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Running Head: Maritime EconomicsQuestion And Answer
Maritime Economics1Table of ContentsQuestion1:........................................................................................................................................2Question 2:.......................................................................................................................................4Question 3:.......................................................................................................................................7Conclusion:......................................................................................................................................9References......................................................................................................................................11
Maritime Economics2In this present paper, we will discuss the question and answer related to the maritime economicsand the questions all related to the freight rate, cargo shipping, and the container shippingmarket.Question1:One of the famous container shipping markets is not that much fruitful since fiveyears. The things are getting the worse day - by-day and the earnings are quite fluctuating, andthe several factors are responsible for this. (Grammenos Costas et al. 2013) We can't blame onefactor for this there are so many factors that adversely affect the demand and supply of thecontainer shipping market. This industry assumes the good times, and now they are goingthrough very difficult time. It also assumes the untenable increase in the demand. But now theproblem is that people thing that it is not that much required. (Nguyen, Hong-Oanh, et al.2016 )These problems which container shipping market are facing are actual and compelling,and these problems cannot be solved by one company. Buried below is one of the challenges thatare faced by the container shipping market. The networking, operations and commercial are thefurther challenges that are really crucial for the container shipping market .We can take anexample of sales that sometimes carriers confused with the charges that are received by thecustomers, and sometimes they get failed in asking for the premium of the services in which theshippers need to pay the more. (Nguyen, Hong-Oanh, et al. 2016 ) In fuel, there is more ofconsumption than to the requirement. In the operations, they just follow the routes that cost to thecontainer shipping market. In the networking system, the uses the outdated models and they justdon't use the powerful methods such as algorithms to reduce the cost. Using the new innovations,initiatives and creativity model help the company to drag the maximum profit and increase theirmarket to 10-20%.
Maritime Economics3The following steps can be taken in order to boost up the sales and bring the container shippingmarket back to their profit which is as follows:Boost up the commercial system: First of all, there is an urgent need to ship from thecost-plus approach to the value creating things and the container shipping shouldemphasize on the paying all the lines, and they should provide the best services. Theyshould go for the comprehensive commercial programs that are to focus from thebeginning to the end and help in bringing the best management things and also work onthe good quality.Making the operation activity stronger: We should focus greatly on the operationspart, and they should be under the great control of the carrier .They will prove to be oneof the best sources that will help in both the periods whether it is profit generating or not.An urgent need to bring the bunker management and it will help in creating the savingstoo. Moving to the procurement part and the consumption should be reduced. We shouldalso focus on the utilization of the assets. Proper utilization of the assets should be used.Better networking and fleet services:There is an urgent need for the networking andthe fleet services. There should be two moves that help them to increase by 6 to 12 % andgetting better .There are two options that are lease and the owning, but we go for theleasing . Although leasing provides us the flexibility benefits sometimes it cost muchhigher and increases the cost. Shippers should make bold decisions regarding the deliverythat is to do directly or making the interim hub. Leading lines help in solving the biggestchallenges and resolving these biggest conflicts.Building the cross team functions:There is a huge requirement of building the strongcross-team functions, and it will help in building the best decisions and also works on the
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