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Shipping Economics & Investment

13th January 2020 @ 9:00 am - 14th January 2020 @ 5:30 pm

The course aims to provide delegates with both a theoretical foundation as well as practical hands-on experience on modern shipping economics and investment. It provides delegates with the essential knowledge of shipping economics, operations and investment management.

The programme covers the micro-economic structure of the shipping markets including freight, second-hand, newbuilding and scrap markets and presents how these shipping markets interact.

Formulation of different types of shipping contracts is also discussed and practical examples are provided.

The programme then continues with an overview of specialised shipping sectors and liner shipping industry as well as a thorough discussion on current trend and developments in the shipping industry including fuel efficiency and cost management.

The second day focuses on fundamentals of shipping investment including cash flow projection and analysis, different techniques used in capital budgeting techniques, capital structure and cost of capital in shipping projects, investment management of shipping projects, asset allocation and shipping investment strategies.

Syllabus

Day One

Shipping Economics

Shipping industry introduction
– Market structure, fleet & international trade
– Ownership
– Ship registries and regulations

Analysis of shipping markets
– Freight market: micro & macro analysis
– Second-hand market: the S&P process, key value drivers, vessel valuation
– Newbuilding market: shipbuilding supply & demand factors, determinants of newbuilding prices
– Scrap market and price determination

Costs & revenue management
– Types of shipping contracts, negotiation and price
– Charterparties (dry bulk & tanker), timecharter
– Costs: capital, operating & voyage costs, voyage estimation

Specialised shipping sectors
– LNG, LPG & chemical: major trades and players
– Liner & container shipping: standardisation, pricing strategies and factors

Trends & developments in shipping & freight markets
– Environmental: regulations, ballast water and emissions
– Operational: ship design, fuel efficiency and operational optimisation

Day Two:

Shipping Investment

Cash flow analysis of shipping projects
– Cash flow projection, operating costs & revenue, capital cost, repairs & special surveys
– Cost of capital, break even analysis and loan repayment

Project appraisal and investment decisions in shipping
– NPV
– IRR
– PI
– Payback
– Investment appraisal- Market conditions, loan structure and capital costs

Capital structure and cost of capital in shipping projects
– Determination of cost of capital, capital asset pricing model, multifactor model
– Capital structure, WACC and optimal leverage
– Asset and project valuation techniques, secondhand, newbuilding and scrap valuation

Investment decision and uncertainty in shipping
– Application of risk analysis in projects and investment
– Scenario analysis, probabilistic scenarios and simulation techniques
– Real Options Analysis, opportunities in ship valuation and projects

Investment management in shipping
– Investment strategies, timing & diversification
– Dynamic and adaptive asset allocations and performance evaluation
– Risk based asset allocation & asset play
– Tactical asset allocation and shipping equity investment

Course Leaders

Prof. Amir Alizadeh
Shipping Economics and Finance, Cass Business School

Prof. Michael Tamvakis
Shipping Economics and Finance, Cass Business School

The course leaders, Prof. Amir Alizadeh and Prof. Michael Tamvakis of Cass Business School, are both internationally recognised academics in the fields of shipping and commodity finance, and risk management. Their theoretical and applied research work has been published in leading academic and professional journals and they also provide consultancy services to the industry on different aspects of commodity and shipping risk management.

Cost

£1575 + VAT

Bookings

Please contact Shena Cheng. Email: scheng@navigatepr.com

Click here to download the complete 2020 Baltic Exchange Academy programme. 

Details

Start:
13th January 2020 @ 9:00 am
End:
14th January 2020 @ 5:30 pm
Event Category:

Venue

The Baltic Exchange
38 St Mary Axe
London, EC3A 8BH United Kingdom
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