...Baltic dry Bulk Index as a measure of overall economic activity Comm 445 101October 6, 2013 | Denis ZhekhovskiyStudent # 44043107 | The Baltic Dry Index , or BDI, is an index that provides "an assessment of the price of moving the major raw materials by sea, such as grain, cocoa, phosphates, fertilizers, animal feed, oil, coal, iron ore and metal (Financial Iceberg, 2012). Taking in 23 shipping routes measured on a timecharter basis, the index covers Handysize, Supramax, Panamax, and Capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain. BDI is a number issued daily by the London-based Baltic Exchange, and is not restricted to Baltic Sea countries. (Baltic Exchange, 2013) | Baltic Dry Index vs. Time Graph(The Geography of Transport System, 2013) | The Baltic Dry Index is considered an excellent gauge of global trade, measuring the demand and supply of dry bulk shipping capacity in the real time. This avoids the effects of the substitution products and futures contracts that account for additional price fluctuations in the commodity prices, making it more difficult to interpret their results on the overall economy. An increase in demand for dry bulk shipping capacity indicates growth in trade of bulk cargo (usually the raw material for intermediate or finished goods), which points to growth in consumption and general economic health (Financial Iceberg, 2012). Unlike stock and commodities markets, the Baltic Dry Index is totally...
Words: 1130 - Pages: 5
...the Lloyd's crest are the registered trademarks of the society incorporated by the Lloyd's Act 1871 by the name of Lloyd's. CONTENTS WELCOME TO THE COURSE ........................................................................................................ 3 STRUCTURE OF THE COURSE ...................................................................................................... 4 INTRODUCTION TO MODULE 1 ................................................................................................... 7 1. ECONOMIC ANALYSIS OF THE SHIPPING INDUSTRY ........................................................... 8 1.1 The Function of Shipping .................................................................................................. 8 1.2 The Structure of World Seaborne Trade and the Demand for Shipping Services....................... 8 1.3 The Ton-Mile as a Measurement of Demand for Shipping Services ....................................... 12 2. ANALYSIS OF GLOBAL COMMODITIES ON-BOARD SHIPS .................................................. 14 2.1 Crude Oil Seaborne Trade .............................................................................................. 14 2.2 Other Challenges for Crude oil Transportation ................................................................... 16 2.3 Iron Ore Seaborne Trade ............................................................................................... 16 ...
Words: 10161 - Pages: 41
...exportation and importation of goods and services across countries and continents (Nam Sung et al., 2009, pg2). Global shipping freight rates rose in 2013 to their highest level in more than 18 months. The measure, known as the Baltic Dry Index, is seen as a key indicator of global economic growth. The index tracks how much it costs for ships to carry dry-bulk commodities such as iron ore and coal. In reference to shipbuilding being a cyclical industry, Bloomberg Businessweek says “When the global economy is booming and trade is healthy, shippers scramble to meet demand with more and bigger ships. But the time it takes to build them is just long enough, in many cases, for booms to end and global trade to sputter. As more and more new vessels come online, the glut exacerbates the collapse in shipping prices, the industry scales back, companies go out of business, and the process begins again…” (NPR.org, 2013). An image of a feedback loop depicts how economic conditions influence the demand for ships. As can be seen from the loop, if the world economy improves, then the desired shipping capacity increases as there is more economic activity across the global such as exportation and importation leading to the desire for more ships for transportation purposes. When the desired shipping capacity increases, the gap between the current shipping capacity and the desired shipping capacity also increases which in turn leads to an increased order rate for building ships. Once the order rate goes...
Words: 1130 - Pages: 5
...Assignments of Port Economics Topic Freight rates have remained low and volatile in the various market segments (container, liquid and dry bulk). What influences freight rates? How has this influenced the demand for port services and the setting of port charges and tariffs? Huda Mohammad Nazmul Student ID: 1120130936 Major: Master’s of Business Management Dalian Maritime University Dalian, China Abstract After the economic crisis in 2007-2008 fiscal years the freight market remained volatile and freight rate remained low in various market segments. The purpose of the study to determine the factors those influence the freight rate and how those influence the demand of port services and setting charges for the port. The depression in market segments affects the supply and demand of the freight of the shipping lines which also has an effect on the demand of port services and setting of port charges and tariffs. The research paper shows the factors that influence the freight rate as well as the influence on the port services and setting charges and tariffs which lead to a change in port operation, reform and regulation. To illustrate the relation among them international trade theory and other historical data has been considered as the evaluations of the paper. In the discussion of different market segments new demands for the port operation and setting charges has been illustrated. Fundamental concepts...
