Ocean Carriers Case Summary

The purpose of this paper is to analyze the economic situation of the company Macedonian Shipping and give a recommendation whether the company should use the motor vessel Tashtego as a freight tender beween Dar-es-Salaam and Zanzibar in East Africa or as a tapioca ship between Balik Papan and Singapore in the East Indies.

The guarantee of work, an excellent benefit that offers to employees and the quality of training program at the Seafarers Harry Lundeberg School of Seamanship are the reasons why I want to be a Merchant Mariner. A Merchant Mariner career provide an established job and the outstanding of income to the seamen moreover, it also offers a great benefit to cover their family. With the prospect of jobs demand a merchant mariner has opportunities for growth in the marine jobs and it has high level demand to serve the maritime shipping industry, particularly in the private sector like a cruise ship and cargo industry that operate around the world. These private sector depend on the Merchant Mariners to perform preventative maintenance on equipment and delivery cargo on time. Base on the world consumer and the US economy depend on cargo ship and Cruise ships to support gross domestic product.

2. Suppose a customer buys an iPhone from Apple for $500 on January 1, 2010. The cost of the iPhone to Apple is $350. Assume that the customer is entitled to upgrades over the next two years. Use the following financial statement effects template (FSET) to illustrate the financial statement impacts for Apple of the customer's iPhone purchase on the date of the initial purchase and at the end of each of the two years following the initial purchase under generally accepted accounting principles (GAAP).

Ocean Carriers is evaluating a proposed lease for a ship over three years starting in 2003. Currently, Ocean Carriers does not have any ships that are available to meet this customer demand. This report will assist VP of Finance Mary Lynn to make a decision on whether or not to commission a new carrier and how long to hold on to this asset.

The marketing strategy that Ricci has selected has many pros and cons. The cons are that it is highly targeted, easy to track, and highly informative. By being highly targeted, Ricci will be able to directly send advertisements to the specific target market based on the results from the feasibility study done by the consultant. Also, this will help Ricci find households that have already purchased related products in the past with the use of mailing lists. Since implementing a mail order marketing strategy is easy to track, Ricci will be able to easily calculate the return on investment. This strategy also provides the consumers with a great deal of information since mail ordering is highly informative. This type of strategy will allow for Ricci to send out an advertisement that consists of a picture of the product, detailed information about it, and a sales letter. They can also use the sales letter to offer special discounts and promotions as well.

* Taxation and salvage: Tax regulation in every country is different, so the company should consider it when calculating NPV. Also, it should clarify the depreciation expense and interest expense to

◦ If the asset group is tested for recoverability while it is classified as held

Lastly, an alternative that can be taken is to build relationships with various large companies with employees who make an income in the target range and make offers to company executives. This method would not downplay the company image because Cunard would be communicating directly with high-income executives and furthermore will not be making any public sales or advertisements. This method would create new potential customers who are directly in the target market of choice using the method of relationship building. This may also result in additional customer retention. This method can be used for both the four and five star ships. In order to attract the target market of the five star ships, Cunard can make an arrangement with a company to offer a deal with their luxury ships as part of a retirement plan.

(NSY) had been providing parts and services to the Mega-Yacht Industry since receiving their initial seed capital in 2000. The Mega-Yacht industry provided an attractive opportunity for NSY. Although the industry was small by comparison, serving only 10,000 vessels, it generated in excess of $1 billion in economic activity annually, divvied amongst the new build, and maintenance, refit and repair business sectors (Mark & Mitchell, 2003, p. 48). The industry’s supporting cast included captains and crews, owners, management companies, procurement agents, yacht builders and repair entities, brokers, and local husbanding agents. Although unknown to the firm at its inception, consultants in 2002 forecasted the mega-yacht industry would see annual growth of 6%, with the potential for even better numbers in the short-term (Mark & Mitchell, 2003, p. 48).

The reason is that the NPV of U.S. company for the 15-year project is $-8,180,953.79(US15) and the NPV value of Hong Kong company is $-403,998.93(HK15). In both circumstances, the company would lose money by selling it at 15 years.

1) Do you expect daily spot hire rates to increase or decrease next year? (5 points)

Perhaps the easiest approach to the acquisition of BoatU.S. is to leave BoatU.S.’s current demand and forecast planning untouched and separate from West Marine’s planning processes. This would be inexpensive and non-disruptive to the current corporate culture. The drawbacks, however, could be a slow steady decline in profitability and reliability of the BoatU.S. brand, hence the reason for the acquisition in the first place.

We expect the daily hire rates to increase from 2001 to 2002, but then to decrease overall in the long term based on the assessment of the consulting firm. The consulting firm based their forecast on higher demand in iron ore shipments. They claim demand in iron ore shipments has historically shown a strong correlation with charter rates, and we believe this makes sense. Vessel size, distance of route, and demand for ore/coal are drivers of daily rates.

5. From the firm’s point of view, the policy of not operating ships over 15 years old is designed to protect against uncertainty and to pursue a higher premium over the market by having more relatively young vessels rather than old ships. However, based on our calculation of the NPV of the project, under the assumption that the company will continue to operate the ships until the 25 years of service, the results

According to Waters (2010) water transport has not been used to it’s full potential therefore there has been a decline in sea transport, this is due to the lack of proper terminals. But according to Harrison & Fichtinger (2013) containerised ocean transport has become the lifeline of nearly all global supply chain, because of the increased amount of global processes, outsourcing and offshoring. Mason & Nair (2013) states that today, there are more than 80% of world trade by sea, such as raw materials and manufacturing outputs are carried inter-regionally around the globe.