• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2004.04a
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• pp.333-341
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• 2004

This paper describes not only the complexities of LNG business including shipping sector but also its own current environmental changes. Furthermore, system dynamics (VENSIM analysis) as a methodology is introduced to analyze the potential LNG shipping market in the future. As a result of the VENSIM analysis, potentiality of the spot LNG shipping market is systematically established in connection with embodiment of the spot LNG market. This paper suggests three methods, which are centered on newbuildings of ships, for the shippers to prepare for the spot LNG shipping market on the basis that maritime economics can make a direct contribution to the shippers' business decision-making.

• Journal of Korea Port Economic Association
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• v.39 no.4
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• pp.243-254
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• 2023

This study investigates the factors contributing to price fluctuations in the shipscrapping market, the final stage in a vessel's life cycle. Shipping companies make decisions on ship dismantling based on factors such as declining freight rates, increasing vessel age leading to higher costs, or compliance with new environmental regulations. Utilizing the FMOLS (Fully Modified Ordinary Least Squares) and VECM (Vector Error Correction Model) methodologies, the research explores the long-term elasticities of factors influencing shipscrapping prices and examines short-term causal relationships. Using a time series dataset spanning from December 2015 to April 2023, covering a total of 90 months, the study focuses on the shipscrapping prices of Capesize vessels in India and Bangladesh, which constitute a significant portion of the shipbreaking market. The findings indicate that, in the long term, shipscrapping prices are closely related to global scrap prices, 20-year-old secondhand Capesize vessel prices, newbuilding prices, and exchange rates. In terms of short-term causal relationships, an increase in global scrap prices induces a rise in shipscrapping prices, while the remaining variables do not contribute to such increases. Specifically, an escalation in shipscrapping prices is associated with increased prices of 20-year-old secondhand vessels, newbuilding prices, and exchange rates. However, the other variables do not show a significant influence on short-term increases in shipscrapping prices.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2012.10a
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• pp.55-57
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• 2012

Suez운하를 이용할 경우 부산항에서 로테르담항까지의 수송거리가 11,340마일이 북극해 항로를 이용할 경우 6,860마일로 36%가 줄고 수송기간도 10일 이상 단축되므로 북극해항로를 통한 유럽과 아시아간의 상업적인 수송이 이뤄진다면 해운회사들의 물류비용이 대폭 절감될 것으로 전망된다. 이런 시점에서 2011년 9월 한-러 국장급 해운회담이 열렸으며, 2011년 11월 23일 부산 누리마루 APEC House에서 "북극해항로 상업운항의 현황과 전망"이라는 주제로 국제세미나가 개최 되었다. 현재 북극해 항로를 통과한 선박이 2007년 2척, 2008년 3척, 2009년 4척, 2010년 10척이었던 것이 2011년에는 34척 총 82만톤의 통과 수송이 이뤄졌고, 러시아 북극내의 물동량은 2백20만톤에 달할 것으로 전망되었으며, 2012년의 통과 물동량은 100만톤을 상회 할 것으로 전망된다. 이에 북극해 항로에 대한 소개와 빙하지역을 항해하는 선박에 대한 운항지침에 대하여 검토해보고저 한다.

• Journal of Navigation and Port Research
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• v.28 no.5
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• pp.385-393
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• 2004

This paper describes not only the complexities of LNG business including shipping sector but also its own current environmental changes. Furthermore, system dynamics (VENSIM analysis) as a methodology is introduced to analyze the potential LNG shipping market in the future. As a result of the VENSIM analysis, potentiality of the spot LNG shipping market is systematically established in connection with embodiment of the spot LNG market. This paper suggests three methods, which are centered on newbuildings of ships, for the shippers to prepare for the spot LNG shipping market on the basis that maritime economics can make a direct contribution to the shippers' business decision-making.

• Journal of the Korean Society of Marine Environment & Safety
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• v.20 no.1
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• pp.26-32
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• 2014

The increased threat to commercial shipping by Somalia-based pirates has triggered an increased use of PMSC(Private Maritime Security Contractors). The use of PMSC to protect merchant ships against Somali-based piracy threat seems to have been most effective counter-piracy measures. However, there are various legal and practical questions around using PMSC and PCASP(Privately Contracted Armed Security Personnel) on board at sea. This paper aims to study the regulation and its problems of PMSC and PCASP on board to protect merchant ships against Somali-based piracy in the Indian Ocean and Gulf of Aden. In particular, this paper focuses on the legal issues including jurisdictional issues of PCASP on board merchant vessels, use of force by PCASP in self-defense, and authority for using PMSC. Currently, the legal framework relating to use of PMSC and PCASP on board protecting ships from Somali-based piracy is complex, sometimes ambiguous or inconsistent, and currently in a state of flux. Thus, this paper concludes that at this juncture an effort to coordinate this legal framework is necessary, as regards both the interpretation of existing rules related to PCASP on board merchant ships under UNCLOS(United Nations Convention on the Law of the Sea) and the creation of new rules. Also, this paper suggested that there is an urgent need to establish the PMSC-specific laws in Korea.

