• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2005.10a
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• pp.335-340
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• 2005

This thesis tries to evaluate the economic benefit of space chartering in comparison with time chartering with respect to mega container ships. For this it reviews the method of obtaining ship's carrying capacity such as time chartering and space chartering. Based on this, it tries to make comparison between the time chartering and space chartering on economic base. Finally, it suggest the economic benefit of space chartering with direction for further study.

• Journal of Navigation and Port Research
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• v.30 no.8 s.114
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• pp.663-668
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• 2006

This thesis tries to evaluate the economic benefit of space chartering in comparison with time chartering with respect to mega container ships. For this it reviews the method of obtaining ship's carrying capacity such as time chartering and space chartering. Based on this, it tries to make comparison between the time chartering and space chartering on economic base. Finally, it suggest the economic benefit of space chartering with direction for further study.

• Journal of Navigation and Port Research
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• v.40 no.5
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• pp.337-343
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• 2016

The core decisions of bulk shipping businesses can be summarized as the timing and the choice of period for which carrying capacity is traded. In particular, frequent decisions to trade freight either with repeated spot transactions or with a one-off long-term deal critically impact business performance. Even though a variety of freight trading strategies can be employed to facilitate the decisions, chartering practitioners have not been active in utilizing these strategies, and academic research has rarely proposed applicable solutions. The specific properties of freight as a tradable commodity are not properly reflected in existing studies, and limitations have been reported in their application to the real world. This research focused on the establishment of applicable freight trading strategies by taking into account two properties of freight: time perishability and term-dependant pricing. In addition to traditional trading strategies, artificial neural networks were applied for the first time to the test of freight trading strategies. The performances of the trading strategies were measured and compared to produce a remarkable outperformance of the ANN. This research is expected to make a significant contribution to chartering practices by enhancing the quality of chartering decisions and eventually enabling the effective management of freight rate risk. In addition to methodological expansion, the result will propose a way to approach the controversial issue of freight market efficiency.

• Journal of Navigation and Port Research
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• v.27 no.3
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• pp.289-295
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• 2003

The international oil majors have been reducing the size of their own oil tanker fleet since early 1980s. Like international oil majors, the Korean refineries are becoming more dependent on tanker chartering rather than tanker ownership for their oil transportation since the 1990s. They also prefer spot charter to time charter and this kind of trend has continued up to now. Consequently, this paper attempted to find the factors influencing changes in tanker fleet composition. To attain the object of the paper, an empirical study is adopted using the ten decision-making factors derived from preceeding studies. The findings are that MARPOL and OPA 90, and transportation costs are the most important factors influencing an oil tanker fleet composition.

• Journal of Navigation and Port Research
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• v.42 no.5
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• pp.341-346
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• 2018

Supramax bulk carriers cover a wide range of ocean transportation requirements, from major to minor bulk cargoes. Market forecasting for this segment has posed a challenge to researchers, due to complexity involved, on the demand side of the forecasting model. This paper addresses this issue by using technical indicators as input features, instead of complicated supply-demand variables. Artificial neural networks (ANN), one of the most popular machine-learning tools, were used to replace classical time-series models. Results revealed that ANN outperformed the benchmark binomial logistic regression model, and predicted direction of the spot market with more than 70% accuracy. Results obtained in this paper, can enable chartering desks to make better short-term chartering decisions.

• Journal of Korea Port Economic Association
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• v.27 no.2
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• pp.297-311
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• 2011

