CHARTERING

Dinesh N. Kutty

FREIGHT MARKETS

The Bulk market can be divided into:

1) The Freight Market.
2) The Second-hand Market.
3) The New-building / Scrapping market.

Factors affecting the freight markets:

1)

World Economy.
recession, growth, volume of trade, GDP growth.

2)

Sea-borne commodity trade.

90% trade moves by sea.

3) Size of World Fleet.

Present fleet is about 55,211 vessels; about 1227 mill DWT
4)

Shipbuilding / Scrapping
Perceived demand, Shipbuilding cost, Price of steel, Returns
on capital

5)

Political Environment
War, International Agreements (WTO, NAFTA), Piracy

Factors affecting the freight markets (Contd.)

6)

Duration of Employment.
Long Haul/ Short Haul, Spot market / Period market

7)

Transportation cost
Bunker cost, AWRP etc.

8) Operating Environment.
International laws, Technological advancements.