Maritime Economics

timer Asked: Feb 5th, 2019
account_balance_wallet $9.99

Question Description

Only to answer the three questions, no need to write abstract,introduction and conclusion

Unformatted Attachment Preview

Instructions 8. Your answer script should be 2200 words in total, ± 10%. You are required to include your word count on the title page. 9. Answers must be typed. 10. Question numbers must be clearly shown beside each answer. References MUST be provided in-text and in a reference list as per the Harvard 2002 style of referencing. Please also include a Table of Contents. However, there is NO requirement to include an abstract, introduction or conclusion. Attempt ALL THREE (3) questions. Page 1 of 3 Pages Question 1 Explain how short shipping cycles can be caused by changes in supply and demand in the shipping market. Provide relevant examples and industry information to illustrate your answer. [10 marks] Question 2 The International Maritime Organization (IMO) will enforce a new 0.5% global sulphur cap on fuel content from 1 January 2020. Use relevant examples and industry information to complete the following two tasks. a) Explain the impact of the new regulation on the shipping market from the economic perspective. b) Discuss the strategies shipping operators can take to comply with the new regulation. [9+6=15 marks] Question 3 Based on the attached article and relevant references, complete the following two tasks. a) Explain why U-Ming signed the 25-year Contract of Affreightment (COA). b) Discuss how the delivery of two very large ore carriers (VLOC) may affect UMing’s operations and the shipping market. [6+9=15 marks] Continued … Page 2 of 3 Pages U-MING ORDERS TWO VLOCS FROM QINGDAO BEIHAI U-Ming Marine Transport (Singapore), a subsidiary of U-Ming Marine Transport Corporation, has signed a 25-year Contract of Affreightment (COA) with Vale International SA of Switzerland. The COA is the biggest and longest commitment in U-Ming’s history and the total contract value is anticipated to be more than USD 600 million. In order to support the contract, U-Ming has ordered two 325,000 dwt very large ore carriers (VLOC) from China’s Qingdao Beihai Shipbuilding Heavy Industry. The two ore carriers will feature an LNG-Ready design for retrofitting to dual-fuel in the future. The vessels are expected to be delivered in 2020. U-Ming added that each vessel will be equipped with an ecoefficient main engine, SO2 scrubber features, digital optimization systems, and comply with the International Maritime Organization’s 2020 sulphur cap of 0.5% with effect from 2020. “The signing of this long-term contract has further enhanced the cooperation and relationship between Vale International SA and U-Ming. The COA will commence in 2020 until 2045 for transporting Brazilian iron ore to China. We have been able to secure a bigger portion of long-term charters with stabilized revenue and profit for the company,” a U-Ming spokesman said. The company added that the deal comes on the back of a significant recovery of the dry bulk shipping market in 2017, driven by higher demand from China and increasing iron production from mining companies in Australia and Brazil. “This COA is contracted to meet the iron ore demand growth especially in China and other developing countries; and with UMing’s prudent management and customer service oriented vision to create a win-win for both parties,” the company’s spokesperson added. According to Australia official estimates, the world iron ore total export in 2019 will reach 1.378 billion tons, a 7 pct growth as compared to 2017, of which Vale’s new S11D mine will reach a nominal capacity of 90 million tons per annum by 2020 with an iron content of up to 66.7 percent. The total iron ore export from Brazil in 2019 is expected to be 10 percent higher than in 2017. (Source: World Maritime News, January 31, 2018. Page 3 of 3 Pages ...
Purchase answer to see full attachment

Tutor Answer

School: Purdue University


flag Report DMCA

Excellent job

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors