Wednesday, October 30, 2019
Discuss how the four shipping markets are linked to each other Essay
Discuss how the four shipping markets are linked to each other. Demonstrate their interconnections using examples from the shipping industry - Essay Example This means that when before I can demolish 12 dirty ships in one year (at 1 month per ship), then if ships are easy to demolish and clean, they will take only 3 weeks to demolish. This means that I can demolish 1 ship every 3 weeks so in 12 weeks (3 months or 1 quarter) I can demolish 4 ships and in 1 year (12 months or 4 quarters) I can demolish 16 ships (4 ships/quarter x 4 quarters/year). That is 4 more ships per year. If I have the same number of workers, and I can demolish 4 more ships extra every year because it is easy to demolish 1 ship, then that means I can have more profits, right Again, this is an analysis of the effect of faster demolition of ships. Assume that today, we can demolish 12 ships a year. If there are 20 ships in the whole shipping industry that has to be demolished, then at the end of 1 year, we can demolish 12 and there will be only 8 ships left. The sales and purchase market will have 8 ships to sell or to buy. The freight market can also use these 8 ships.