This paper deals with a strategic investment decision model for improving investment profit in shipping industry. Despite the quantitative expansion of Korean shipping business, many shipping firms have suffered financial difficulties due to financial and operating risks that result from the characteristics of capital-intensive business as well as of volatility of shipping markets. As a result, managers in charge of making an investment decision, particularly in tramper business sector, are required to take both financial and operating risk factors into consideration. Put it differently, managers are strongly recommended to avoid these risks by ship asset play; buy-low and sell-high, which results in considerable capital gain and cost reduction. In addition, managers in shipping industry are also recommended to consider the ship chartering investment alternative when the freight markets show extreme volatility as the case of 2008 triggered by sub-prime mortgage financial crisis in USA. For example, the BDI suffered plunging down from 1000 in 2008 to 100 in 2010. Consequently, the 4th largest shipping company in Korea, DAEHAN Shipping Co., has collapsed primarily due to excessive tonnage expansion during the peak time of bulk market. In sum, the strategic investment decision model, suggested in this paper, is designed to include such factors as capital gain by asset play, timely chartering for alternative shipping service, and optimization of operating profit by tonnage adjustment in accordance with change in the shipping markets concerned.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2003.05a
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• pp.257-264
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• 2003

The international oil majors have been reducing the size of their own oil tanker fleet since from the beginning of 1980s. Like international oil majors, the Korean refineries are getting more dependent on tanker chartering than tanker ownership for their oil transportation since 1990s. They also prefer spot charter to time charter and this kind of trend continue up to today. Consequently, this paper attempted to find out factors influencing changes in tanker fleet composition. To attain the object, a empirical study is adopted using the ten decision making factors derived from the preceeding study. The findings are that MARPOL and OPA 90, and transportation cost are the most important factors influencing on oil tanker fleet composition.

• Journal of Korea Port Economic Association
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• v.21 no.1
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• pp.1-21
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• 2005

It has been more recent trends in container trade to make bogger ship from shipowners that many more parties concerned are getting involved. Well, it is natural to swift these situations if we have looked into container trade market in present time, which a lot of trade volumes has increased in world economy. Thus, supply side of shipping service needs to employ more capacity in the shipping market, then newbuilding may be compulsory options, that is deployment of larger ships. To cope with market situations as able shipowner, some alternatives can be also adopted, such as newbuilding, chartering and securing the space by strategic alliance. But whatever he does, shipowner has to keep in mind to prepare for the future. This is much more important factor considered to make investment decision in case of newbuilding and then he can make more efficient decision as well. However, there has been a little problems arisen due to larger ship employed on the trade route, which is linked with seaport, shipping companies and freight rates as well. Although shipowner decides to build new larger vessel as one of corporate strategic decision, there are many questions to be considered in advance. Therefore, in order to take more efficient decision, shipowner has to take into an account various situations surrounded, and then it can lead truly thoughtful decision making process.

• Journal of Navigation and Port Research
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• v.26 no.5
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• pp.481-489
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• 2002

The purpose of this paper is to construct the model that enables to estimate the amount of tanker voyage charter by region or by ship size. This paper decomposed the mechanism of voyage and time charter step by step, and apply the accumulated date of KMI chartering database. The results of the estimation is that the amount of voyage charter in 2007 will be 25,751 or 23.3% increase compared with that of 2000. And the amount of voyage charter in Korea will be 9.3% of the world amount, and will be 26.6% of the Far East amount.

• Journal of Navigation and Port Research
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• v.38 no.1
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• pp.81-87
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• 2014

Today, it is a trend that the demand of offshore plants is constantly growing, along with the advances in technology which are thoroughly needed to the rise of international oil price as well as offshore energy development. In addition, The main sectors of ship building, sale & purchase and chartering market regarding various kind of offshore supporting vessels that supports the business of offshore energy development is now maintaining its steady growth. However, in domestic case, the contract of time charter occasions regarding the offshore support vessel are almost non-existing situation. Thus, the relevant practical study regarding to implementation of various kinds of legal disputes and applicable laws that can be properly applied in time charter and the field of sale & purchase needs to be conducted actively. Therefore, the concept of this study has included the wide comparisons of other special provisions with the existing time-charter by making its base on "Supply Time 2005" which is the worldwide standard form of time charter in offshore support vessel market and its investigation, aiming to provide practical guidance and procedure for implementation of arbitration and applicable law issues which can be applied in legal disputes between parties.