StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Finance and risk management,Shipping finance - Essay Example

Comments (0) Cite this document
Summary
The shipping market was characterized by fluctuations and this discouraged financial institutions from participating in financing them. The following decades saw…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.8% of users find it useful

Extract of sample "Finance and risk management,Shipping finance"

Download file to see previous pages Financing the ship industry has always evolved with the prevailing market conditions. More investment has always been required in the industry above the owner’s potential to finance hence the need for banks. The industry has its strengths and weaknesses, there have been opportunities, and it has also seen threats. This paper examines the relationship between shipping financing and shipping markets, the major sources of capital available in the shipping industry, the strengths and weaknesses, opportunities and threats (SWOT) in the industry.
The shipping industry represents a substantial percentage of the world trade. The industry is one of the most effective forms of transport and the costs are relatively low. It costs 11 percent and 20 percent of the transportation cost on roads and rails respectively. If the business is doing well it can have a high capital return of about 25 percent per annum ( Nizam and Ghanem 15). Shipping industry is also a dynamic industry; there is continual investment in research and development of new technology. This contributes to the global technological growth.
This industry is cyclical and relies on the changes of the global market. This makes the industry to be uncertain. The industry also experiences a shortage of skilled labour and management because there are few people who are professionals in this field. The image of this industry is poor; people tend to perceive the industry to be archaic and therefore outdated. Vessels also cause pollution of the environment through emission of CO2 and noise.
There are initiatives to make ships more environmentally friendly. This will make ships more acceptable. There is also a long term plan to recruit, educate, and train skilled seafarers. This will close the gap pertaining to lack of skilled labour. There is an initiative to improve propulsion technology of ships through building bigger ships, nuclear powered ships, ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Finance and risk management,Shipping finance Essay - 1”, n.d.)
Finance and risk management,Shipping finance Essay - 1. Retrieved from https://studentshare.org/management/1613363-finance-and-risk-managementshipping-finance
(Finance and Risk management,Shipping Finance Essay - 1)
Finance and Risk management,Shipping Finance Essay - 1. https://studentshare.org/management/1613363-finance-and-risk-managementshipping-finance.
“Finance and Risk management,Shipping Finance Essay - 1”, n.d. https://studentshare.org/management/1613363-finance-and-risk-managementshipping-finance.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Finance and risk management,Shipping finance

Finance Markets and Risk

...? . What is meant by ‘systemic risk’ and ‘systemically important financial s’ (SIFIs)? Is separation of banking between retail commercial banking business and investment banking need of the hour?- An Analysis ( Word Count with Heading and references 2555) What is meant by ‘systemic risk’ and ‘systemically important financial institutions’ (SIFIs)? Systemic Risk Systemic risk is ushered by unforeseen incidents that amplify uncertainty unimaginably and damage the liquidity of the market at a rapid phase. Illiquidity results in “prices gaps” in respective markets and in the pricing of a particular asset. The related pressure later extends to the liquidity of funding of financial institutions around the world that are assisting those... ...
10 Pages(2500 words)Essay

The Likely Impact of the Basel II Accord on Shipping Finance

...stringent rules regarding financing or providing credit to various projects. Banks are required to consider the risk and return from a venture before giving credit. This has made the shipping industry consider alternative sources of financing because they are high risk than any other venture (Measures & Rosa, 2004). 2.3 Basel II and its Consequences With the publishing of the Basel II accord on regulation in international banking, arbitrage opportunities were opened for banks in enabling them to speed up their off balance sheet activities. Investment banks were permitted to voluntarily take advantage of changes in regulation so as to...
43 Pages(10750 words)Dissertation

Project finance and risk management

...?Project Finance and Risk Management 0 In order for a country to develop efficiently, it requires various companies to finance her projects, as the sector is too large to be undertaken by a single government. Project finance particularly comes in handy when there is need to economically develop the rural areas and empower the rural folk to be at pat with their urban counterparts. By definition, project finance is the financing of industrial and infrastructural projects based on the anticipated cash flows out of such projects rather than the assets and liabilities of the sponsors. This expression brings out clear...
7 Pages(1750 words)Research Proposal

