Current Trends in Shipbuilding, and Sales and Purchasing Activity
Department of Management, School of Business DEREE-The American College of Greece
Semester/Session and Year: Fall Semester2013
MG4226A1: Shipping
Management and Operations
First summative assessment: Major Written Project Level 6
Student ID:
10/30/2013
Examine the current trends in Shipbuilding and S&P activity. Explain the rationale behind these trends; evaluate them in the light of current conditions in the freight market and assess their impact. Table of Contents
2|Page
A. Introduction
The interest of managers and academicians has grown considerably about the concept and the use of trends in shipbuilding and S&P (Sales and Purchasing) activity since last decade. The disagreement of managers and researchers over the valuation and the use of existing trends in the shipbuilding and S&P sectors of management in shipping organizations have proved to be an issue in the shipping field.
Ocean shipping is considered to be a risky, but a worthwhile and well-paid business. Many of its students pointed out that shipping’s charter market might be a perfectly competitive market, with its barriers to entry being smaller in comparison to any other vast business and government regulations being rare and very difficult to be enforced. However, the long in advance time required for new ship buildings, coupled with the market character of chartered shipping, makes it vulnerable to violent global dynamic effects. The supply of shipping services can slowly adapt to fast changes in demand, thus the shipping market is overwhelmed by fluctuations leading to long periods of depressions, which are followed by booms.
The aim of this project is to examine the current market environment and define the conditions currently prevailing in the shipping market and discuss the developments that led to them. Moreover, it will identify the latest trends experienced in the shipbuilding and Sale &
Purchase (S&P) markets and question the existence of
Semester/Session and Year: Fall Semester2013
MG4226A1: Shipping
Management and Operations
First summative assessment: Major Written Project Level 6
Student ID:
10/30/2013
Examine the current trends in Shipbuilding and S&P activity. Explain the rationale behind these trends; evaluate them in the light of current conditions in the freight market and assess their impact. Table of Contents
2|Page
A. Introduction
The interest of managers and academicians has grown considerably about the concept and the use of trends in shipbuilding and S&P (Sales and Purchasing) activity since last decade. The disagreement of managers and researchers over the valuation and the use of existing trends in the shipbuilding and S&P sectors of management in shipping organizations have proved to be an issue in the shipping field.
Ocean shipping is considered to be a risky, but a worthwhile and well-paid business. Many of its students pointed out that shipping’s charter market might be a perfectly competitive market, with its barriers to entry being smaller in comparison to any other vast business and government regulations being rare and very difficult to be enforced. However, the long in advance time required for new ship buildings, coupled with the market character of chartered shipping, makes it vulnerable to violent global dynamic effects. The supply of shipping services can slowly adapt to fast changes in demand, thus the shipping market is overwhelmed by fluctuations leading to long periods of depressions, which are followed by booms.
The aim of this project is to examine the current market environment and define the conditions currently prevailing in the shipping market and discuss the developments that led to them. Moreover, it will identify the latest trends experienced in the shipbuilding and Sale &
Purchase (S&P) markets and question the existence of