Words: 6350 - Pages: 26
...Favorite Brand Paper Jonathan Mitchell University of Phoenix MKT/421 Sandra Woods March 3, 2015 Favorite Brand Paper My favorite brand I’m passionate about is Queen Helene Cocoa Butter Crème. “Queen Helene® brand has been a leader in quality and beauty products for professional and personal use since 1930. Our products are inspired by nature’s finest ingredients because they are safer, and often more effective, than harsh chemicals and unnecessary additives. We are proud to have created a full line of affordable and effective body care products that are still passed on from generation to generation” (Queen Helene, 2015). I am passionate about this brand because with all of the cosmetic fixes out there, a natural remedy would better than a risky and expensive procedure just to make sure my skins feels the way it did I was young. I love this brand because it makes my skin feel soft and smooth. It last longer than other brand I have tried. Most of the brands out there because of their name have notoriety, like Palmer’s cocoa butter, but these brands are often water down versions of the original product because of the Palmer’s popularity, although expensive, the brand is mass produced, therefore, the quality of the product is diminished to serve all consumers. Palmer’s cocoa butter wears out fast and I have had to reapply it throughout the day, it is very thin and leaves my skin dry unlike like Queen Helene’s cocoa butter crème. I can use it once even after I was my hands...
Words: 835 - Pages: 4
...Chapter-1 – INTRODUCTION 1.1 Indian Scenario in Shipping Maritime transport, which plays a vital role in the development of the country, comprises ports, shipping, shipbuilding and ship repair, and inland water transport systems. According to the Ministry of Shipping, Government of India, approximately 95% of the India’s trade by volume, and 70% by value, is moved through maritime transport. India is among the top 20 leading countries having large number of merchant fleets in the world. The Gross Tonnage (GT) under the Indian flag was 10.1 million GT as of 1.09.2010, with as much as 1029 ships in operation. Ports act as an interface between ocean transport and land transport. India has 12 major ports viz. Kolkata (including Dock complex at Haldia), Paradip, Vishakapatnam, Chennai, Ennore, Tuticorin, Cochin, New Mangalore, Mormugao, Jawaharlal Nehru at Nhava, Mumbai, and Kandla, and 187 minor ports. Despite recessionary conditions, traffic handled at major ports has grown on an average by 5.7% in the year 2009-10, over the year 2008-09. However, ports like Haldia (-20.4%), Ennore (-6.9%) and New Mangalore (-3.2%) are few of the main ports that witnessed negative growth in 2009-10. Nevertheless, most of the ports have not achieved their target for the year 2009-10. Mormugao (8.5%), Tuticorin (8.1%) Mumbai (2%), Kandla (2%), and Paradip (1.8%) were the only ports which achieved their growth target for 2009-10. Haldia (-22.1%)...
Words: 30004 - Pages: 121
...UNCTAD Review of MaRitiMe tRanspoRt 2014 For further information on UNCTAD’s work on trade logistics, please visit: http://unctad.org/ttl and for the Review of Maritime Transport 2014: http://unctad.org/rmt E-mail: rmt@unctad.org Layout and printed at United Nations, Geneva 1418912 (E)–November 2014–2,062 UNCTADRMT2014 United Nations publication Sales No. E.14.II.D.5 UNITED NATIONS ISBN 978-92-1-112878-9 Photo credit : © Jan Hoffmann To read more and to subscribe to the UNCTAD Transport Newsletter, please visit: http://unctad.org/transportnews U n i t e d n at i o n s C o n f e r e n C e o n t r a d e a n d d e v e l o p m e n t Review of MaRitiMe tRanspoRt 2014 U n i t e d n at i o n s C o n f e r e n C e o n t r a d e a n d d e v e l o p m e n t Review of MaRitiMe tRanspoRt 2014 New York and Geneva, 2014 REVIEW OF MARITIME TRANSPORT 2014 ii NOTE The Review of Maritime Transport is a recurrent publication prepared by the UNCTAD secretariat since 1968 with the aim of fostering the transparency of maritime markets and analysing relevant developments. Any factual or editorial corrections that may prove necessary, based on comments made by Governments, will be reflected in a corrigendum to be issued subsequently. * ** Symbols of United Nations documents are composed of capital letters combined with figures. Use of such a symbol indicates a reference to a United Nations document. * ** The designations...
