problem 1: UNCTAD have discovered a broad range in the ratio between shipping costs and export values (Table shown below). Examine any possible reason for this; consider maritime economics in relation to ship types, sizes, cargo-handling methods and distances steamed vis-à-vis export prices.

Table: Deep-sea Shipping Costs as a Percentage of Export Prices
                                              1970    1980    1990     2007
Export
Jute ex Bangladesh               12.1%  19.8%  21.2%   44.2%
Tea ex Sri Lanka                     9.5%    9.9%   10.0%   13.4%
Coffee ex Columbia                 4.2%   3.3%     6.8%    2.5%
Coca beans from Ghana          2.4%   2.7%     6.7%    3.5%

Source: derived UNCTAD Virtual Institute, May 2009

problem 3: Iron ore is one of the main dry-bulk trades. Consider the supply of tonnage and ports available to serve this market.

problem 4: By using supply and demand curves, state and discuss “the four shipping markets” (Stopford, 2009), in shaping investment decisions by ship-owners.

problem 5: In considering either ordering a new cargo vessel, or in searching the Sale and Purchase (S&P) market for second-hand tonnage, describe the main decision-making factors that the ship-owner will face.

problem 6: Describe the main elements of costs which need to be managed in proficient maritime economics.

problem 7: Describe the economic characteristics and market benefits of RoRo shipping In the West African export and import trades.

problem 8: In the 1980s Martin Stopford commented that:

 “The economics of running a merchant fleet in the 1980s depend on crewing costs, maintenance standards and taxation levels, all of which depend on the laws governing ship registration” (Stopford, M. (1988) Maritime Economics, 1st edition, p. 138).

a) Examine the main elements of such economic areas.
b) Describe any possible changes in the main economic elements in the modern shipping operations.