TITLE:
The Investment Strategy and the Growth Policy of Greek Shipowners Revealed, 1946-2020
AUTHORS:
Alexandros M. Goulielmos
KEYWORDS:
Greek-Owned Shipping Strategy, Fleet’s Growth Since 1856 till 2020, Shipping Cycles, Long Waves, Impact of Technology on Cycles Frequency, Policy on Ships on Order, Acquisition Policy of 2nd Hand Ships, Theory of Perfect Timing in Ship Investments
JOURNAL NAME:
Modern Economy,
Vol.11 No.11,
November
24,
2020
ABSTRACT: Greek shipowners do not believe in forecasting shipping markets,
and are well aware of their cyclicality and volatility. We have
showed elsewhere that shipping is a game with jokers, which appear
suddenly and unexpectedly. After a long observation of the Greek owned shipping
(GOS) strategy, we found-out that it builds and buys ships larger and newer,
when a shipping cycle offers rock-bottom prices, and subsequently sells ships
smaller and older. We showed this with data and with an adequate number of
figures. We also found-out that technology has brought cycles faster in the
markets! We have also showed the growth of GOS since 1856, and especially since
1945. Greek ship-owners, with whatever cleverness they possess, they could not
beat wars, recessions and depressions, as showed, but they tried to get
advantage of them. Their timing was
not perfect, but very good, as the prices at which bought 1568 2nd hand ships were 86.5% cheaper (1983-1987) than in their peak price (1980). GOS
pursues a cost leadership
policy in all frontiers: economies of scale; economies of age; economies of low
capital cost; low depreciation, and rock-bottom prices… Greeks
proved that the 2009 crisis offered good opportunities, and they had the funds
required.