EVØ-ØKB3201 Shipping Economics

Contents and structure

The subject starts with a historical view on maritime industry, including the current role, as well as the cyclic nature of shipping. The four main markets will then be described; Newbuilding, chartering, purchase & sale, as well as scrapping of ships. After this there will be a presentation of revenues and expenses of a shipping company, and optimization of these, as well as a review of how ships are financed. Furthermore, one goes through the most important chartering markets with associated ship types before a finish with focus on some of the political and regulatory actors relevant to the maritime industry.

Learning Outcome

The student:

• Has a historical overview of the maritime industry and its current role in international trade.
• Has knowledge of the individual shipping markets; Newbuildings, chartering, purchase & sales as well as scrapping.
• Can explain how the parties in the maritime sector operate commercially and their process of financing.
• Has knowledge of the main freight markets and their associated ship types.
• Have a basic overview of organizations such as Norwegian Maritime Authority (NMA) International Maritime Organisation (IMO), and International Labour Organisation (ILO).

The student:

• Can perform an analysis of supply and demand in the individual shipping market and know how this affects the prices.
• Can perform basic calculations and profitability calculations of freight.
• Can explain different funding methods for buying ships, and the advantages and disadvantages of each method.
• Can evaluate different chartering strategies based on market segments.
• Can explain central political and regulatory governancein shipping.
• Has a comprehensive understanding of the maritime industry and the interaction between the different parties in the industry.

The student:

• Has a basic understanding of maritime industry, including knowledge of the history and the role of the industry in international trade today, with particular focus on decision-making in shipping companies.

Entry requirements

None

Recommended previous knowledge

None

Teaching methods

Lectures and workshops.

Session-based teaching.

Compulsory learning activities

None

Assessment

100% home examination, 14 days, grades from A-F.

Examination support material

All printed and hand-written support material is allowed.

More about examination support material