International shipping plays a vital role in global trade given that 2/3 of the world's goods are transported by sea. The shipping industry provides a cost effective and practical means of transportation internationally of large volumes of cargoes.
The dry bulk carrier market refers to the transportation of homogeneous commodities in bulk. Dry bulk commodities are divided into two distinct categories, major bulks and minor bulks. Major bulks include iron ore, coal and grain, which are usually shipped on the larger size Capesize and Panamax vessels and comprise about 67% of dry bulk trade. Minor bulks are fertilizers, steels, sugars, cement etc., which are shipped in smaller more versatile vessels such as Handymax and Handysize, and comprise about 33% of the dry bulk commodities trade.
Dry bulk carrier ownership is fragmented with many owners and operators of shipping tonnage, including independent operators, state-controlled shipping companies and proprietary owners. Vessels utilised for transport of dry bulk cargoes are usually classified into four categories based on their carrying capacity in deadweight tons (DWT) (i) handysize (10,000-39,999 DWT) (ii) handymax/supramax (40,000-59,999 DWT) (iii) panamax (60,000-99,999 DWT) and (iv) capesize (higher than 100,000 DWT).
The shipping industry is highly cyclical, experiencing volatility in profitability, vessel values and charter rates resulting from changes in the supply of and demand for shipping capacity. Fluctuations result from the interaction of various factors between demand and supply. The demand for vessels is influenced by global and regional economic conditions, international trade developments, port congestion, trading routes and weather pattern changes, crop yields, armed conflicts, political developments, embargoes and strikes, demand for consumer goods, dry bulk commodities, and crude oil and oil products.
Supply of shipping capacity is mainly a function of the delivery of new vessels and the number of older vessels scrapped and is also affected among other things by port congestion and regulation of maritime transportation practices by governmental and international authorities.
Visit also:
armin's stock selection blog here
1 comment:
Virtual memory is something that I seemingly will never have enough of. It feels like megabytes and gigabytes have become an inseparable part of my every day existence. Ever since I bought a Micro SD Card for my NDS flash card, I've been constantly vigilant for large memory at cheap prices. It's driving me crazy.
(Submitted using OperaMod for R4i Nintendo DS.)
Post a Comment