Words: 47885 - Pages: 192
...revenue. Kuantan Port is a multi-purpose port and operates all-year-round in all-weather condition. Strategically located on the eastern seaboard of Peninsular Malaysia facing the South China Sea, Kuantan Port is the gateway to Asia Pacific Region. Currently, the port is providing a variety of berth facility to cater for various cargo compositions such as multipurpose berth, liquid chemical berth, palm oil berth, mineral oil and container terminal berths. It also provides storage facilities such as warehouses, container yard and storage yards for commodity such as bauxite and iron ores. The revenue comes mainly from cargoes handling and storage services with 55% of the contribution comes from dry bulk handling, 33% from liquid and palm oil handling and 12% from container handling. Dry bulk handling, particularly the handling of bauxite, has become the main contributor to the revenue and will be the focus in this study. Figure 1: Bauxite handling service Background Why bauxite demand from Malaysia suddenly surges Bauxite is the main ore for alumina, which is used to produce aluminium....
Words: 2010 - Pages: 9
...Amazon’s Marketing Plan Case Amazon's Target Market Segmentation E-commerce is becoming more international now as more foreign countries flock towards the online marketplace. Technology is becoming less expensive as it is being produced more than ever. This allows underdeveloped countries to use these online marketplaces such as eBay or Amazon. Across the world, shoppers are buying more products online; and even with their mobile phones. Amazon is creating websites for China. The U.S. has been using Amazon for over 20 years now, and it has grown to offer just about anything you can think of. Amazon’s biggest selection is in books, movies and media, That is only because they started the company as an online bookstore, Amazon is now selling over 200 million products in the U.S. and 306 items sold every second (Yarow, 2012). Amazon has approached its marketing strategy differently than some companies by using segmenting over having specific target markets. When a customer joins Amazon, they do not get questioned on personal information to determine what marketers will promote to them, but their behavior throughout the site plays a huge role. As customers use the site, their activity is recorded and registered to then be provided with content related to what they’ve previously had an interest in. This can all be done with very simple technology that can even build automated messages through emails to customers (Kanary, 2014). Amazon seems to attract individuals of the higher...
Words: 3497 - Pages: 14
...Administration Programme, Gujarat Technical University SUBMITTED BY: Clifford Dsouza | NR13035 | Royston Dsouza | NR13036 | Mittal Patel | NR13098 | Atit Sakhidas | NR13125 | Akash Shah | NR13130 | Manali Sharma | NR13145 | Tejas Vasani NR SUBMITTED TO: Dr. Jasmin Padiya N.R. INSTITUTE OF BUSINESS MANAGEMENT BATCH 2013-2015 * Industry Overview The Indian logistics industry was valued at an estimated US$ 130 billion in 2012-13. It has grown at a CAGR of over 16 per cent over the last five years. The industry comprises the following main segments: * Freight and passenger transportation via road, rail, air and water * Warehousing and cold-storage. The contribution from the movement of goods including freight transportation and storage is about 90 per cent. Aggregate freight traffic is estimated at about 2-2.3 trillion tonne kilometres. Road dominates the mode of freight transport mix and constitutes about 60 per cent of the total freight traffic. Rail and coastal shipping account for about 32 per cent and 7 per cent, respectively, while the share of inland waterways transportation and air is less than 1 percent. Warehousing comprises industrial and agricultural storage. Of the total warehousing space of about 1,800 million sq ft, the industrial and agricultural segments constitute about 86 per cent and 14 per cent, respectively. Government organisations including Food Corporation...
Words: 4225 - Pages: 17
...identify and understand the differences between the two types. Therefore, their legal definition will be presented as well as, where and how each of them should be used appropriately, in order to avoid misunderstanding between the involved parties which, unfortunately could lead them to court. Furthermore, past cases such as, “APL vs. Peer Voss and the Rafaela S”, will be mentioned in order to distinguish the difference between a seaway and a straight bill of lading. Chapter 2: Literature Review 2.1 Bills of Lading The bill of lading (B/L) is used for the transportation of goods by sea. The word “lading” derives from the word loading, referring to the loading of goods onto a ship. (Investopedia, 2015) This document is signed and act as a legal contract between the shipping company, which has the responsibility for the carriage of goods from the port of origin to the port of destination, and the customer who makes the export (shipper) and the import (consignee). Its role is very important because in case of error, the commodity, which can be worth hundreds of thousands dollars, may end up into the wrong hands before the fulfillment of all the obligations from the contractual parties who participated in the carriage. The information presented on the bill of lading have to be properly completed, in order to avoid mistakes during the carriage of the goods. Therefore, it is necessary to indicate the names of the sender and the recipient of the goods, the names of the...
