Dry Bulk Shipping and Logistics Challenges

This assignment examines the current state of the dry bulk shipping industry. It highlights a decline in global shipments, contrasting with previous growth rates. The focus is on the impact of this decline on shipowners and their balance sheets, drawing upon data on contracted trade volumes and major commodities. The analysis sheds light on the challenges and pressures faced by the dry bulk shipping sector.

Maritime Transport and Logistics
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Abstract
The study intends to review ISI journal and take into consideration the publications in the topic
of maritime transport and logistics issues for shippers, ship owners, port management, terminal
operators and all related parties. The main depiction on the transportation issues has been
considered with insolvencies and liquidations among the various types of the shipping
companies. It has been also observed that the maritime freight rates are associated to the
unpredictability and descending movements and record low levels of the dry bulk cargo. The
operating cost has been seen to be mainly weak due to higher demand and high fleet growth with
the effective fleet application and intensified deflationary pressure on the cargo rates in most of
the markets except the tankers.
Keywords:
Maritime Logistics, Maritime Logistics Issues, Maritime Supply Capacity Management,
Maritime Logistics Issues Risk
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Introduction
The Maritime Transport has been able to consider the understanding of the long term
growth projections for the maritime and seaborne trade which are seen to be positive in nature.
There have been several types of the opportunities which has been able to state on the specific
aspects of the generation of income and promote foreign trade. The main aspect of the report has
been able to review ISI journal and take into consideration the publications about the maritime
transport and logistics issues for shippers, ship owners, port management, terminal operators and
all related parties (Losey-León 2015).
Hypothesis set for the study
As the study is mainly based on deductive research and the hypothesis is able to state:
 Null Hypothesis (H0): The present issues in maritime transportation has not made a
severe negative impact on the shipping segments
 Alternative Hypothesis (H1): The present issues in maritime transportation has made a
severe negative impact on the shipping segments
Objective:
Some of the main objectives of the paper has been seen with the discussion of the following
issues:
 What are present issues in Maritime transport?
 What are the market risk involved in maritime logistics?
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 What is effect on demand and supply due to the issues present in Maritime
transportation?
 What are the impact of Maritime transport on the shipping segments?
Discussion
Ports and shipping industries are currently discerned to be encountering profound period
of change. With particular relevance to the shipping sector the chronical overcapacity and the
shipowners are constantly seen to be in trouble with capturing demand. The shipping business is
considered to be capital intensive with the freight rates unlikely to be considered as short term in
nature. The main consequence of this to the shipping has been further seen to be discerned in
form of having specific nature of the difficulties which is associated to generating reasonable
profit. Analogous ports are able to cope up with the unprecedented levels of competition as a
result of slowing down of the world trade and emergence of the concerns mainly associated to
over capacity. The terminal operators have been seen to be rediscovering the market risks and
services of the shipowners services packages which has been rewarded rediscovering of the
market risks and struggling offer given to the service packages of the shipowners and the same
has been reflected in their own balance sheet. Based on this perspective of the top managers, ship
agents, commercial executives, ship agents and brokers enforcing to explore a new way of
business for making the marketing policies in terms of the segmentation, market positioning,
service levels, relation with stakeholders and value proposition solutions (Nguyen 2013).
As per the reports published in 2015, majority of the shipping segments has been seen to
be based on the depiction of the rates which are seen to be based on the remarkable low levels of
the freight rates and feeble earnings. These earnings are mainly seen to be triggered as a result of
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the weak demand and oversupply of the new tonnage. The container segment freight rates have
been seen to be steadily decline the lower amount of the market prices (Nuzzolo et al. 2016). The
lower amount of the freight rate levels has been further discerned with the weakening demand of
the larger transport container vessels. In the consideration to deal low freight rate and decreasing
the losses the carriers continued to consider the measures to improve the efficiency and optimize
the operations. The key measures have been discerned in form of “cascading, idling, slow
steaming, and wider consolidation and integration”. Some of the other strategies have been seen
to be discerned to be based on the restructuring with the new alliances (Niculescu and Minea
2016).
