• Journal of Navigation and Port Research
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• v.46 no.3
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• pp.289-296
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• 2022

The purpose of this study was to investigate the inter-correlation between crude oil prices and Dry Bulk Freight rates. Eco-friendly shipping fuels has being actively developed to reduce carbon emission. However, carbon neutrality will take longer than anticipated in terms of the present development process. Because of OVID-19 and the Russian invasion of Ukraine, crude oil price fluctuation has been exacerbated. So we must examine the impact on Dry Bulk Freight rates the oil prices have had, because oil prices play a major role in shipping fuels. By using the VAR (Vector Autoregressive) model with monthly data of crude oil prices (Brent, Dubai and WTI) and Dry Bulk Freight rates (BDI, BCI and (BP I) 2008.10~2022.02, the empirical analysis documents that the oil prices have an impact on Dry bulk Freight rates. From the analysis of the forecast error variance decomposition, WTI has the largest explanatory relationship with the BDI and Dubai ranks seoond, Brent ranks third. In conclusion, WTI and Dubai have the largest impact on the BDI, while there are some differences according to the ship-type.

• Journal of Korea Port Economic Association
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• v.40 no.2
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• pp.157-173
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• 2024

This study analyzed the connectivity of the dry bulk carrier market before and after COVID-19 to examine the impact of COVID-19 on the global shipping market. Using the Quantile Time Frequency Connectedness methodology, we analyzed the dynamic connectedness of major dry bulk indices: the Capesize Index (BCI), Supramax Index (BSI), Panamax Index (BPI), and Handysize Index (BHSI). The results are as follows. First, the total spillover connectedness of the dry bulk carrier market increased during the entire period and in the short term after the outbreak of COVID-19, while it slightly decreased in the long term. Second, the roles among the indices changed according to market conditions, with COVID-19 causing the BPI to change from a net receiver to a net transmitter in the short term and the BSI in the long term, affecting net spillover connectedness. Third, it was observed that long-term connectivity tended to increase more than short-term connectedness under extreme conditions. Fourth, the phenomenon of strengthened connectedness under extreme market conditions was confirmed. These results provide important insights into understanding short-term market shocks and long-term stability trends, demonstrating that the connectedness among dry bulk carrier markets strengthens in global crisis situations such as COVID-19. This provides a basis for assessing the resilience and vulnerability of the shipping market and offers useful information for investors and policymakers in crisis management and investment strategy formulation.

• 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.42 no.1
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• pp.57-66
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• 2018

Maritime industry is affected by outside factors significantly due to its derivative demand characteristics. However, the supply side can not react to these changes immediately and due to this uniqueness, maritime industry repeats the boom-bust cycle. Therefore the government itself needs to operate early warning system in order to monitor the market and notice the upcoming risks by setting up a system to prepare for the situations. In this research, signal approach is used to establish early warning system. Overall leading index is composed of crisis index that is based on BDI(Baltic Dry Index) and various leading indexes such as finance, economy, shipping and the others. As a result of computing overall leading index which is early warning system in maritime through signal approach, the index showed a high correlation coefficient with actual maritime risk index by difference of 4 months. Also, the result was highly accurate with overall leading index's QPS(Quadratic Probability Score) at 0.37.

• Journal of Ship and Ocean Technology
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• v.1 no.1
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• pp.57-72
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• 1997

The larger trends related to cracking in ocean going vessels (primarily tankers and bulk carriers) are reviewed on the basis of available data. The typical interrelated causes of such cracking are: high local stresses, extensive use of higher strength steels, inadequate treatment of dynamic loads, adverse operational factors (harsh weather, improper vessel handling), and controllable structural degradation (corrosion, wear, stevedore damage). Three consequences of cracking are then discussed: structural failure, pollution, and increased maintenance. The first two, while rare, are potentially of high consequence including loss of life. The types of solutions that can be employed to improve the durability of ships in the face of fatigue cracking are then presented. For existing vessels, these solutions range from repairs based on structural analysis or service experience, control of corrosion, and enhanced surveys. For new vessels, the use of advanced design procedures that specifically address dynamic loads and fatigue cracking is necessary. As the preferred solution to the problem of cracking in ships, this paper advocates prevention by explicit design by first principles.

