Business and Market Exposure Maersk Line

The graph had shown that over the 50 year period, the value of imports and exports had drastically increased, showing that there was an increase in imports and exports.

For the total revenues for each vessel the freight rates for Tapioca and for manufactured goods are multiplied with the amount of tons that are moved from one harbour to the other.

Of the three forms of transportation, rail has the highest fixed costs, motor carriers the greatest variable costs, and air transport, the greatest variable costs of service and logistics optimization. Starting with rail, the cost structure has the highest fixed cost components, driven by infrastructure and terminal costs. Rail is therefore the most difficult to negotiate a lower transportation cost for, as the fixed costs form an inflexible pricing structure for retail service providers. The quality of rail service varies significantly across nations and regions as well, leading to greater variability in costs when a shipment moves across national and regional boundaries. Given the highly fixed cost structure of rail systems, there is significant room for improvement from an efficiency standpoint. The use of containerization is continually adding to greater efficiencies to this mode of transport (Jennings, Holcomb, 1996).

Once railroads were built, shipping by them became increasingly popular. Shipping domestically became cheaper and quicker, which elevated the U.S. economy. In Document E, the cost to ship by wagon is recorded to be twenty times the cost by railroad. Furthermore, the article describes wagon shipping “ was $1.77, while by rail it was less than a tenth of that amount.” Before the invention of the Transcontinental Railroad, trade was limited to wagons being driven for days on end. Few people considered the drive, so the price was high to ship. Besides high prices, canals were

Based off a financial analysis using the data Ocean Carriers has provided, the final recommendation is that Ocean Carriers should build a new ship out of its Hong Kong base where the tax rate is 0% and scrap the ship when it is 25 years old. Following this recommendation would be the only scenario where Ocean Carriers sees a positive net present value

Conditions have changed. Global trade has rapidly increased in both volume and value, reaching nowadays more than $4 trillion in 1997 (Daniels J.D., Radebaugh, 1998, pg. 529). Competition is fierce from all corners of the world. Failure at the global level can backfire and may consume existing brands and business relationships. At the same time, global opportunities have emerged that offer possibilities for growth, profit, and an improvement in worldwide standards of living.

Apart from the 4 factors ship type, DWT, ship age and gears, there are a couple of other factors which affect the ship price. They are

Therefore, when shipments decrease, the spot rate decreases substantially with demand while the charter rate is contracted and remains steady. In addition, the difference in the current spot rates and the 3-year charter rates can be explained jointly by the anticipated increase in shipping and decrease in average age of ships.

per year that the ship can make, the length of individual visits, and the volume of passengers

There are many different factors that play a major part in transportation for any company. The price of fuel is a major factor that determines some of the decisions that companies utilize. The weight of the freight in which they are carrying and how frequently they will be doing so. All these different things affect the price. This is single handily the biggest aspect that affect companies, and the primary way they make decisions. Wal-Mart right now is the best and they

1. Daily spot hire rates are determined according to supply and demand of the shipping capacity. According to the article, the supply of ships available equals the number of ships currently in the fleet plus any new ships added, minus any scrapings and sinking. According to Exhibit 2, there are a limited number of ships older than 24 years which are likely to be scraped. For those ships under the age group from 15 to 19, they will continue to provide supply and are not likely to be scrapped because a lot of them will get into the second hand market. The majority of the fleet is fairly young, and it looks as though an additional 63 vessels are on

Global social changes have also affected the way that Carnival Cruise Lines operates as well. As the global economy turns downward, the cruise industry continues to thrive (Global Demand for Vacation Cruises to Surge, 2012). This is due in part to the changes that they cruise lines have made. Cruises are now marketed as “get-aways from

limited industry dollar volume growth to just 3.5% annually over that same period. Historically, the

There was a reduction of transportation cost of 9% to € 0.29 per item. With a demand of 4065 units per week, they have a cost reduction of €6,062.65 per year.

Other section of buyers which may affect container line business are freight forwarders or clearing agents, with rapid expansion of shipping industry and import/