Research Paper

On

International Maritime Affairs and Strategies with Geopolitics and

Sustainability Norms

Track 1: Business & Technology Management Challenges for Indian

Energy & Infrastructure Sectors

Abstract Submission To,

The 7th International Conference on
Energy & Infrastructure Management (ICEIM-2020)
February 27-28, 2020

Submitted by

1. Dhaval Deshpande

Email ID- Dhaval.dpgp18@spm.pdpu.ac.in

MBA, SPM PDPU

2018-20
( Energy and Infrastructure)

2. Vishwa Bhatt

Email ID- Vishwa.bpgp13@spm.pdpu.ac.in

MBA, SPM PDPU

2018-20
( Energy and Infrastructure)
Abstract:

The exploration and discoveries have been an old affair for any country. Its not
always physical trade which happened but the cross country cultural trade as well
that has helped us to grow. Ships are the dark horses which definitely not many
think about but almost 90% of things around us are bought by ship. Right from
the days of Vikings to the days of Arab Oil Spring till present days Trade war,
Something which goes through and survives are the maritime movements and
trades.

The idea of economies of scale assumes its job as the size of the ship continues
increasing, the Overall expense of working a ship may go up however the expense
per unit of vehicle holds descending. It is critical to comprehend this idea.
Consequently, a ship of 80,000 Metric Tons (MT) limit can supplant two boats of a
large portion of the limit, yet its expenses of activity won't double nor will the
speed be decreased. The expense of activity like fuel charges may increment and
the port costs may go up however not in a similar extent. The income will twofold
for conveying double the amount however not costs.

Not just that the arrangement of vessels and space utilization is another very
important factor which makes ships more viable and helps a shipper to create his
value. We see lakhs of mobile phone been transferred through a ship with same
size and dimension which creates the room for space management.

If we compare the costs of freight compared to roadways, Railways and Airplanes

which are 2.28 Rs/Ton, Rs 1.41 /Ton, Above Rs 3 /Ton respectively Compared tp
1.18 /Ton for Ships.

Cargo is again categorized into two

1) Dry bulk
2) Wet bulk

Based on the cargo we decide on the type of ships to take which can carry a
particular cargo specifically.
We would also take a look on the different fuels which are present in competition
with the sustainability challenges present on shipping segment.

This makes the maritime industry very vulnerable at times as we discuss it with
comparative analysis and challenges present in each alternative. Advancement of
LNG as fuel for Ships is the new buzz of town. Though it has its own demerits.

We see some terminologies which are used in shipping industry with some type of
ships and technologies which help them move forward.

This is one industry where geopolitics plays a major role and affects the demand
and supply of the world. We will take a look on the present geopolitics of the
world and how the future of demand and supply correlation with geopolitics will
affect the shipping industry. We take into consideration indian Shipping business
and its growth as majorly Indians are not much into this project. We also go ahead
with the business opportunities in india as a market with a wide scope in inland
waterways as a plan of SAGARMALA Project.

Major bulk cargo shipped is Oil and gas and it has a very important strategic
involvement in any country. Thus we look into the suppliers and buyers of oil to
understand the business at the same time understand the importance of major
choke points across the world which may create huge negative variance in trade.

We see a basic supply chain and terminologies used in shipping industries for
freight movement. Also the basic documents and type of contracts which are
present which helps a business create transparency and remove major hassle.

There is a huge potential created in north pole area because of ice melting due to
global warming.
Capital costs account for nearly 37% of total costs. This would include the repayment of loans for the initial
purchase of the ship, payment to banks and/or equity investors. The ship may have been financed with a loan for 5
– 10 years and the repayment is carried out in a phased manner.

Ship owners will assess their operational costs and look at the market sentiments before deciding
on the way they will commercially operate ships. There are many ways in which ships are hired or
chartered. The most common methods are:
1) Time Charter
2) Voyage Charter
3) Demise/Bareboat Charter
4) Subletting
5) Contracts of Affreightment
6) Consecutive Voyages
7) Slot Charters

On the off chance that money related execution is the way to survival in the delivery advertise,
at that point how is it accomplished? The three key factors with which shipowners need to work
are:

• the income got from sanctioning/working the ship;

• the expense of running the ship;

• the technique for financing the business.

The connection between these income things is demonstrated diagrammatically in Figure 3.5.

Income, spoken to by the case on the left, is gotten from exchanging the ship. Despite the fact
that shipowners don't for the most part control the value they get per ton of load, there are
different methods for crushing more income out of the ship. Expanding payload ability to
accomplish economies of scale is one arrangement. A couple of thousand tons of additional
income winning limit can have a significant effect. Expanded efficiency by operational
arranging, diminishing backhauls, limiting time off contract, improved deadweight tonnage use
and cutting load taking care of time are different conceivable outcomes. From the income
earned.

References:

1) Journal of maritime affairs

2) International Maritime Organization
http://www.imo.org/en/KnowledgeCentre/ShipsAndShippingFactsAndFigures/Statisticalr
esources/Pages/default.aspx
3) European commission
https://ec.europa.eu/maritimeaffairs/documentation/studies_en?page=7 4/9/19
4) Maritime Transport 2018 https://unctad.org/en/PublicationsLibrary/rmt2018_en.pdf
5) Maritime Act
http://www.coastalwiki.org/wiki/Integrated_Maritime_Policy_for_the_European_Union