Nobody downloaded yet

Finacial crisis and shipping and ship repair Yards business - Essay Example

Comments (0) Cite this document
Shipping business is influenced by a set of factors, which could be classified under demand and supply which are factors affecting the shipping industry, and can be affected by derived demand. If demand for new ships and freighters changes, shipping services change too by increase or decrease according to higher demand for other goods…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.9% of users find it useful
Finacial crisis and shipping and ship repair Yards business
Read TextPreview

Extract of sample "Finacial crisis and shipping and ship repair Yards business"

Download file to see previous pages The Shipping industry is experiencing myriad problems and these problems have been created by the financial crisis, the financial crisis forced the banks to cut back on lending and the consumer spending contracted in many places. The same has made it very difficult to move goods from one place to another and there are very few goods these days that are being moved when compared to the time before the financial crisis.
The shipments of various buyers are stuck at the dock and as a result of which the material is deteriorating with each passing day. The letter of credit is very important when it comes to moving goods from one place to another. It is a must for the shipper to know when he will be paid for the goods that he loads in the shipment, which will be received by the buyer, but there is a lot of uncertainty that is affecting the shipping industry. Almost all the industries have been affected by the financial crisis and the case with the shipping industry is no different.
A typical discussion put forward by shippers is that unpredictable fluctuations in the shipping industry are expected, because booms are normally followed by recessions. However, the current gloomy financial circumstance the world is confronted with is the most difficult so far, and it hit the industry severely. Demand factors, such as prices of other goods, production costs, demand for other goods, the availability, and the big change in the cost of financing have played a very important role in the current downturn in demand for shipping, and freight services, including the decline for ship-yards new builds and repairs orders.
Some shipping companies have luck on their side. When the large Asian shipyards got overrun with orders in recently, and delivery times grew to up to four years, many small shipyards, especially in China, were simply created out of thin air. In many cases, contracts to build new ships were signed with these so-called Greenfield shipyards, which existed only on the drawing board. These shipyards no longer exist today, nor will the ships. Most of the existing Greenfield shipyards are likely to disappear quickly. This might benefit the big and financially strong Ship Yards, which might reflect in increasing seeds order to their facilities in the mid to long term.
On the other hand, supply factors are determined by the demand and freight services for shipping, along with the interest rates at the time. Suppliers went on seeking more and more excess capacity by ordering containers and new ships to meet the increasing demand. However the demand direction did not continue as was expected. The financial crisis has effected hard not only these shipping and ships building and ship repair sector, but also other related services as well.
Shippers in North America, Europe and Asia have been hurt most by the crisis. For instance, the contracted tonnage of containerizes cargo has went down by several millions of cubic feet. The annual reduction has been one of the most painful that business has seen. According to industry advisors and evaluators there would be a further reduction in demand for containerized cargo shipping will follow. The existing ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Finacial crisis and shipping and ship repair Yards business Essay”, n.d.)
Retrieved de
(Finacial Crisis and Shipping and Ship Repair Yards Business Essay)
“Finacial Crisis and Shipping and Ship Repair Yards Business Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Finacial crisis and shipping and ship repair Yards business

Global finacial crisis

...Global Financial Crisis The 2007, financial crisis was declared by economists after through evaluations. A similar crisis was recorded in the year 1930. The crisis was characterized by great threats of collapse of major financial institutions like banks and stock markets among others. Furthermore, majority of people lost their jobs and many major businesses closed as a result of the financial crisis. Decline in global consumption rate was estimated at trillion of U.S dollars. The global financial crisis started with a high liquidity rate in major global companies and financial institutions among others. Liquidity rate is...
10 Pages(2500 words)Research Paper

Twin Turbo Engine Repair

...(to increase the amount of charge) or sequential (to increase the pressure of charge) operation. Examples of cars using such engines are Toyota Supra and BMW N54 etc. The current paper addresses one of the major repair problems for a twin turbo engine. Overhauling a Turbocharger: Most of the turbocharger users prefer to replace the whole turbocharger assembly in case of a fault. This is because of the complexities that arise during the repair of the assembly. The most important challenge during a turbocharger repair arises due to the small size of the components. This makes the vital parts such as bearings, turbine and compressor blades, seals etc. inaccessible for the...
2 Pages(500 words)Research Paper

Finacial Analysis

...?Running head: Financial Analysis Overview Financial Analysis COMPANY OVERVIEW Proctor and gamble famously known also as P & G is an American multinational corporation that manufactures and distributes manufacture of consumer goods (household and personal products industry). Proctor and Gamble has Cincinnati, Ohio as its headquarters. It was formed in October 31st, 1837 through a partnership by William Proctor and James Gamble, who had married into the same family and was convinced by their father in law to become business partners which they did. Proctor and gamble operates in more than 100 countries and serves around 4 billion people tall over the world through their products of around 300 brands. It operates in...
6 Pages(1500 words)Research Paper

