The STC 355 demand for shipping and shipping cycle stages essay focuses on shipping economics and finance. Mainly, several factors affect the demand for shipping. First, there is the world economy. Primarily, it is the most important single influence on shipping demand globally. Importantly, the growth of sea trade follows the growth of the world economy closely. Secondly, there is the seaborne commodity trade. The effect of individual commodity trades on demand for sea transport falls into short-term and long-term components. The STC 355 demand for shipping and shipping cycle stages essay highlights the factors affecting the demand for shipping.
SHIPPING CYCLE STAGES AND FACTORS AFFECTING SHIPPING
The shipping cycle stages get based on customer demand. The shipping cycle is an economic concept that explains how shipping companies and freight charges respond to supply and demand. Moreover, it examines how and why ships build up in sea trading ports. There are four stages in the shipping cycle, and they include trough, recovery, peak, and collapse. Notably, the trough is the first stage, and excess in capacity characterizes the stage. Primarily, freight costs begin to fall s ships slowdown in the docks. The demand for shipping and shipping cycle stages essay helps in understanding how the shipping cycle takes place.
shipping cycle stages and factors affecting shipping
FREIGHT RATE MECHANISM AND DEMAND FOR SHIPPING
The research discusses the freight rate mechanism in the shipping market. Primarily, sea transport is a derived demand where shipping demand occurs due to seaborne trade activities. Moreover, the demand determinants affecting sea transport include the world economy and seaborne commodity trade. Determinants of shipping supply include operational efficiency and fleet size. The freight rate gets determined through the level of activity in the demand and supply functions. Notably, a shipping cycle starts with a shortage of ships and increases in freight rates. Thus, in turn, stimulates excessive ordering of new ships. The essay helps in highlighting the demand for shipping and shipping cycle stages and how the freight rate mechanism works.
freight rate mechanism and demand for shipping
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