Maritime Economics

DESCRIPTION: 
The shipping market and shipping company economics, seaborne trade and transport systems, the merchant fleet and transport supply, and elements of maritime forecasting and market research.

RATIONALE: 
The course aims at helping students consider both employment opportunities in the shipping field, and post-graduate studies in same. To this end, it offers an introduction to the fundamental economic concepts related to the shipping trade, as well as an insight into the economic mechanics of the global shipping market. It also provides the necessary groundwork for other courses in shipping.

LEARNING OUTCOMES: 
As a result of taking this course students should be able to:
1. Describe and explain the rise of liner and tramp shipping in the 19th century, as well as the main changes in world shipping that took place after the 1950s.
2. Categorise the main marine activities to-day, define ‘bulk shipping’, ‘liner shipping’, and ‘specialised shipping’, and demonstrate understanding of both the relationship between ship size and economies of scale, and the sea transport unit cost function.
3. Define and describe shipping market cycles, and evaluate the chance of a correct prediction.
4. Analyse key influences on supply and demand in the shipping market model, as well as the freight rate mechanism.
5. Define and describe the four shipping markets (shipbuilding, freight, sale & purchase, demolition).
6. Define the annual cost per deadweight tonne of a ship, operating, voyage and cargo-handling costs, freight revenue and ship productivity.
7. Demonstrate understanding of the main financial statements of a shipping company, and of methods of computing the cashflow.
8. Define the Return on Shipping Investment, and show understanding of a shipping company microeconomic model.
9. Describe aspects of specialised shipping, like the sea transport of chemicals, liquefied petroleum or natural gas, and passenger shipping, including the cruise business.
10. Define and explain the shipbuilding cycle, and shipbuilding supply and demand.
11. Define classification societies, explain the difference between flag state and coastal state, describe the regulatory role of either, explain how maritime laws are made, and briefly describe EU regulation of shipping competition.
12. Explain the difficulties inherent in maritime forecasts, describe the difference between market forecasting and market research, and describe the stages usually involved in freight rate forecasting.

METHOD OF TEACHING AND LEARNING: 
In congruence with the learning and teaching strategy of the college, the following tools are used:
- Classes consist of lectures and class discussions of recent articles in economic journals assigned by the instructor.
- Office hours: students are encouraged to make full use of the office hours of their instructor, where they can ask questions and go over lecture material.
- Use of a blackboard site, where instructors post lecture notes, assignment instructions, timely announcements, as well as additional resources.