The Maritime Tanker Industry

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.

Since scenario 1 has a negative NPV, we recommend Ocean Carriers to not invest if there is a 35% tax rate in the US. In scenario 2, where the ship is built in HK with a 0% tax rate, then we recommend that Ocean Carrier invest in the ship. This analysis shows that working the ship at a 35% tax rate will not yield a profit on the investment even 25 years into the future, given the increasing costs of survey preparation and the diminishing number of days that the ship is actually able to make money and be commissioned.

of oil shipped from Alaska is carried in aging tankers with higher risk of leaking. Only 3 of 26 have double-hulls and those are more than 20 years old. There are three main oil

The company’s goal is to provide regular sailings from the port of Antwerp to the port of Bilbao in order to alleviate the traffic congestion caused by the moving of containers by road and rail. Based on our research and projections, the tonnage capacity of container vessels in the EU in the near future will not be adequate to satisfy demand for shipping. By entering the shipping sector and establishing our presence in the specific route, we anticipate gaining substantial profits from the rising demand for shipping services. Furthermore, the quality of our vessels and the quality of the services that we plan to offer will offer us a significant competitive advantage over our potential competitors in the sector. The anticipated EU programme will also be beneficial to our operations, since it will increase demand for shipping services, which promote environmental friendliness and cost & time efficiency and it will offer incentives for the construction of better infrastructure, which in turn will enable us to provide an even better service. The project demands $175m with a Debt to capital of 60%. The cost of Debt is 6.5%, a cost of capital of 12%. The break even TC Rate is $ 6,825 on 2009. This project gives a NPV of $30.9m through the Discounted Free Cash flows to the firm and offers an average return on Equity of 13%.

This case analysis explores the possibility of Breezy, a leading supplier of carburators and air filters in North America, the possibility of developing offshore busines in countries where car manufacturing is growing. The report is structured as follows: First, there are five important questions that Breezy must consider and ask itself before developing a relationship with a new customer. After Breezy decides to go offshore, it will have to go through the negotiating process, which involves five steps. Breezy then, must have capabilities of how an offshore business is organized, consider the many different costs and risks involved in the implementation and decide how it will finance the project. The report also talks

Anthropologist and author of Global Outlaws: Crime, Money, and Power in the Contemporary World, Carolyn Nordstrom seeks to explore the connection between goods, money, and power in the global market of the twenty-first century. Seeking to explore “invisible (illegal) realities of global flows” (Nordstrom, xi) across multiple different continents, from the national to the global arena, reviewing traditional conceptions of the economy to fit twenty-first century realities. All whilst trying to determine who the real criminals, if there are any, in this globalized economy where “the line between legality and illegality is often blurred and when extralegal profiteering may also bring positive development and enable survival.” (Nordstrom, xiv)

We think that daily spot hire rate will likely decrease next year. There are two reasons. First, there are 63 new vessels scheduled for delivery in 2001 to increase the supply of vessel and only few old vessels need to be retired, while the demand will not increase because imports of iron ore and coal would remain stagnant over next two years. Second, exhibit 5 shows that avg. spot rate of 2000 was higher than the rate of previous years and avg. 3-yr charter rate. In addition, the market will seemingly go up after two years. Therefore, ship owners should hope to sign short-term contract through using lower daily spot hire rate rather than locking low daily high rate for a long period.

Shippers Ltd. had the following inventory situations to consider at January 31, its year end:

This sector has so far been dominated by public sector companies and now is getting a tang of liberalization. The government has spoken about the export of refined oil products as this provides a value addition in reducing the oil prices on

Newport News Shipbuilding and Dry Dock Company (NNS) performs designs, construction, repair and overhaul for ships, primarily for the United States Navy. On February 1987, the Defense Contract Audit Agency (DCAA) issued a subpoena duces tecum to NNS demanding financial statements, federal income tax return, Virginia income tax return and associated schedules for the period 1 January 1983 to 1987. NNS provided the state tax returns to DCAA but withheld the reminder of the subpoenaed documents claiming the demand was unlawful and unenforceable and filed a declaratory judgement action which the Government moved to dismiss. The district court denied DCAA’s order for the documents and the Government appealed this decision.

Apparently, all adjustments are taken after each horrible tragedy and the preventive action still not implemented holistically. However, when any new conventions are adopted, they probably will take from 2 to 5 years to enter into force and be active. Well, in this small paper research I would like to discuss the regulations as well as rules that have been updated as a direct response to these kind of horrific accidents. In addition to, what impacts the new safety regulations and standards rules have had on lowering the risk pertained oil tankers incidents.

Despite extensive renovations and unsympathetic additions to her superstructure, The Emerald, as she was known for her final years of service, was in fact a significant ship in maritime history. She was one of the last American-built passenger ships and steamships, able to survive years of obscurity and the bankruptcy of two owners to have a long career.

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.

Ocean Carriers Inc. was approached in January of 2001 with a contract proposal for the leasing of one of their ships for a term of 3 years beginning in 2003. Ocean Carriers currently has no ship to accommodate the customer. To commission the construction of a new vessel would take 2 years from start to completion. The average rate in the spot market is $22,000 per day. Ocean Carriers deployed a younger fleet than average carriers and generally earned a 15% premium over the average daily rate placing them in position to capitalize in strong economies. However, the industry is volatile and suseptable to extremes both low and high. Many ship owners sought to sign contracts with time charters in order to shield themselves from the swings

Every firm would love to invest in shipping industry due to large profits involved. However this would seem easy but practically it is lot more difficult and virtually impossible to establish in container line business. The problem pertains to large capital investments in form of vessel and container procurements and risk of operating vessels. Even if we take the examples of biggest companies