• Journal of Digital Convergence
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• v.14 no.6
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• pp.157-165
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• 2016

The purpose of this study was to analyze the effect of the shipping industry real economy index on the stock prices of domestic shipping companies. The parameters used in this analysis were the stock price of H Company in South Korea and shipping industry real economy indices including BDI, CCFI and HRCI. The period analysis was from 2012 to 2015. The weekly data for four years of the stock price index of shipping companies, BDI, CCFI, and HRCI were used. The effects of CCFI and HRCI on the stock price index of domestic shipping companies were analyzed using the VAR model, and the effects of BDI on the stock price index of domestic shipping companies were analyzed using the VECM model. The VAR model analysis results showed that CCFI and HRCI had negative effects on the stock price index, and the VECM model analysis results showed that BDI also had a negative effect on the stock price index.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2006.06b
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• pp.13-18
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• 2006

In this paper, occurrence tendency of the sick and wounded on board ship is analyzed. The medical management systems according to shipping companies are investigated. Furthermore, comparative analysis with the medical support system for seafarers in advanced country is carried out.

• Journal of Navigation and Port Research
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• v.47 no.3
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• pp.167-173
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• 2023

The manufacturing industry is the backbone of the Korean economy. Among them, the petrochemical industry is a strategic growth industry, which makes a profit through reexports based on eminent technology in South Korea which imports all of its crude oil. South Korea imports whole amount of crude oil, which is the raw material for many manufacturing industries, by sea transportation. Therefore, it must respond swiftly to a highly volatile tanker freight market. This study aimed to make an early warning model of crude oil shipping market using a signal approach. The crisis of crude oil shipping market is defined by BDTI. The overall leading index is made of 38 factors from macro economy, financial data, and shipping market data. Only leading correlation factors were chosen to be used for the overall leading index. The overall leading index had the highest correlation coefficient factor of 0.499 two months ago. It showed a significant correlation coefficient five months ago. The QPS value was 0.13, which was found to have high accuracy for crisis prediction. Furthermore, unlike other previous time series forecasting model studies, this study quantitatively approached the time lag between economic crisis and the crisis of the tanker ship market, providing workers and policy makers in the shipping industry with an framework for strategies that could effectively deal with the crisis.

• Journal of Korea Port Economic Association
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• v.27 no.2
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• pp.297-311
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• 2011

This paper deals with a strategic investment decision model for improving investment profit in shipping industry. Despite the quantitative expansion of Korean shipping business, many shipping firms have suffered financial difficulties due to financial and operating risks that result from the characteristics of capital-intensive business as well as of volatility of shipping markets. As a result, managers in charge of making an investment decision, particularly in tramper business sector, are required to take both financial and operating risk factors into consideration. Put it differently, managers are strongly recommended to avoid these risks by ship asset play; buy-low and sell-high, which results in considerable capital gain and cost reduction. In addition, managers in shipping industry are also recommended to consider the ship chartering investment alternative when the freight markets show extreme volatility as the case of 2008 triggered by sub-prime mortgage financial crisis in USA. For example, the BDI suffered plunging down from 1000 in 2008 to 100 in 2010. Consequently, the 4th largest shipping company in Korea, DAEHAN Shipping Co., has collapsed primarily due to excessive tonnage expansion during the peak time of bulk market. In sum, the strategic investment decision model, suggested in this paper, is designed to include such factors as capital gain by asset play, timely chartering for alternative shipping service, and optimization of operating profit by tonnage adjustment in accordance with change in the shipping markets concerned.

• Journal of Navigation and Port Research
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• v.37 no.1
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• pp.113-121
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• 2013

IMO(International Maritime Organization) is existed the movement for revising ISM Code so that the maintenance history and the trouble information given trading in a ship can be transferred. An empirical analysis was made on the influence that will have upon shipping industry through surveying on the recognition on ISM Code revision in employees of the relevant field and on the expected problems given being amended ISM Code as the above. In conclusion, the positive effect is judged to be more in the aspect of ship safety, which is the aim of ISM Code, rather than the negative effect, which may take place given being revised ISM Code. In other words, the clean market can be formed through this because fairness is maintained on both sides given trading in a ship by which opening the maintenance record and the trouble history is applied equally to a buyer and a seller. Ships can be reduced a loss of time and cost in preventing similar problems and seeking solution that may appear in important equipments, through this maintenance record. Also, based on these materials, it comes to be available for analyzing a risk of ship and preventing and managing a risk, thereby being increased ability of maintenance and repair in a ship, resulting in being judged to likely contributing to ship safety and environmental-pollution prevention.