Maritime economics Essay Example | Topics and Well Written Essays - 750 words

Maritime economics - Essay Example 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 countrie s 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 c ost 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