Dry Bulk Strategies and Information - Essay Example

?DRY BULK SHIPPING COMPANY REPORT IDENTIFYING SHIPPING DEMANDS AND SUPPLY FACTORS IN 1ST – 31ST JULY ANALYSIS REPORT FOR OPERATIONAL MANAGER First ofall I would like to thank the members of the committee that assisted me in meeting, discussing, and determining what is the most appropriate information that is relevant and that the operational manager needs to know about dry bulk shipping, the shipping demands, as well as, supply factors mentioned from the information that was provided for the month of July fiscal year 2011. Reason for Report: The overall reason that this report has been prepared is for the operational manager of Gibson’s Dry Bulk Company who has asked me to lead Gibson’s committee leaders in reviewing the documentation that I received in Maritime Economics and Gibson’s Dry Bulk Report for the fiscal year 2011. I will touch and elaborate on the main issues I was asked to analyze which is to identify and explain the shipping demand and supply factors in the July 2011 dry bulk report. Details Overview: The market for Cape decreased gradually throughout the month of July, however Panamax and Supramax and their vessels outdo those of the Cape. There was a notice of the Baltic Exchanges’ average 4TC profits for Cape-like ships declined from $12,372 at the end of last month to a surprising low of $9,408 at the end of July. Likewise, Panamax 4TC percentage demolished from $12, 823 to $12, 060 and Supramax went from $13,161 each day. Crude steel manufacturing in June was 127.7m tons and 1 year ago was at 118.3m. Noted congestion: Findings that Brazil ore ports because of the abundant decline in the sum of vessels and the time spent waiting on deliveries, however some improvements have been recognized in the material at the coal port of Queensland including less traffic. Europe steel pricing goes unaltered but there was a minor increase in only China. Iron ore imports for June in China approximately 51.1m tons and 47.2m 1 year prior. Brent and W.T.I. crude oil costs expanded more so by July 29th with W.T.I. closed at $96 and Brent at $116/bbl. Improvement in coking coal accessibility with enhanced output from Queensland and spot steam coal costs stayed the same for the most part. 10% increase in grain costs due to buyer anxiety on US grain forecasts. Since the increase in Brent cost Bunker cost increased as well. Costs for Rotterdam at the end of July were $657/mt IFO 380cSt and at the end of June were $615 and with MDO it was $972/mt while $910/mt in June. Additional information: Concluded findings of Gibson report: Service marketplaces continue to have a little anxiety. For 1, the investment and liability crunch in the West has gotten worse. Massive EU monetary aid was intercepted by Portugal, Greece, and Ireland with Italy and Spain not far behind within the countries noted in report that possibly need assistance, too. Brinksmanship been caused by amplifying countrywide dues within the US along with a deterioration in the rate of the US buck, and the stock market has slipped with a strong possibility that the US will lose its ‘Triple A’ position. The outlook on the budget for the West remains gloomy with mention of a likely double dip depression. DRY BULK STRATEGIES AND INFORMATION: Bulk Shipping Advantages: Modern day bulk: Even though sea shipping services of bulk goods started in the 17th century, and this particular strategy is a huge industry and progressing monthly, yearly with close to 9,000 different carriers competing in some way. Yet there are some concerns in this industry and how they need to be resolved. What strategies need to be implemented: Identify ways to reduce shipping costs through transporting bulk trade and raising the amount of cargo on these vessels because the larger more powerful ships have a lower unit cost and when these bulk items are lower so is cargo labor and room. Another concept we have transiting to is moving completely away from barrel shipments and use nonglossy wrap on bulk instead. We currently aim to include this innovative way of transporting goods an vital part of the global assembly method. Improvement is ongoing in the achievement on storage sites with better equipped storage material so goods can be stowed and remain sheltered. Efficiency handling: It is important to remember every time freight is moved it costs companies money. One method of attempting to lessen the amount of handling while cargo is in transit is to relocate plants to be more accessible and minimize the travel like moving steel mills by shorelines which can also minimize the amount of freight moved on land especially raw resources. Utilizing extraordinary output cargo handling impacts the overall expenses of this industry because it lessens loading/unloading, the time, and costs of it. Cranes will assist in dry bulk load/unloading for resources as heavy as iron and coal. Different mechanical ideas are under review to reduce handling and speed up shipping/receiving. Integration: More care needs to be discussed for all stages of this system by regulating units’ loads. Packaging is being reconsidered to use more effective wrap and material to secure freight which is known as containerization progress. Use of mediocre packages are used on smaller units that cost less. Optimization: analyzing acceptable size shipments for the buyer/seller and import/export route. If storage locations is able to handle tons the price for holding stock up to a year could simply surpass load monies. Products need to be delivered as close as possible to the time they are to be delivered so it can lessen the must for stocks. Importance and Roles: Shipping imported/exported goods is largest worldwide industry and the peak of economic activity, and must be considered in any crisis situation to have a back-up plan to minimize harm to costly ships because of its main order in transporting goods to their destinations. Countries who are unable to utilize transportation to import/export goods could only soar so high with certain natural resources and minerals that are strictly found in only certain parts of the world. The sea ships will continue to work with four similar marketplace arrangements which include commodities, cargo, secondary shipments, and new deliveries and transportation for destruction. Supply, Demand, & Freight: The profitable replica of the shipping marketplace which inspires repeated nature of the company and contains three concepts including supply, demand, and freight ratios because of the main elements that influence the supply and demand operations for sea transportation with the prominence put on bazaar changing aspects. Cost, Revenue, & Fiscal Accomplishments: The cash flow budget will be more particular when we view improved ways that ships have been and will be financed with four traditional scenarios as the system has in four key ways with equities, liabilities, investments, and chartering opportunities. Principles of Maritime Trade: Since shipping is better when trading is well, the main goals with these companies are to comprehend why countries buy/sell the goods they do market and the reasons behind these patterns especially when supply and demand fluctuates. The system has its own hypothesis for their explanations and one important variable is to consider natural resource type cargo business where 105 countries currently review the proof for an association among trade and land area, looking at population density, local natural resources, and what families are doing. We will continue to use the “Trade Development Cycle” and the connection between the sea trade and financial progress and new growth. Bulk Cargo & Economics: This concept is based on diminishing the cost of transporting raw solids because they have reformed the international budget. To have a healthy industry we must have a system with specified characteristics directed at future objects due to global issues as well as supplies and expansion of conveyance organizations for managing bulk consignments. Continuous Containerization of liner services is one of the meaningful industrial and modernizations today with faster deliveries with products obtainable nearly everywhere you look with the exception of some more regulated goods. Design & Ships: This industry thrives on making sure there is dependable merchant ships to deliver goods with three objectives including the layout of the transportable ship, which now is being reassessed for energy efficiency, with improved cargo containers, with efficiency that is operational and saves on costs in a blue print regardless of whether it is a liner vessel, liquid or solid, special, or for services more so than products. Conclusion: It is a definite plan to have Maritime projection and realistic market studies and the aims of Maritime economics are simple in explanation but complex and need consistent progress and growth. The implementation for safety is a priority, and adding shipbuilding and scraping to cut expenses and add these locations where needed, and when economic principles arise, there will be a debate of the technology along with correcting flaws in forecasting. The commercial decisions will be completely planned and selected assumptions on future moves so that maritime economics can make direct contribution to business decision-making that will recognize forecasts of future events. References Gibson. (2011). Dry Bulk Report. Gibson Shobrokers. 1(1), 1-30. Stopford, M. (2003). Maritime Economics. Routledge. 2 (1), 1-593. Read More