• The Korean Journal of Air & Space Law and Policy
• /
• v.20 no.1
• /
• pp.143-209
• /
• 2005

In 1994, the North Korea indicated their intention to open up airspace. The air route passing through from Daegue FIR to Pyungyang FIR has established in 1996. The air transport cooperation between South and North Korea seemed to be reinforced at the event of President Kim, Dae-Jung's visit to North Korea by passing through a temporarily established Yellow Sea Airway in the year of 2000. The nature characteristics of air transport burdening of many circumstantial situations, however, have kept cooperation between South and North Korea from being facilitated till now. Recently as the more exchange between North and South Korea, the more frequent opportunities to discuss economic cooperation, which in sequence increased political credibility has been increased. The rail, road, and port reconnecting has realized which have been regarded impossible. Furthermore, it is expected to transport personnel and goods through South-North direct connected routes in the near future This study shows several meanings of air transport cooperation between South and North Korea. It will be far beyond simply partial air route connecting in this region, it gives great significance to realize economic cooperation and Northeast hub through air transport industry sector. This will be an exit for air transport industry have suffered limits derived from North Korea troubles and difficulties in growing as Northeast air hub. Namely, South-North air connection denote its meaning in providing opportunities Korea to be Northeast Hub and advanced country having globally competitive air transport industry To develop strategy for air transport cooperation between South and North Korea. they were developed by SWOT analysis on the basis of circumstantial analysis. These strategy need to be commanded properly to the changes of surrounded circumstances. The study result show it is desirable to apply phasal strategies by using strengths, weaknesses, threats and opportunities factors underlying analysis of inner and outer circumstances to cooperate in air transport sector.

• Journal of the Korean Institute of Navigation
• /
• v.4 no.2
• /
• pp.45-79
• /
• 1980

The aim of this paper is to analyze the mechanics of price formation in the tramp shipping. For the purpose of this study, the main characteristics of tramp freight rates and the market is examined, and a brief examination of the nature ofthe costs of operation is given which are essential for the understanding of the functioning of shipping firms as well as for the understanding of developments in the tramp freight market. The demand and supply relationships in the market is also analysed in detail. Tramp shipping is an industry that has a market which functions under conditions that are not dissimilar to the theoretical model of perfect competition. However, it does notmean that tramp shipping market is a perfectly competitive market. It is apparent that this realworld competitive system has its imperfections, which means that the market for tramp shipping is near to being a perfectly competitive market on an internaitonal scale and it is freight are therefore subjext to the laws of supply and demand. In theory, the minimum freight rate in the short term is that at which the lowest cost vessels will lay-up in preference to operating, and is equal to the variable costs minus lay-up costs; and this would imply that in all times except those of full employment for ships there is a tendency for newer low-cost, and, probably, faster vessels to be driving the older high-cost vessels in the breaker's yards. In this case, shipowners may be reluctant to lay-up their ships becasue of obligations to crews, or because they would lose credibility with shippers or financiers, or simply because of lost prestige. Mainly, however, the decision is made on strictly economic grounds. When, for example, the total operating costs minus the likely freight earnings are greater than the cost of taking the ship out of service, maintaining it, and recommissioning it, then a ship may be considered for laying-up; shipowners will, in other words, run the ships at freight earnings below operating costs by as much as the cost of laying them up. As described above, the freight rates fixed on the tramp shipping market are subject to the laws of supply and demand. In other words, the basic properties of supply and demand are of significance so far as price or rate fluctuations in the tramp freight market are concerned. In connection with the same of the demand for tramp shipping services, the following points should be brone in mind: (a) That the magnitude of demand for sea transport of dry cargoes in general and for tramp shipping services in particular is increasing in the long run. (b) That owning to external factors, the demand for tramp shipping services is capable of varying sharphy at a given going of time. (c) The demad for the industry's services tends to be price inelastic in the short run. On the other hand the demand for the services offered by the individual shipping firm tends as a rule to be infinitely price elastic. In the meantime, the properties of the supply of the tramp shipping facilities are that it cannot expand or contract in the short run. Also, that in the long run there is a time-lag between entrepreneurs' decision to expand their fleets and the actual time of delivery of the new vessels. Thus, supply is inelastic and not capable of responding to demand and price changes at a given period of time. In conclusion, it can be safely stated that short-run changes in freight rates are a direct result of variations in the magnitude of demand for tramp shipping facilities, whilest the average level of freight rates is brought down to relatively low levels over prolonged periods of time.