Course price

Discounts

10% group discount is available for registering 3 or more participants from the same company.

Overview

The BIMCO 180 Seminar is designed for stakeholders who want to understand the economic drivers behind commercial shipping. It is particularly tailored for individuals without a commercial shipping background who wish to learn how maritime economics influences global trade and economic development.

Maritime economics is essential for comprehending the intricate relationships between shipping and the global economy. Throughout this seminar, participants will explore how shipping serves as a crucial link in international trade, influencing freight rates, market structures, and overall economic activity.

Key topics will include the principles of supply and demand specific to shipping, which impact freight rates and capacity. Participants will also gain an understanding of various market structures within the shipping industry, from perfect competition to oligopoly, and how these frameworks affect pricing strategies and profitability.

Moreover, the seminar will address strategic economic decision-making processes that are vital for navigating today's complex maritime landscape. You will learn about cost structures, risk management, and the effects of global economic trends on shipping operations, equipping them to better engage with commercial stakeholders and understand their concerns.

What will you learn?

In the BIMCO 180 Seminar, you will understand Maritime Economics comprehensively, focusing on the economic principles that drive commercial shipping.

Session 1: Core Economic Principles in Shipping

Time: 90 minutes
Objective: Introduce participants to the basic economic concepts that underpin the commercial shipping industry.

• Welcome and Introduction (10 minutes)
• Overview of session objectives.
• Introduction of the instructor and participants.
• The Role of Shipping in the Global Economy (15 minutes)
• Overview of how shipping supports global trade and economic development.
• Key statistics demonstrating shipping's role in global GDP and trade volumes.
• Introduction to the concept of shipping as a derived demand from global trade.
• Supply and Demand in Shipping (20 minutes)
• Explanation of supply and demand principles as they apply to the shipping industry.
• Factors affecting supply (fleet size, vessel availability, new builds, scrapping).
• Factors affecting demand (global trade volumes, economic cycles, commodity prices).
• Discussion on how these factors influence freight rates and shipping capacity.
• Market Structures in Shipping (20 minutes)
• Overview of different market structures in shipping (perfect competition, oligopoly, monopolistic competition).
• Characteristics of the shipping market and its segments (container, bulk, tanker).
• Impact of market structure on pricing power, competition, and profitability.
• Freight Rate Determination and Pricing Strategies (15 minutes)
• Introduction to how freight rates are determined in different market conditions.
• Discussion on spot vs. contract freight rates.
• Strategies used by shipping companies to optimise pricing (bunker adjustment factors, surcharges, etc.).
• Interactive Exercise: Analysing Supply and Demand Scenarios (10 minutes)
• Participants analyse a hypothetical scenario where changes in supply or demand impact freight rates.
• Discussion on potential strategies for shipping companies to respond to these changes.
• Q&A and Wrap-Up (5 minutes)
• Open floor for participant questions.
• Summary of key takeaways and additional resources for further learning.

 

Session 2: Strategic Economic Decision-Making in Shipping

Objective: Explore the advanced economic factors influencing commercial shipping decisions, including cost structures, risk management, and the impact of global economic trends.
Time: 90 minutes

• Introduction and Recap of Session 1 (10 minutes)
• Quick recap of key points from the first session.
• Overview of the objectives for the current session.
• Cost Structures in Shipping (20 minutes)
• Breakdown of the major cost components in shipping operations (capital costs, operating expenses, fuel costs, port fees).
• Discussion on economies of scale and how they affect shipping companies' cost structures.
• Analysis of fixed vs. variable costs and their impact on pricing and profitability.
• Risk Management in Shipping Economics (20 minutes)
• Overview of the key risks in shipping (market risk, operational risk, financial risk).
• Introduction to hedging strategies, such as Forward Freight Agreements (FFAs) and bunker fuel hedging.
• Discussion on the role of insurance in mitigating economic risks.
• Impact of Global Economic Trends on Shipping (20 minutes)
• Analysis of how global economic cycles (boom, recession) influence shipping demand and freight rates.
• Discussion on the impact of geopolitical events, trade policies, and environmental regulations on shipping economics.
• Overview of emerging trends (digitalisation, green shipping) and their economic implications.
• Interactive Case Study: Strategic Decision-Making in a Changing Market (15 minutes)
• Participants work through a case study where they must make strategic decisions in response to changes in global economic conditions.
• Discussion on the rationale behind different strategies and potential outcomes.
• Final Q&A and Wrap-Up (5 minutes)
• Open floor for participant questions.
• Summary of key takeaways and further resources for ongoing education.

 

Starting time (for both session 1 and 2):

14:00 UTC
15:00 CET

See the time in your local time zone.

Why choose to participate?

Participating in the BIMCO 180 Seminar offers a condensed, invaluable insight for staff working in NGOs and government institutions focused on maritime issues. This seminar provides an opportunity to understand the economic principles that drive the commercial shipping industry, equipping you with the basic knowledge necessary to engage effectively in policy discussions and decision-making processes.

You will learn how shipping impacts global trade and economic development by exploring key concepts such as supply and demand, market structures, and risk management. This understanding is crucial for addressing the challenges and opportunities the maritime sector faces today.

How will this course help your professional development?

The BIMCO 180 Seminar offers an intensive and efficient exploration of maritime economics, condensed into two engaging 90-minute sessions. This focused format lets you quickly grasp key concepts for understanding the commercial shipping industry.

 

In just three hours, we will cover critical aspects such as supply and demand dynamics, market structures, and freight rate determination, equipping you with a well-rounded perspective on the economic drivers of shipping. The seminar also addresses strategic decision-making and risk management, essential skills for navigating today's complex maritime landscape.

 

By participating in this seminar, you will gain valuable insights and practical knowledge that can be immediately applied to your role. This will enhance your professional development and ability to contribute effectively to maritime governance and policy initiatives.

Course materials

BIMCO issues electronic course files as an Adobe PDF file enabling you to make personal notes. All documentation and presentations will be in English. Course access details will be provided a week before the course start date if the registration is completed.

Speakers

Organiser