Ocean Carrirs

Assignment title : OCEAN CARRIERS CASE

Course title:

Date:

Professor’s name:

Table of Contents

Page numbers

1. Executive summary

2. Main report

2.1 Answer no. 1

2.2 Answer no.2

2.3 Answer no.3

2.4 Answer no.4

2.5 Answer no.5

2.6 Answer no.6

2.7 Answer no.7

3. Exhibits

4. References

1. Summary

2. Main Report:

2.1. What factors drive average daily spot hire rates? Do you expect daily spot hire rates to increase or decrease next year? (10 marks) 

Answer: First of all, as given in the above case the ocean carriers Incorporation owned and operated capsize bulk carriers, which were used for the purpose of carrying cargoes.

Therefore some important factors which drive daily spot hire rates can be:

* Economy of the world

* Availability of charterers in market.

* Alteration in trade patterns

* The demand in iron ore shipments.

* Length of the contract

* Quantity and what is to be carried

* The places where vessels would be loaded and unloaded.

* Labor costs

* Costs involved

* Demand and supply of the shipment services.

Secondly, as the case suggests, it is expected that the daily spot hire rates will increase, as the daily hire rate is to grow next year. This increase is due to the increase in the normal rates that due to the phenomena of inflation which is increasing @ 1% annually.

2.2. How would you characterize the prospects of the long term prospects of the capesize dry bulk industry? (10 marks) 

Answer 2.2

The prospects of the long term prospects of the capsize dry bulk industry can be classified as under:

* Technology advancement which will meet the change in prices occurring due to trhe phase of increasing inflation.

* On the basis of Demand and Supply- Due to increasing globalization the demand for goods and services will also increase and hence the future growth of the companyis probable good.

* On the basis of investment- The investment cost in the further...