Three Companies A, B, and C are providing liner shipping services. What effect will each of the following have on the demand for liner shipping services? For each effect, provide a brief explanation and justification.
a. Company B increases the frequency of services in a shipping route connecting to a particular port that is also serviced by Company A.
b. An interstate highway connected to a port, serviced by Companies B and C, is completed.
c. The economy experiences a moderate upturn, trade increases, and business confidence is improving. But Company A’s image is tarnished as a result of a recent strike in one route where both Company B and C also provide shipping service.
1. Questions On Maritime and Logistics Management
Maritime and Logistics Management
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Abstract
a) Newbuilding and scrapping: Scrapping refers to the act of breaking down a ship into
parts for disposal or reuse by reprocessing them. Newbuilding, as the name suggests,
refers to the construction of new ships using parts from the scrapping. Shipping policies
aimed at reducing the negative impact on the environment will initially result in an
increased amount of newbuilding and scrapping. The environmental impact can be
reduced following these policies through an improved hull design achieved by breaking
down old ships to build new ones with better technologies (Hayman, Dogliani, Kvale,
& Fet, 2000). A better, newer hull design can reduce environmental impact by reducing:
operational emissions (through reduced fuel consumption) and accidental pollution
(through reduced oil spills and exposure to other harmful materials during an accident).
Also, an improvement in the quality of design, structure, outer coatings and working
conditions for workers and passengers would require scrapping and increase new
building which would finally lead to longevity of the ships and reduced scrapping in
the future.