TITLE:
When in Shipping, Do as Greeks Do: For a Successful Creation and Management of a Shipping Company Dealing with Tankers and/or Bulk Carriers
AUTHORS:
Alexandros M. Goulielmos
KEYWORDS:
Six Issues in Shipping Business to Be Taken in Time, The Shipping Market Equilibrium, The Role of Distances, Anatomy of Maritime Costs, 2nd Hand Ship Prices in 2004, The International Labor Sea Cost, Crude Oil Prices, 1976-2011, Port and Insurance Costs
JOURNAL NAME:
Modern Economy,
Vol.12 No.10,
October
29,
2021
ABSTRACT: We have written-down our maritime experience and
especially we showed the fact that certain decisions have a substantial time
element. These decisions had to be taken before, if we had the proper
knowledge. We have showed what is this knowledge. One prime and important truth
is that a shipping company is cost-dependent, and the successful shipping
manager is the one who has obtained a clear and deep knowledge of costs.
Amongst costs, capital cost is the Goliath, and this is determined at the time
of purchase. In all maritime costs, a strategy can be applied as shown. What in
fact we have suggested is that a clever shipowner starts and stays in the 2nd hand markets! Given that certain shipowners are empirical, and only the new
generation has obtained postgraduate education, and for our students, we
provided an analysis of the shipping market mechanisms. A great lesson is that the
price for shipowners is given, and only cost has to be adjusted. Unfortunately,
since 2008, shipping markets remain depressed at 3199 units for the BDI in
23/07/2021 against 12,000 units’ top. We showed something unbelievable for
maritime history, which is that in 2004 a 2nd hand ship priced $53m
more than the new-building one!! The crew cost has attracted our attention as
the role of shipping is important to provide employment to nations and
especially to poorer ones to the extent of 1.89 m persons. China could provide
the 89,510 officers missing in next 5 years for the 74,000 ships, if it so
wants, with rapid education in English. The important fuel cost was also
presented. Is the next shipping fuel the hydrogen, or the ammonia, or the LNG?
Can technical progress in shipping main engines bring a revolution? i.e., with
a new cheaper and environmentally friendly fuel? With a spot crude oil price of
Brent in 2011 of US$ 115 per barrel, the new fuel is a great hope! While the
speed of the vessels is a strong technological factor; this is unfortunately
connected to fuel consumption, as shown.