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The Maritime Economics Components

An Overviewof Maritime Market


Associate Professor PhD POPA CATALIN
Mircea cel Batran Naval Academy
Maritime Economics
That side of economics science in charge
with maritime transport activities reasearch
and study, in order to provide useful working
tools of in this specific area of knowledge.
Economic enterprises that carry on naval
transportation activities, implying in the
demand and supply market game, aiming to
get profit from an efficient
resource blending in terms of
economic capability
Naval Transportion
economic activities
MARITIME ECONOMICS DEFINITION
TRANSPORT IMPORTANCE IN ECONOMIC CIRCUIT
MANUFACTURING ENTERPRISES
FOREIGN TRADE COMPANIES TRADE COMPANIES
TRANSPORT COMPANIES
LOGISTICS ENTERPRISES RETAIL CONSUMPTION
PROCUREMENT CHAIN
Maritime transports advantages:
the cheapest meaning of transport;
less pollutant;
biggest quantities;
developed in free area of international seas;
proper standardization.
Frompull to push logistics
Transport integration in supply chain
MODULE I
MARITIME TRANPORTATION COMPONENTS
Maritime Economics components
Ships as the meaning of transport
Freight cargo (goods) as the transport object
Ports as the operating location
Maritime Actors as transport subjects
Legal framework the transportation rules and contracts
Ships naval transportation meanings
Ships technical features:
flotability,
maneuvering and self navigation,
safety of people and goods,
propelling systems,
operation capabilities.
Economic framework of operating performance:
Speed, weather conditions;
Ship consumptions;
Time restriction;
Quantity restrictions;
Logistic matters;
Port activity performance.
Ships naval transportation meanings
Ships naval transportation meanings
THE FREIGHT CARGO
THE OBJECT OF MARITIME TRANSPORTS
The cargo importance consists in its:
quantity;
quality;
fluence;
frequency;
ciclycity of demand.
Types of navigation:
Tramp navigation;
Liner navigation;
Cruise line.
PORT ACTIVITIES
a. SHIPS SERVICES:
shipbuilding yards,
ship repairing and maintanance serrvices;
ship bunkers brokerage;
operation services: towage, pilotage, quayage, utilities.
b. GOODS SERVICES:
freight operation on loading/unloading procedures;
containership services;
packing procedures;
storage or other goods services.
ADDED-VALUE SERVICES:
customservices, insurance, brokerage,
goods manufacturing.
MAJOR PORT FUNCTIONS
LOADING AND UNLOADING CENTERS;
TRADE/ECONOMIC/FINANCIAL FUNCTIONS;
FREIGHT SERVICES ADDED VALUE CENTERS;
LOGISTIC CENTER ON HINTERLAND;
SOCIAL, PUBLIC, ECOLOGIC FUNCTIONS.
PORT ACTIVITIES
Port Community:
Public institutions and port authorities,
Port and naval operators,
Enterprises in hinterland;
Stakehorders (as investors, brokers, agents or insurance houses).
Major Types of Ports:
Service ports - managed and operated by public institutions;
Tool ports private operators but managed by public authorities;
Landlord ports public-private port;
Private ports is satisfied the private interest.
The influencing factors in port activity
Influencing factors
Freight demand in region
Socio-economic development Port development
Port geo-position
Private Service
Ports
Tool Ports
Landlord Ports
Service Ports
Main actors implied in shipping industry
SHIP-OWNERS Shipping companies ;
CHARTERERS/ EXPORTERS the transport clients;
BROKERS for freight, ships, assurance, services;
AGENTS for services, operation, ship chandlers;
PUBLIC INSTITUTIONS: authorities, stock exchange
institutions;
MARITIME MARKET: freight, ships selling, wrecking.
SHIPPING COMPANIES MANAGEMENT
- the managerial components -
Contract management;
Freight (market) management;
Operational management;
Technical management maintanance, repairing;
Financial & economic management;
Legal management;
Human resources internal or by crewing.
SHIPPING COMPANIES TYPOLOGY
Tramp companies;
Liner companies;
Cruiseline companies;
Wide specialized maritime companies;
Specialized maritime transporters;
Ultraspecialized maritime transporters;