Words: 3143 - Pages: 13
...MDI, Gurgaon Strategy Management - II Assessment of the changes in Indian industry environment and their impact in respect of the following sectors: a) Telecom b) Automobile c) Shipping ARPIT JAIN: 12P189 Indian Industries The Indian economy has survived the global downturn very well. It has posted one of the highest rates of economic growth in the world despite other major industrial giants lagging behind. At the end of 2009, the Indian economy was growing at 7% a year. The strongest growth was coming from the manufacturing and construction sector and the weakest section was agriculture. The drawback of such a rapid economic expansion is a rise in inflation. The economy of India is the eleventh largest economy in the world by nominal GDP. Post independence the country went into a fast paced economic growth which was further fuelled by the free market principles started in the 1990’s which welcomed foreign investments. It has been predicted by leading Economists around the world that by 2020, India will be among the leading economies of the world. Four key industrial economic sectors are identified in India. The primary sector, largely extract raw material and they are mining and farming industries. In the secondary sector, refining, construction, and manufacturing are included. The tertiary sector deals with services and distribution of manufactured goods. India's service industry accounts for 57.2% of the country's GDP while the industrial and agricultural sector...
Words: 2851 - Pages: 12
...ABSTRACT The objective of this group project is to study the company to deal and manage the export activity within the foreign country. From the project will be discussed the incentives and activities to operate in export processing zone (EPZ) and what mode of transport available and suitable to use for sending the product. Besides that, type of packaging the herb for export to India and the main office activities and export market entry strategies to India also discovered in the project. The last part of the discussion in our project is discussed the export financial, all the export documentations and export procedures involved in the exporting activity. 1.0 COMPANY BACKGROUND Dherb is a one of the famous herb company in Malaysia. Dherb holding established in September 2010 and operates on a small scale for 2 years. Dherb holding founded by Dato’ Shazana binti Amiruddin. After 2 year operation, D'Herbs have now become a brand that has captured the hearts of consumers either in Malaysia, Singapore and Brunei with the operation formally in Wisma D'Herbs in Kota Damansara and our aim to become one of the famous brands in health and state nationalized neighbors and our goal to worldwide. In the year 2012, was the peak year for D'Herbs products in which we have under Label Company Berhad. We have developed our business by opening several branches around the country. With the opening of new branches,it will be easier for the customers to find our health products. So far, the...
Words: 5460 - Pages: 22
...economies. However, the industry is volatile and suseptable to extremes both low and high. Many ship owners sought to sign contracts with time charters in order to shield themselves from the swings in the market. The age of the vessel is another key variable in the rate an owner can demand. Younger ships, as mentioned before, generally take in 15% higher rates than the industry average. However, the older ships, roughly 25 years or over, demanded a 35% discount off of the industry average. Location is also a key factor in determining the demand for dry bulk capsizes. The distance between the US and the EU is relatively short requiring a smaller fleet of ships. Whereas, an upturn in demand in the Asian Pacific would require a greater fleet of capsizes in order to accommodate the time required to ship such distances. Ocean Carriers had to concern themselves especially closely on the global economy because demand for dry bulk capsizes is determined by market demand. Over 85% of all cargo is iron ore and coal and demand typically rises and falls with these two commodities. This also informs that the markets for iron and coal heavily influence the capacity for industry growth. Ocean Carriers has 63 new vessels scheduled for deployment in 2001 and stagnant economic growth predicted for the next 2 years with significant...
Words: 2550 - Pages: 11
...the GLOBE Website. The data that were collected were encoded to the GLOBE Website for the scientists to be able to better understand and interpret the current status of the soil. The soil samples were collected from the site located inside the vicinity of Cavite National Science High School. The gathering of samples was done on the two different seasons of the year, the wet and dry season. The protocols provided by the GLOBE organization were used in conducting the experiments in determining the soil properties. Some of the experimentation proper was done in the school’s Chemistry laboratory and Biology Laboratory. Soil samples were sent to the Department of Agriculture in Trece Martirez City to be able to obtain the results for the pH level and N-P-K Content of the soil. The results showed that the soil in Cavite National Science High School had a pH level of 5.8, temperature of 27.65°C. The nitrogen and potassium content of the soil was low in all of its horizons, sufficient potassium content and medium content of phosphorus. According to the analysis made, there was a significant difference in the bulk density of the soil and there was no significant difference in the soil temperature. Chapter I Introduction Soil covers one third of the earth’s surface which is about thirteen billion hectares and is a renewable resource. This land surface is like a giant storehouse of valuable resources and a portion of it is now being dwelled upon by seven billion people. However, only...
Words: 9275 - Pages: 38
