• Journal of Navigation and Port Research
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• v.35 no.9
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• pp.765-776
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• 2011

For container shipping company, fuel oil prise is a considerable expense. Since 2008, fuel oil prises have risen dramatically. An increasing fuel oil price in container shipping, in the short term, is only partially compensated through surcharges and may affect earnings negatively. This study discusses the impact of an increasing fuel oil price and capital costs for vessels on the Asia-Europe trade of 'H' Shipping Company. According to the result of 'H' carrier's operation in 2008, there were no cost differences between 8 and 9 vessels operations in case of fuel oil price with USD 169/tons while adopting USD 31,818 as a fixed cost. We can expect that the fuel oil price will not go lower than USD 200/Ton on the basis of current high oil price phenomenon. When the fuel oil price is over USD 200/ton, 9 vessel operation is more economic than 8 vessel operation even if the fixed cost is over USD 35,000.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2009.06a
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• pp.173-174
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• 2009

For container shipping company, fuel oil prise is a considerable expense. In the last 3 years, fuel oil prises have risen considerably. An increasing fuel oil prise in container shipping, in the short term, is only partially compensated through surcharges and will therefore affect earnings negatively. This paper deals with the impact of increasing fuel oil price and capital costs for vessels on the number of vessels on the Asia-Europe trade. As per result of 'H' carrier's operation in 2008, there were no cost difference between 8 and 9 vessels operation in case the fuel oil price is USD 169/tons while adopt USD 31,818 as fixed cost. We can expect that the fuel oil price will not be decreased under USD 200 $/Ton on the basis of current high oil price phenomenon. When the fuel oil price is over USD 200 $/ton, therefore, 9 vessels operation is more economic than 8 vessel operation even if the fixed cost is over USD 35,000.

• The Journal of Fisheries Business Administration
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• v.33 no.2
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• pp.49-74
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• 2002

This study examines, from an economic perspective, the reasons for introducing a resource taxe system into the Korean off-shore fisheries and the type of charges that can be introduced. Following a review of the charging systems in other advanced fisheries, we consider the types of charging scheme and some implications for the Korean off-shore fishing industry. Charges could be used for recovering part of fisheries management cost from the industry(i.e. administration, enforcement, research, etc). This can be justified on the grounds that the fishing industry is the main beneficiary of management and that it should therefore bear at least part of the cost involved. It is arguable that publicly-funded management is in effect a subsidy to the industry. Using charges to raise revenue in excess of the cost of management would represent the extraction of a public rent from the fishery resource, but the short-run financial consqquences for the industry would be significant. Results from a qualtitative analysis suggest that while any new charge will have a significant financial impact on the industry in the short run, a landings tax would have a lesser impact on fleet structure in the long run. The study also considers the possibility of a capital gains tax on license sales in order to recover some rent from the industry. Despite any short run-financial consequences, making the fishing industry pay for at least some of the cost of management could benefit the industry as a whole if there were more cooperation between industry and managers as a result. It is acknowledged, however, that there could be disputes over the relative management costs of different sectors of the industry. Even though this study makes few specific recommendations about charging the Korean off-shore fishing industry, it does advise that the issue be reviewed on the basis of the entire Korea fisheries. Finally, the study notes that insufficient data are available on the economic performance of the Korean off-shore fishing vessels and it recommands that a comprehensive system for the collection of costs and earnings data be put in place. It also suggests that MOMAF pay much attention to the permit right market and its transactions.

• Journal of Navigation and Port Research
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• v.28 no.8
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• pp.687-697
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• 2004

This paper is aimed to guide ocean-going companies to reasonable decisions and to increase the competitiveness of Korean shipping industry by clarifying the determinants of political costs of ocean-going companies, which only depend for the enormous amount of money to introduce the operating fixed assets, or the vessels, upon the supporting policy from the government or the loan from the related financial institutions. As independent variables of the political costs, 5 elements were settled such as company size(sales, total assets and market share), debit ratio, capital concentration ratio, profitability(operating profit) and marine risk(sales fluctuation). To verify the relations and the effect level between dependent variables and political costs, the Multiple Regression Analysis Model was applied The result of the analysis shows significantly positive relations between size variables and political cost of shipping industry. Moreover, debt ratio and profitability were proved significant related with political costs of shipping industry.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2004.11a
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• pp.337-342
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• 2004

A construction project of Incheon 2nd bridge, which is connected between the Incheon Song-Do New Town and the Incheon International Airport in Young-Jong-Do, have been proposed by the private capital in 1999. But the optimal span width in the bridge main span have not been decided in spite of the three investigations into the feasibility of ship's safe transit in this planned bridge. In this paper, we study the economic analysis on port operational efficiency according to traffic schemes, me-way or two-way of vessels over 10,000G/T, in the bridge main span of this bridge. In this comparative result, total queueing time due to the one-way in the bridge main span is evaluated 20,362 hours in 2011 and 24,544 hours in 2020. Therefore the demurrage cost and the accumulation cost of freight are evaluated 19.7 billion won in 2011, and 23.3 billion won in 2020, then total accumulated costs during 33 years from 2008 until 2040 are evaluated about 768..9 billion won.