As per the data in 2015, the maritime freight rates have been seen to be identified with
the various types of the factors which has been seen to be associated to enduring the
unpredictability and descending movements and record low levels of the dry bulk cargo. The
operating cost has been seen to be mainly weak due to higher demand and high fleet growth with
the effective fleet application and intensified deflationary pressure on the cargo rates in most of
the markets except the tankers (United Nations 2014).
The main form of the pattern of the low rates has been able to benefit the shippers for
translating lower freight costs. The net influence of the lower freight cargo has been further seen
to be discerned with the various lower amounts of the freight costs and the same has been
benefitted by the shippers (Schliwa et al. 2015). The main form of the impact of the power
freight cargo has been seen with the overall consequence of the lower freight costs on trade
especially in the emerging countries with higher form of the transportation cost. This could be
also seen to be positive to some extent. In 2015, the global dry bulk shipments have been
contracted with 0.2% of the volume was estimated with 4.8 billion ton. The same has been seen
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with the contrast to the average annual growth of 7% in the recent years. The “dry bulk trade”
contracted is due with 1.3% decline in the trade among the five majorities with the dry bulk
commodities. Some of the main form of the commodities has been seen to be discerned with
“iron ore, coal, grain, bauxite and alumina and phosphate rock”. In 2015, the consignments of the
five major bulk commodities have been seen with a total amount of 2.95 Billion tons. In less than
15 years, China has been seen to be reaching import volumes of more than 319 million tons in
2000 to 2.1 billion tons in 2015 (Nathanail, Gogas and Adamos 2016).
The lower amount of the freight rates has been further seen to be associated to the issues
related to insolvencies and liquidations among the various types of the shipping companies. In
2016, the shipping industry has been seen to be dealing with the number of issues which has
been seen to be discerned with persistent mismatch between supply capacity and demand. The
uncertainty in the global outlook for the seaborne freight rates have been seen to be determined
with the procedure supply capacity management was seen to be handled (Oberhofer and
Dieplinger 2014).
Discussion on the hypothesis
As per the inferences made in the journal article it has been discerned that due to the
present issues in Maritime transport and logistics there has been mismatch between supply
capacity and demand. The uncertainty in the global outlook for the seaborne freight rates have
been seen to be determined with the procedure supply capacity management was seen to be
handled. It has been also discerned that lower amount of the freight rates has been further seen to
be associated to the issues related to insolvencies and liquidations among the various types of the
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shipping companies. Due the aforementioned impact for the issues in maritime logistics we need
to reject • Null Hypothesis (H0) and accept Alternative Hypothesis (H1).
Discussion on the objectives
The important discussion on the research objectives has been able to suggest that the
present issues in Maritime transport has been depicted with lower freight rates. This has led to
severe problems which has been seen to be discerned with the insolvencies and liquidations
among the various types of the shipping companies.
The market risk involved in maritime logistics has been further seen to be discerned as
per the changes in the oil prices which has led to deviations in the freight rates. The rapid change
in the market due to rapid social change and high volatility. The complex nature of the
operations has been depicted with entities and long distance physical process. This has led to
various types of the emerging market risk. The study has been further able to address the
complex problems for long distance of the containerised cargo.
The effect on demand and supply has further shown mismatch between supply capacity
and demand. The uncertainty in the global outlook for the seaborne freight rates have been seen
to be determined with the procedure supply capacity management was seen to be handled. The
impact of Maritime transport on the shipping segments has been discussed with low earnings and
freight rates. Due to the existing problems several companies has been seen to facing problems
associated to liquidation and unpredictability of cargo rates.
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Conclusion
Based on the various type of the discussions of the study the terminal operators have been
seen to be rediscovering the market risks and services of the shipowners services packages which
has been rewarded rediscovering of the market risks and struggling offer given to the service
packages of the shipowners and the same has been reflected in their own balance sheet. In 2015,
the global dry bulk shipments have been contracted with 0.2% of the volume was estimated with
4.8 billion ton. The same has been seen with the difference to the average annual growth of 7%
in the recent years. The contracted dry bulk trade is due with 1.3% decline in the trade among the
five majorities with the dry bulk commodities.
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References
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Schliwa, G., Armitage, R., Aziz, S., Evans, J. and Rhoades, J. (2015) ‘Sustainable city logistics -
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