Holding companies: one ship-one company;
Branch naval companies within corporations.
LEGAL FRAMEWORK
International conventions or agreements as :
SOLAS, STCW, LL, MLC, ISM, ISPS.
Contract agreements major contracts in maritime transport:
Voyage Charter;
Contract Of Afreightment;
Time Charter;
Bare boat charter.
MODULE II
MARITIME MARKET COMPONENTS AND
EVOLUTIONS
Maritime market components
Freight rates market;
Ship building market;
Second-hand ship trade market;
Wrecking market;
Port services market;
Seagoing labor market;
Added value services (for goods and ships).
Price mechanismon maritime market
Factors that influencing the maritime trade
DEMAND
Global economy
Maritime trade
Transport route rate
Ocassionally shocks
Maritime transport cost
SUPPLY
Global Fleet
Fleet productivity
New ship buiding
Wrecking industry
Freight rates market
The maritime market structure
Ship trade market
cash
cash
CHARTERERS
Freight market
SHIP YARDS
BUILDING
Owners
Cut wreck
business
Shipbuilding
market
Wrecking
industry
Business
environment
cash
cash
Cash Transport
New
ships
Nave vechi
Ship deployments
Economy
Business cycles in
maritime industry
The economic
growth determine
maritime trade
increasing
Maritime trade
Oil Oil products Coal Containers Iron, steel Grains
Transported quantity/ distance (tons/miles)
Factors ntmpltori
Goods owners
decision
Costs transportului
DEMAND
FREIGHT MARKET - SUPPLY/DEMAND MECHANISM
Ship-owners
decisions
Ship trade
market
Fleet productivity
Global fleet
New ships input, ship cuts output
Operation costs are increasing by ship age
Ship building
Added values
Financing
policies
Supervision
and legal
framework
Trade
balance
SUPPLY
MODULE III
MARITIME MARKET EVOLUTIONS
- Statistic overview-
International maritime market issues
International seaborne trade;
Fleet evolution structure, volume;
Freight market & maritime costs;
Ports evolution and development;
Regulatory and legal frameworks;
Sustainable shipping future development.
International seaborne trade
Maritime transport is the backbone of international
trade and a key engine driving globalization.
Around 80% of global trade by volume and over 70%
by value is carried by sea and is handled by ports
worldwide;
These shares are even higher in the case of most
developing countries.
Synthesis main statistical ideeas
world seaborne trade grew by 4 % in 2011, taking the
total volume of goods loaded up to 8,7 billion tons;
world fleet continuue to expand recording an increase of
37% in last four years, reaching 1,5 billion dwt;
freight rates in 2011 and 2012 continuue to be on low
levels, unprofitable for ship owners;
Container throughput get an increase of 5.9% touching
the level of 528 millions TEU.
World economic overview
While growth in developed economies weakened in 2011, developing
countries continued to drive world economic expansion and to
account increasingly for a larger share of world GDP.
WORLD SEABORNE TRADE
Preliminary data indicate that world seaborne trade grew by 4% , based on dry cargo
volumes increasing up to 5,6% (containers and najor bulk trades up to 8,6%)
International seaborne trade by cargo type
World seaborne trade in period of 1999-2012
World seaborne trade in period of 1999-2012
World seaborne trade in period of 1999-2012
Global container trade in period of 1999-2012
World fleet structure by vessel types
New container ships deliveries
World fleet age evolution
Global share of foreign-flagged fleet
Foreign and national ownership of top 30 fleets
World tonnage new orders
Freight rates statistics container shipping
Freight rates statistics daily tanker time charter
Freight rates statistics BDI evolution
Cost of maritime transport by components
Top 20 port operator in containers
Seagoing labor market
The evolution of seafarers demand embarked under EU flag in 2011
Seagoing labor market
The evolution of seafarers by region in 2012
Seagoing labor market perspectives
Thank you for your patience and
good understanding!

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