How the Global Finacial Crisis impacted Egypt

... How the Global Financial Crisis impacted Egypt The 2008 global financial crisis, largely driven by the United s’ financial sector turmoil and an unprecedented escalation of food prices, overshadowed previously witnessed financial crises in terms of both intensity and spread. A perfect example of an emerging market, Egypt’s economy was injured by the crisis, especially considering that the nation was in the midst of successful reforms since 1991 that had seen GDP grow by 7.2% in the fiscal year 2007/8 (Altintzis 1). The success of the reforms towards a market-oriented economy cannot be understated especially since they were carried out in the midst of structural challenges such as soaring budget deficits and occasional inflations... that...
4 Pages(1000 words)Term Paper

Finacial management

...Tenant's compensation 120 Running cost Rates 128 131 135 138 141 145 149 152 156 160 164 168 172 177 181 Repair 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 Utilities 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 Oppr-ty cost 295 290 286 281 277 0 0 0 0 0 0 0 0 0 0 Business costs 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 Cash outflow 796 848 841 834 828 613 610 607 605 602 632 629 627 625 8734 NPVof cash outflow5 782 805 772 739 709 507 488 469 451 434 440 424 408 393 503 Total = -8,732* *(also included: Fitting out, telecoms, removals - 250, Tenants' compensation - 120 which are the costs incurred at the base year) Option 2. Re-use of vacant governmental...
12 Pages(3000 words)Essay

Concrete Repair, Rehabilitation

...INFLUENCE OF SURFACE ROUGHNESS, WETNESS & CURING CONDITIONS ON THE ADHESION BETWEEN CONCRETES A Dissertation Presented to the Faculty of the Department of Civil Engineering College of Engineering Write Your University In Partial Fulfilment Of the Requirements for the Degree Bachelor of Science in Civil Engineering Submitted By: Write Your Name Please ABSTRACT Numerous strengthening techniques for concrete structures require adding of new concrete to existing old concrete element (Santos, et al., 2006). Some common examples include concrete overlays at highway structures, repair of corrosion damaged concrete structures where the deteriorated concrete is replaced with new one. The bond formed between the old and...
4 Pages(1000 words)Essay

How the financial crisis will affect the ship repair yards and shipping business

...How the financial crisis will affect the ship repair yards and shipping business? Discuss. Shipping industry is influenced by a completely different set of factors and these factors include both microeconomic and macroeconomic variables. Demand and supply factors affecting the shipping industry are different because it’s all about derived demand, i.e. the demand for new ships and freighters and therefore shipping services increase or decrease according to the demand for other goods. Shipping or/and freight services have been affected the most with prices...
4 Pages(1000 words)Article

Industrial Repair

...Industrial Repair Inc (IR) Industrial Repair Inc. (IR) is a successful company that has been running industrial machine repair business for the last 25 years. Although IR started its work in Hartford, its reputation for timely service helped the company to gain customers throughout the state of Connecticut. IR values its customers and usually sends a crew of two technicians to them as quickly as possible to fix problems. However, the industrial repair market has undergone tremendous changes for the past few years. Numerous competitors entered the market and customer retention has become the major issue for IR. The company management...
1 Pages(250 words)Case Study

Cruise ship business

...Cruise ship business in Qatar Cruise ship business in Qatar The cruise line business has posted an average growth rate of 8.2% back in the early 1980s to date (CLAI, 2010). International tourism has owed to these figures that are projected to increase in the future. According to WHO 2011, people travel for leisure, tourism business as well as recreational facilities. Cruise industry analysts reveal that the industry market capacity has been used up to 70% with a further 5% increase expected to be seen in 2015 (Tony, 2011). Such figures indicate that there is major potential to venture in this field. With its high economic score of 71.3,...
2 Pages(500 words)Essay

Ship Construction

...Part Panting stress in ships is caused by variations in the pressure of the water on the shell plating as the vessel pitches in the sea and normally occurs at the ends of the ship. The effect of this stress is concentrated at the bow of the ship when making the headway. On the other hand, the ship normally pitches as it sails in heavy seas when its bow rises over the crest of a wave making it emerge out of water completely and when it comes back, it is subjected to an impact called pounding. The ship’s hull plating and stern are most affected by the pounding stress. Pounding stress can be reduced by reinforcing the hull plating at the bow end of the...
3 Pages(750 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 Finacial crisis and shipping and ship repair Yards business for FREE!

Contact Us