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Ocean Case Essay

1226 words - 5 pages

Q1. Do you expect daily spot rate to increase or decrease next year (2002)? Daily spot rate will increase as daily hire rate expected grow. Q2. What factors drive average daily hire rates? World economy Demand in iron ore shipments Change in trade patterns

Q3. How would you characterize the long-term prospects of the capesize dry bulk industry? It is stable in that globalization boosts the world's economy which will increase demands for production/shipment of raw materi However, technological advancement (ability to build cheaper and bigger ships) will keep the profitability of the industry in the lo Q4. Should Ms Linn purchase the $39M capesize? No with the assumption 1: Tax applied. ...view middle of the document...

p the profitability of the industry in the long term.

ion as they continue to operate the old ship after 15 years.

2003 2 1 20,000 357

2004 3 2 20,200 357

2005 4 3 20,400 357

2006 5 4 18,714 357

2007 6 5 17,283 357

2008 7 6 17,481 353

2009 8 7 17,682 353

2010 9 8 17,886 353

(46,800,000) (500,000) 300,000 (47,300,000) 7,140,000 (1,460,000) (1,560,000) 0 7,211,400 (1,474,600) (1,560,000) 0 7,282,800 (1,489,346) (1,560,000) 0 7,683,033 (1,504,239) (1,560,000) 300,000 7,095,536 (1,519,282) (1,560,000) (60,000) 0 7,096,412 (1,534,475) (1,560,000) (60,000) 0 7,178,008 (1,549,819) (1,560,000) (60,000) 0 7,260,822 (1,565,318) (1,560,000) (60,000)

4,120,000 (1,442,000) 2,678,000 4,120,000 1,560,000

4,176,800 (1,461,880) 2,714,920 4,176,800 1,560,000

4,233,454 (1,481,709) 2,751,745 4,233,454 1,560,000

4,618,793 (1,616,578) 3,002,216 4,618,793 1,560,000

3,956,254 (1,384,689) 2,571,565 3,956,254 1,560,000 60,000 1,620,000 4,491,565 5,876,254

3,941,937 (1,379,678) 2,562,259 3,941,937 1,560,000 60,000 1,620,000 4,182,259 5,561,937

4,008,188 (1,402,866) 2,605,323 4,008,188 1,560,000 60,000 1,620,000 4,225,323 5,628,188

4,075,504 (1,426,426) 2,649,078 4,075,504 1,560,000 60,000 1,620,000 4,269,078 5,695,504

1,560,000 (43,062,000) (41,620,000)

1,560,000 4,274,920 5,736,800

1,560,000 4,311,745 5,793,454

1,560,000 4,562,216 6,178,793

2011 10 9 18,092 353

2012 11 10 17,428 353

2013 12 11 17,628 349

2014 13 12 17,831 349

2015 14 13 18,036 349

2016 15 14 18,243 349

2017 16 15 14,762 349

2018 17 16 14,932

...

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