JNB534 Commercial Ship Management: Discuss The Strategies

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JNB534 Commercial Ship Management

Questions:

Question 1
Liner shipping companies are facing several challenges in the present business environment. 
Explain at least seven challenges and discuss the strategies that they can use to overcome them. 
Use real-world examples to support your discussion.

Question 2
a) Why do ships leaving Australia carry so many empty containers? Discuss the impact this 
imbalance in trade has on the entire supply chain. 
b) With the aid of examples discuss how shipping companies can reduce costs
associated with empty container reposition?  

Question 3
MV Nani is a Post Panamax-sized bulk carrier owned by Zakah Shipping Company. Details of the vessel are as per the attached ship particulars table on page 3 of this booklet. The vessel is currently under a consecutive voyage charter and the owners expect redelivery at Melbourne on 
21st November 2021. The owners are considering two options for the ship. Option 1 is a voyage charter carrying wheat from Fremantle (Australia) to Felixstowe (UK). Option 2 is a 65-days’ time charter with delivery at Brisbane (Australia) and redelivery at Rotterdam (Netherlands).

Task (a)
Prepare a voyage estimate and determine the breakeven freight rate based on the following voyage fixture (option 1) for MV Nani:
• 91,000 tonnes wheat in bulk, 10% MOOLOO
• 1 sb (safe berth) Fremantle / 1 sb Port Felixstowe
• LAYCAN 23/26 November 2021
• FIO
• Loading rate: 8,500 tonnes PWWD SHEX
• Discharging rate: 9,000 tonnes PWWD SHINC
• Total commission 5%
In preparing the voyage estimate, assume that the vessel has no draft restriction in any port and the bunkers ROB at Melbourne are 100 tonnes IFO and 20 tonnes MDO.

Task (b)
For Option 1, a voyage charterer is willing to pay a freight rate equal to the breakeven rate calculated as per the fixture details in Task (a) plus 10%.
For Option 2, a time charterer is willing to hire MV Nani at US$ 12,500 per day for a duration of about 65 days.
Delivery is at Brisbane and redelivery at Rotterdam. Total commission is 6%.
Compare the two options and suggest the best employment for MV Nani. Justify your choice with appropriate explanations and calculations.

JNB534 Commercial Ship Management

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