• Journal of Navigation and Port Research
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• v.29 no.1 s.97
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• pp.65-69
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• 2005

A construction project of Incheon 2nd bridge, which is connected between the Incheon Song-Do New Town and the Incheon International Airport in Young-Jong-Do, has been proposed by the private capital in 1999. But the optimal width of the main span has not been decided in spite of the three investigations into the feasibility of ship's safe transit in this planned bridge. In this paper, we study the economic analysis on port operational efficiency according to traffic schemes, one-way or two-way of vessels over 10,000G/T, in the main span of this bridge. In this comparative result, total queueing time due to the one-way in the bridge main span is evaluated 20,362 hours in 2011 and 24,544 hours in 2020. Therefore the demurrage cost and the accumulation cost of freight are evaluated 19.7 billion won in 2011, and 23.3 billion won in 2020, then total accumulated costs during 33 years from 2008 until 2040 are evaluated about 768.9 billion won.

• Journal of Navigation and Port Research
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• v.43 no.1
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• pp.72-78
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• 2019

The second-hand ship market provides immediate access to the freight market for shipping investors. When introducing second-hand vessels, the precise estimate of the price is crucial to the decision-making process because it directly affects the burden of capital cost to investors in the future. Previous studies on the second-hand market have mainly focused on the market efficiency. The number of papers on the estimation of second-hand vessel values is very limited. This study proposes an artificial neural network model that has not been attempted in previous studies. Six factors, freight, new-building price, orderbook, scrap price, age and vessel size, that affect the second-hand ship price were identified through literature review. The employed data is 366 real trading records of Panamax second-hand vessels reported to Clarkson between January 2016 and December 2018. Statistical filtering was carried out through correlation analysis and stepwise regression analysis, and three parameters, which are freight, age and size, were selected. Ten-fold cross validation was used to estimate the hyper-parameters of the artificial neural network model. The result of this study confirmed that the performance of the artificial neural network model is better than that of simple stepwise regression analysis. The application of the statistical verification process and artificial neural network model differentiates this paper from others. In addition, it is expected that a scientific model that satisfies both statistical rationality and accuracy of the results will make a contribution to real-life practices.

• The Journal of Fisheries Business Administration
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• v.14 no.2
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• pp.15-68
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• 1983

From the economic point of view the fishing port is the complex of installations on land, organized to serve the fishing fleet and its cargo, and is the main link in the production chain of all components of the fishing industry, with the aim of achieving the planned targets with the minimum cost. Fishing port investment decisions have had significant impact on the development aims of Korean fisheries. Fishing port investments in Korea are made mostly by public or semipublic port authorities. Such investments should be judged not purely on the basis of financial profitability but rather on the extent to which they serve the development aims of the fishing industry. This makes the economic appraisal process more complex and presents certain problems in correctly quantifying the economic costs and benefits of the fishing port projects. This study concentrates more on the theoretical economic appraisal models than on the purely financial aspects of fishing port investments and points out the difference between the two approaches. In the result, there is clearly an element of judgment as to whether or not a shadow price needs to be used in estimating economic benefits and costs. From this viewpoint, some attempts are made to provide definitions of the possible economic benefits and costs, and methods for estimating and evaluating them in Part III and IV. Especially queueing theory is applied in the calculation of economic benefits. When a project is contemplated and analysis shows it to Lave a positive NPV, one question that arises is whether it should be implemented now or delayed. In this paper, the first year rate of return method is regarded as a more concise way of solving the timing of investment, At the end of Part IV, risk analysis of fishing port investments is considered. It can be handled in a number of ways, ranging from informal judgment to complex statistical analyses involving large-scale computer models, This paper recommends that evaluators of fishing port investments use the sensitivity analysis indicating exactly how much NPV will change in response to a given change in an input variable, other things held constant. Decisions regarding the amount of capacity to provide must be made in fishing port investments. Providing too much service would involve excessive capital costs. On the other hand, not providing enough service capacity would cause the waiting line of fishing vessels to become excessively long at times. Therefore, in Part V, the optimal number of berths and berth productivity in fishing port are defined as follows: Minimize E(TC) ＝ E(WC)＋E(SC) The minimum of this function is the solution and that is the optimal number of berth and berth productivity in fishing port.