• Journal of Korea Port Economic Association
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• v.38 no.3
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• pp.87-104
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• 2022

Considering the complex structure and high volatility in the shipping market, it is important to investigate the connectedness amongst influencing factors. This study explores the dynamic relationship between supply-demand factors and shipping freight indices. We choose Capesize and Panamax in the bulk carrier market and use quarterly data of GDP, world fleet, BCI, and BPI from 1999 to 2021. Applying the wavelet analysis and wavelet Granger causality test, the simultaneous examination of co-movement and causality between two factors and the shipping market in both the time and frequency domains is achieved. We find that co-movement and causality vary across time and frequencies, thereby existing dynamic relationships between variables. Second, compared to multiple coherencies using demand and supply factors together, partial coherencies indicate noticeable causalities. It implies that analyzing demand and supply factors separately is essential. Finally, shipping freight indices show a high correlation with the demand factor in a good market and with the supply factor in a bad market. Generally, GDP positively leads shipping freights in the recovery phase while the world fleet negatively leads shipping freights in the downturn. The research is meaningful in that the rarely-applied wavelet analysis is adopted in the shipping market and that it gives a reasonable ground to explain the role of supply and/or demand factors in different phases of the market cycle.

• Journal of the Society of Naval Architects of Korea
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• v.53 no.4
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• pp.336-342
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• 2016

H-CSR(Harmonized Common Structural Rules) integrating CSR-BC(Common Structural Rules for Bulk Carriers) and CSR-OT(Common Structural Rules for Double Hull Oil Tankers) came into effect in July of 2015, so that bulk carrier and double hull oil tanker should comply with this rules. So far, several studies for trend analysis of requirements of structure scantling based on H-CSR have been carried out briskly. However, those studies are rare to apply H-CSR in actual structural design of ships, especially bulk carriers. In this study, an automated system for compartment arrangement is used to search the design case that minimizes still water bending moment(S.W.B.M) in 38k bulk carrier designed by Far East Ship Design & Engineering Co. Ltd. Also, various structural design cases are considered by changing arrangement of structural members to reduce ship weight. The SeaTrust-Hullscan software developed by Korean Register is used to perform structural design of ships based on mother ship and proper design cases are selected by user. The DSA(Direct Strength Analysis) is performed to evaluate structural safety for the yielding and buckling analysis by using MSC Nastran software. The effect of weight reduction is verified by comparison of ship weight between mother ship and the selected design cases.

• Journal of the Korean Institute of Navigation
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• v.22 no.4
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• pp.15-19
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• 1998

This paper concerns a bulk or semibulk cargo ship scheduling problem with a single loading port. This type of ship scheduling problem is frequently needed in real world for carrying minerals or agricultural produce from a major single production zone to many destinations scattered over a large area of the world. The first optimization model for this problem was introduced by Ronen (1986) as a nonlinear mixed integer program. The model developed in this paper is an improvement of his model in the sense that nonlinearities and numerous unnecessary integer variables have been eliminated. By this improvement we could expect real world instances of moderate sizes to be solved optimal solutions by commercial integer programming software. Similarity between the ship scheduling model and the capacitated facility location model is also discussed.

• Journal of the Korean Society of Marine Environment & Safety
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• v.2 no.1
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• pp.143-143
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• 1996

Recent Class requirements and IMO recommendations concerning Hull Strength Monitoring (HSM) have prompted an increasing number of shipowner to adopt monitoring systems on bulk carriers and tanker. Such systems are designed to give warning when stress levels and the frequency and magnitude of ship motions approach levels which require corrective action. When fitted these systems provide enhanced operational safety and efficiency. This paper describes a development beyond the standard BMT HSM system through the integration of stress, motion and radar-based sea state monitoring with powerful, on-board, artificial intelligence (AI) tools. The latter utilises conceptual clustering techniques as an aid to pattern recognition in stress, fatigue. motion and sea state data clusters. This, in turn, provides additional operational guidance for ship's staff. Feedback from applications of the standard BMT HSM and extended HSM systems on board the British Steel Bulk Shipping fleet is described.

• Proceedings of the Korea Committee for Ocean Resources and Engineering Conference
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• 2004.05a
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• pp.73-78
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• 2004

For the preliminary stages of ship design it is necessary to develop a basic design, which specifies the main particulars of the vessel. based on the requirements given by the owner. An efficient design enables the shipyard to make a rough estimate of the construction costs and to put forward a favourable quote during the call for tenders. The parametric determination of the main particulars of the vessel involves the application of empirical formulae. These formulae have been created after detailed tests and research by maritime research institutions and researchers had been carried out. Here, the design of a medium sized Bulk Carrier (26000t dwt) with a service speed of 17 knots for carrying rice and rock phosphate has been illustrated. Medium sized Bulk Carriers (25,000t dwt - 50,000t dwt) are in steady demand among small shipping companies. They have a size advantage, in that port size restrictions do not affect their design tremendously. Nevertheless, structurally. they are one of the most difficult to build. During design, the rules of the maritime regulatory bodies were strictly adhered to.