ICM125-Maritime Economics and Business

Module Provider: ICMA Centre
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Autumn term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2022/3

Module Convenor: Ioannis Alexopoulous
Email: i.alexopoulos@reading.ac.uk

Type of module:

Core

Summary module description:

This module will be taught by Mr. Ioannis Alexopoulos and Prof. George Alexandridis

Sea transportation is a crucial catalyst for world trade and economic growth. The globalization of the world economy, increased competition and rapid technological changes have resulted in lower transportation costs. Price volatility, uncertainty, capital concentration and global competition within the shipping markets make economic skills essential for the success of shipping organizations. The course focuses particularly on the relevant shipping markets, supply and demand conditions and decision making based on the structure of the cash flows that shipping companies generate.

Aims:

The aim of this module is to provide an understanding of the structure of the shipping business, its sectors and organisations and the maritime economic principles and policies related to the effective management of shipping companies operating within the global competitive environment.

Assessable learning outcomes:

By the end of the module, it is expected that the student will be able to:

• Discuss the economic structure of the shipping industry and its subsectors.Ìý


• Describe the sources of demand for shipping services, the types of ships carrying the cargoes and the matching of these two parts.


• Analyze the relevant shipping markets, such as the freight, the shipbuilding, the demolition and the vessel sale and purchase markets, and under stand the inter-relationships between them.Ìý


• Evaluate the importance of the industry’s cost structure and the necessity for cost minimization.


• Be able to calculate cash inflows for the shipping company that emanate from different types of freight contracts; specifically be able to carry out a voyage estimation.Ìý


• Discuss the environment into which shipping business operate, and the types of risks faced by market participants in the s ector.Ìý


• Explain the key elements in Ship Regulation and Maritime Forecasting.

Additional outcomes:

Students taking this module will be equipped with an understanding of the workings of the shipping markets from an economic perspective. Candidates will develop analytical and other generic skills, which facilitate the rigorous economic analysis of the main shipping markets.

Outline content:

• Introduction to the Shipping Business and Sectors


• The Economics of the Shipping Industry (Dry Bulk, Liquid Bulk and Liner)


• Types of Freight ContractsÌý


• The main Markets of the Shipping Industry and the importance of the Shipping Cycle


• Costs and Revenue in Shipping


• Cash flow based decisions (Voyage Estimation)Ìý


• Investments and underlying risks in the shipping industry.


• The Regulatory Framework in Shipping,Ìý


• Maritime ForecastingÌý


• Ship Registration and Taxation Issues

Global context:

International perspectives are provided through:

• the readings that students are provided with;


• the cases discussed in the class;


• examples used by the professor in class;

Brief description of teaching and learning methods:

There will be 10 3-hour sessions consisting of 25 hours of lectures, 2 hours of practice based seminars and 3 hours of speeches from industry practitioners. The techniques used to achieve the stated module objectives will consist of a combination of active teaching, question-answer sessions, class discussions, class assignment and examination.

Summative assessment- Examinations:

One (1) Exam - Three (3) Hours

Summative assessment- Coursework and in-class tests:

One (1) Group Assignment -3,000 Words - submission at the final week of the term

Formative assessment methods:

Penalties for late submission:

The below information applies to students on taught programmes except those on Postgraduate Flexible programmes. Penalties for late submission, and the associated procedures, which apply to Postgraduate Flexible programmes are specified in the policy £Penalties for late submission for Postgraduate Flexible programmes£, which can be found here: