Question

a. Discuss the key factors affecting the freight market for the demand for and supply of shipping service.

b. explain the lay-up (theory) of a ship list the crucial elements to be taken into consideration before a ship is laid up.

Answer 1

(a) Key factors

(i) Transport Cost
(ii) Elasticity of Demand
(iii) Political Events
(iv) Seaborne Commodity Trade
(v) World Economy
(vi) Average Haul
(vii) Competition

(b)

The term 'Laid-up' or 'Lay-up' of ships implies ships that have incidentally been removed from productive help because of the absence of contract or load. Some of the time, increment in the cargo costs become inadequate to conceal for the ships' running expenses. 'Laying up' ships, subsequently, sounds good to the proprietors during such unpleasant occasions.

The following are the crucial elements to be taken into consideration.

• Shelter from untamed oceans, twists, climate to evade further superfluous auxiliary harms that may wind up demonstrating expensive for the effectively unstable organization
• Security and its actualizing impact in the area. Regardless of whether the territory has a fitting backup plan thinking about the ISPS, SOLAS and ISM guidelines
• Proximity to exchanging/working regions for simple re-preparing in the event of Hot-Lay up periods. For instance, zones close to Singapore, Gibraltar, Rotterdam, and so on are hotbeds for simple business restoration due to their vital and geologically fitting positions
• Availability to fix workshops, extras, and stores as required if fixes or docking is to be embraced
• Availability to general and utility administrations, for example, new water, arrangements, fuel as required for operational reasons as these might get scant during since a long time ago lay-up periods
• Sustainable Port, Anchorage, and Wharf duty/charges
• If Anchored, water profundity to be adequate with a decent holding ground as the lay-up may keep going for a considerable length of time, even months
• Availability of appropriate boat specialists dealing with the majority of the port documentation and group changes as the need emerges