Finance- maybe Risk Management

...Management?, n.d., p. 1). Research Aims: We would build up a positive hypothesis of the hedging behavior of value optimizing corporations. Hedging is treated by companies simply as a part of the organization’s financing decisions. The paper pays attention to the impact of the hedging strategy on the organization’s investment decisions. Our theory provides answer to the question- why some organizations hedge and others do not. The goal of hedging in risk management is to decrease the fundamental volatility of cash flows and curtail the likelihood of large losses. The current study intends to discuss this issue. Importance of the study: Risk provides the...
9 Pages(2250 words)Essay

Corporate Finance and Risk

...Corporate finance and risk Part a Outline of the company ‘Cheapmart’ is a large multinational company that operates a chain of discount stores across15 countries. Founded in 1960 by Mr. Todd Smith, Cheapmart is today listed among the fortune 500 firms and listed on the New York Stock Exchange (NYSE) since 1998. The retail chain employs over 50000 people across 300 outlets across the globe and maintains one of the most densely managed supply chains in the world. Cheapmart operates in individual countries under different names and brands although it is registered as a wholly owned corporation in each country that it operates. While Cheapmart has had a successful history in the United States...
12 Pages(3000 words)Essay

Risk management and international finance

...Risk Management and International Finance Risk Management and International Finance The internal rating based (IRB) approach isthe most effective means through which Basel Committee apply and approves its banking regulation rules. Therefore, it is vital to evaluate the IRB approach through historical data especially the business loan portfolio data. Moreover, the estimates will follow bank macroeconomics and loan related variables. Additionally, the report will include the calculation of value at risk (VaR) credit measures. This determination will employ the use of model based simulations. The changes in credit risks risk of banks and changes in buffer capital over time are also essential for this study. The main advantages... to financial...
6 Pages(1500 words)Assignment

PhD Finance - Risk Management Tools

...it is impossible for an organization to completely eliminate risks, it is not impossible to manage and reduce the impact of risks (Munier, 2012, p. 75). Therefore it is the responsibility of the managers to develop processes and policies which can assist in identifying the various risks facing the organizations as well as analyzing the risks. Frame points out that there are various techniques which can help in the management of risks in the organizations (2003, p. 59). The risk management techniques may include, formation of specialized committees to deal with...
1 Pages(250 words)Assignment

Construction Management - Finance and Risk Management

...Construction Management - Finance and Risk Management Contents Introduction 3 Role of Financial Management in marine construction industry 4 Role of Risk Management in marine construction industry 5 Importance of Risk management and financial management both in our family as well as in our organization 6 Tangible and intangible consequence without the application of risk and financial management 7 Efficacy of Financial and Risk management techniques (The Black Swan Event) 8 Application of financial...
15 Pages(3750 words)Essay

SHIPPING FINANCE , MANAGEMENT AND LAW

...globalization. Threats faced by giant automobile manufacturer contribute largely to the problems. Comparatively, the company strategy performs poorly in comparison with the other two leading manufacturers (Joseph, 2003, p. 126). The company ignores the fact that clients prefer fuel-efficient vehicles. The problem relates closely with lack of innovation in the company. The management does not have structures in place to encourage and embrace innovation form from employees (Eichhorn, 1997, p. 28). The situation remains unique considering the fact that other competitors give special attention to innovation. 5 The performance of Maritime against other top players in the market 5 Table 1 5 Comparing the performance of...
6 Pages(1500 words)Essay

Construction Management - Finance and Risk Management

...Construction Management - Finance and Risk Management Introduction The topic of discussion in the following pages is risk management and financial management. The description is a critical reflection of what I think is the attitude of my countrymen, my family and an organization to the matters of risk management and financial management. Since I do not have any work experience I have chosen the national construction industry. The construction industry in Turkmenistan is the third largest industry. After the two industries of agriculture and gas and petroleum sector the...
14 Pages(3500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Finance and risk management,Shipping finance for FREE!

Contact Us