Change your region Australia

Bookmark and Share Share
Posted 7 months ago


The high cost of failing is the most dangerous challenge to the profitability in shipping and logistics industry. Therefore, cost optimization, streamlining and unlocking value in supply chain processes, while ensuring customer focus, are some of the imperatives of shipping and logistics firms.

Sea transport is a derived demand where shipping demand occurs as a result of seaborne trade. The demand determinants affecting sea transport include government and political factors, the world economy, seaborne commodity trade, average haul, and transport costs. On the other hand, determinants for shipping supply are fleet size and operational efficiency. The shipping supply function shows the quantity of shipping services by sea transport carriers that would b offered at each level of the freight rate, whereas the shipping demand function shows how shippers adjust their demand requirements to changes in freight rates. In the shipping market, the supply and demand curves intersect at the equilibrium price, where both carriers and shippers have reached a mutually acceptable freight rate. Furthermore, the concept of the shipping cycle is introduced in this chapter. A shipping cycle starts with a shortage of ships and increases in freight rates, which in turn stimulates excessive ordering of new ships. The delivery of new ships leads to more supply in shipping capacity. The shipping cycle is a competitive process in which supply and demand interact to determine freight rates. shipping and logistics courses


The shipping business uses the market mechanism to regulate supply and demand. Demand for freight transport is determined by demand for physical commodities in a given location. Because of the uneven distribution of natural resources and specialization of production, some areas experience an oversupply of certain commodities, whereas other areas suffer from a deficit. This geographical imbalance gives rise to the fluctuation in demand for freight transport.

You must login to vote for or against this post.

Posted 6 months ago

The shipping industry is a fundamental part of worldwide exchange Do My Assignment | AssignmentNinja assuming an important part in setting up worldwide ties between business associations.

You must login to vote for or against this post.

Join OurPatch, it's free

If it's in our community, it's in OurPatch. Join now – our free membership gives you all this:

  • List your business
  • Add your community group
  • Review a business
  • Take part in blogs and forums
  • List your event

Advertise on OurPatch

Are you interested in advertising on OurPatch? Know what your options are. Request information on your advertising options.

Copyright OurPatch 2007-2017 [2.0] Rails 3.2.11