on competitive advantage and their importance and view of how to improve the competitiveness. 3…
9 pages (2259 words)