10 Questions
The success of a shipowner in the shipping market depends on making a large number of decisions.
False
A successful shipowner needs to pay attention to changes in both the world economy and world political conditions.
True
The balance of supply and demand is not considered important in the Shipping Market Supply/Demand Model.
False
The successful shipowner must focus on obtaining information about three main things.
False
A change in freight rates may not affect the decision to order new ships or scrap old ones.
False
The shipping company management should aim to buy high and sell low according to the passage.
False
Tying up ships in long-term time chartering is always better than keeping them available for spot market commitments.
False
The imbalance between supply and demand does not affect freight rates according to the model.
False
One of the influences on the shipping market is changes in weather conditions affecting sea transport demand.
False
Predicting peaks and troughs on the freight chart is not important for shipowners' decision-making according to the passage.
False
Study Notes
Key Factors Affecting Shipping Market Success
- A successful shipowner must consider changes in both the world economy and world political conditions.
Important Information for Shipowners
- A successful shipowner needs to obtain information about three main things.
Supply and Demand in the Shipping Market
- The balance of supply and demand is not considered important in the Shipping Market Supply/Demand Model.
- The imbalance between supply and demand does not affect freight rates according to the model.
Freight Rates and Decision-Making
- A change in freight rates may not affect the decision to order new ships or scrap old ones.
- Predicting peaks and troughs on the freight chart is not important for shipowners' decision-making.
Shipping Company Management Strategies
- The shipping company management should not aim to buy high and sell low.
- Tying up ships in long-term time chartering is not always better than keeping them available for spot market commitments.
External Influences on the Shipping Market
- Changes in weather conditions can affect sea transport demand.
Test your knowledge on how shipping companies manage financial risks related to supply, demand, and freight rates. Learn about the decisions shipowners need to make in order to take advantage of shipping cycles and maximize profits.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
