Postgraduate

Modules

Modules

MAR8074 : Shipping Market Analysis and Risk Management

Semesters
Semester 1 Credit Value: 10
Semester 2 Credit Value: 10
ECTS Credits: 10.0

Aims

1. To give students a thorough knowledge of the shipping industry, its structure, the nature of ship owners and the practical issues facing the industry.
2. To provide students with a detailed understanding of the main shipping markets.
3. To give students the generic ability to analyse any shipping market and to appropriately structure a report relating to that market.
4. To provide students with an understanding of the nature of financial risk, the workings of the international monetary system and the use of financial derivatives for hedging purposes.

Outline Of Syllabus

1. The nature and motivation of ship owners
2. Sector reports from international institutions and ship brokers
3. Introduction to data sources and data processing
4. Current issues facing the shipping sector
5. Market identification, definition and metrics
6. Cargo definitions and ship size categorisation
7. Maritime geography
8. The demand for shipping services, shipping supply, shipping market dynamics, cycles and volatility
9. Freight rate determination and characteristics
10. Forecasting
11. Mechanisms for changing and regulating shipping capacity
12. Financial risk in international transport
13. Hedging, currency risk management and fuel price risk
14. Empirical issues in financing international transport

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Guided Independent StudyAssessment preparation and completion11:301:30Examination (Semester 1)
Guided Independent StudyAssessment preparation and completion112:0012:00Examination Revision (Semester 2)
Guided Independent StudyAssessment preparation and completion112:0012:00Examination revision (Semester 1)
Guided Independent StudyAssessment preparation and completion11:301:30Examination (Semester 2)
Scheduled Learning And Teaching ActivitiesLecture122:0024:00Formal lecture series in semester 2
Scheduled Learning And Teaching ActivitiesLecture32:006:00External lecture series
Guided Independent StudyAssessment preparation and completion115:0015:00Group report
Guided Independent StudyDirected research and reading164:0064:00Consolidating lecture notes and further reading
Guided Independent StudyDirected research and reading64:0024:00Preparatory reading for seminars
Scheduled Learning And Teaching ActivitiesSmall group teaching32:006:00Tutorials
Scheduled Learning And Teaching ActivitiesFieldwork28:0016:00Industry visits
Scheduled Learning And Teaching ActivitiesScheduled on-line contact time63:0018:00Structured seminar series in semester 1
Total200:00
Teaching Rationale And Relationship

Teaching will be spread over two semesters. In Semester 1 teaching will be primarily through a series of seminars to give students a broad understanding of the subject and the issues relating to the subject. Each seminar will have a theme and students will be required to read key texts in preparation for each. In Semister 2 teaching will be primarily through lectures to provide the theoretical context to the knowledge gained in the first Semester. The majority of the teaching will be undertaken from within the School but for one subject, complex financial instruments for risk management, an external expert will assist to cover this specialist area. Lectures will be supported by tutorials to provide an opportunity to consolidate understanding of material considered in lectures and to practise quantitative techniques introduced in lectures.

To supplement teaching from within the School, lectures will be given by external lecturers that are practising in industry to give a first hand view of the issues relating to the industry. Two visits will also be undertaken, including a day utilising the School’s research vessel, the Princess Royal, to give students a first hand experience of the issues relating to work and safety at sea.

Assessment Methods

The format of resits will be determined by the Board of Examiners

Exams
Description Length Semester When Set Percentage Comment
Written Examination901A30N/A
Written Examination902A40N/A
Other Assessment
Description Semester When Set Percentage Comment
Report2M30Individual report - 15 hours
Assessment Rationale And Relationship

The written examination provides students with an opportunity to demonstrate knowledge and understanding of the course material and to apply the tools and techniques considered in the course.

The group report provides students with an opportunity to demonstrate communication and research skills, and to illustrate their depth of understanding of the course subject matter.

Reading Lists

Timetable