Shipping Econs (Part 5)

How do shipping companies decide when a ship should be scrapped?

• Based on the age of the ship

• When the ship becomes obsolete

• When the sale and purchase market indicates it

• When the ship completes its twenty-year lifespan

What factor plays a significant role in deciding when a ship should be scrapped?

• Age of the ship

• Market cycles

• Economic conditions

• Owner's preference

What is the primary influence in determining when a ship reaches the demolition market?

• Age of the ship

• Economic conditions

• Shipping market cycles

• The availability of scrap dealers

What helps make poorly defined economic decisions about scrapping ships clearer?

• Market cycles

• Age of the ship

• Government regulations

• Shipping company decisions

How has the global trade revolution impacted sea transport?

• Made sea transport more expensive

• Reduced the cost of freight

• Increased the cost of sea transport

• Limited the growth of shipping companies

What percentage of the total value of world trade did the cost of freight represent in 2019?

• 3.6%

• 10%

• 20%

• 50%

What is one reason for the decrease in the cost of transporting coal?

• Reduced demand for coal

• Increased shipping market cycles

• Economies of scale

• Government subsidies

How did ship size change in the dry bulk market from 1981 to 2006?

• It decreased significantly

• It remained constant

• It increased for bulk carriers but decreased for tankers

• It decreased for bulk carriers but increased for tankers

Which type of tanker specializes in the long-haul crude oil trade?

• Suezmax

• Aframax

• Panamax

• VLCC

What is the key to achieving lower unit costs in sea transport?

• Reducing ship size

• Increasing cargo capacity

• Optimizing cargo handling costs

• Leveraging economies of scale