“Ocean Carriers” case Assume that Ocean Carriers uses a 9% discount rate. 1) Do you expect daily spot hire rates to increase or decrease next year? (5 points) 2) What factors drive daily hire rates? (5 points) 3) How would you characterize the long-term prospects of the capesize dry bulk industry? (10 points) 4) Should Ms Linn purchase the $39M capsize? Make 2 different assumptions. First, assume that Ocean Carriers is a US firm subject to 35% taxation. Second, assume that Ocean Carriers is located in Hong Kong, where owners of Hong Kong ships are not required to pay any tax on profits made overseas and are also exempted from paying any tax on profit made on cargo uplifted from Hong Kong. (75 points) 5) What …show more content…
Linn expected that Australian and Indian ore exports would begin in 2003, and that new supplies would significantly increase trading volumes. Demand for capesizes would likely increase with these higher trading volumes, possibly boosting prices. According to Exhibit 5, we can get the following data: | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | Iron ore vessel shipments | 375 | 397 | 385 | 424 | 420 | 410 | 440 | Growth rate | | 5.87% | -3.02% | 10.13% | -0.94% | -2.38% | 7.32% | Avg. spot rate | $16,851 | $20,149 | $11,730 | $14,794 | $10,105 | $9,427 | $22,575 | Growth rate | | 19.57% | -41.78% | 26.12% | -31.70% | -6.71% | 139.47% | Avg. 3-yr charter rate | $18,250 | $18,544 | $14,079 | $16,063 | $13,076 | $12,626 | $15,344 | Growth rate | | 1.61% | -24.08% | 14.09% | -18.60% | -3.44% | 21.53% | From the table above, we can find that worldwide iron ore vessel shipments and charter rates had been very strongly associated historically. Iron ore vessel shipments and daily hire rate changed in the same direction. Moreover, 3-yr charter rates changed much more than iron ore vessel shipments, while spot rates tended to fluctuate more widely than 3-yr charter rates. As mentioned above, Australian production in iron ore expected to be strong and Indian iron ore exports expected to take off in the next few years. I expect worldwide iron ore vessel shipments to
1. What was Chem-Med 's rate of sales growth in 2003? What is it forecasted to be in 2004, 2005, and 2006?
The film The Sea Inside shares the heart warming real life story of a man named Ramon Sampedro. At the young age of twenty-six he suffered an accident while diving into shallow waters of the ocean that left him a quadriplegic. Now at the age of fifty-four, Ramon must depend on his family to survive. His older brother Jose, Jose’s wife, Manuela and their son Javi do their best to take care of Ramon and make him feel loved. Although Ramon is extremely grateful to his family and friends for their help all these years, he has come to see his life as aggravating and unsatisfying. He wishes to die with the little dignity he has left in his life. However, Ramon’s family is dead set against the thought of assisted suicide and the
The purpose of this paper is to analyze the economic situation of the company Macedonian Shipping and give a recommendation whether the company should use the motor vessel Tashtego as a freight tender beween Dar-es-Salaam and Zanzibar in East Africa or as a tapioca ship between Balik Papan and Singapore in the East Indies.
15. How has the company’s stock been performing in the last 5 years? Steadily rising since 1/2009. Declining from 2007 – 2009 as expected due to the recession and the change in demand for construction.
Since scenario 1 has a negative NPV, we recommend Ocean Carriers to not invest if there is a 35% tax rate in the US. In scenario 2, where the ship is built in HK with a 0% tax rate, then we recommend that Ocean Carrier invest in the ship. This analysis shows that working the ship at a 35% tax rate will not yield a profit on the investment even 25 years into the future, given the increasing costs of survey preparation and the diminishing number of days that the ship is actually able to make money and be commissioned.
After settling the close debate as to where the American’s wished to build their canal and purchasing the area under the 1903 Hay-Herran treaty, the U.S. needed only permission to unearth the ground. Colombia wasn’t too fond of the idea and thus rejected all of America’s efforts. Negotiations with the country went quite poorly as well. Arthur Beaupré was chose to communicate with Colombia but negotiations continued to go poorly as, “he was frequently blunt, even dictatorial, in his
Q3. Do you agree with Mr. Clarkson’s estimation of the company loan requirements? How much will he need to finance the expected expansion in sales to $ 5.5 Mil. In 1996 and to take all trade discounts?
Relationship between Charter rates and Ship Price: With one point increase in the Capesize ship index, there is a slight increase in the price of the ship by $0.007 mln. The Capesize ships took like a year to build, and are good for 25 years, after which they are demolished and sold for scrap. The economics of this “ship breaking” differed by ship size and type category. So higher this index, higher is the price of the ship.
Answer 3. Plexet will adopt the just in time approach to production to improve the business
My favorite scholarly pursuit to date is in a category of its own, combining most of the examples in the given prompt. It began roughly three years ago when I first read about the Spanish treasure fleets of the early 1700s in one of my history books. The subject was just barely brushed upon, but it was enough to spark my curiosity on the topic and I decided to look up more information. After reading several books and individual articles, I focused my intended research on a single fleet: the 1715 treasure fleet. Consisting of eleven ships, the 1715 fleet had been laden with gold, fine china, and other valuables. Spain was in desperate need of funds due to the War of Succession, so the large treasure fleet was not an uncommon sight.
1. If Williams-Sonoma continues with its’ present strategies and objectives, where will it be in 5 years?
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Falvon can supplies both magnetite and hematite iron ore grades.High Grade iron ore ranging from 63.5% + upto 71% possible. We can supply iron ore Fe 56-58% also.We can supply iron ore from Australia, Brazil, Chile, Iran, India, and Mexico. We are happy to work with iron ore exporters, traders and brokers.
Yet its economic success in recent years has been based on the mining sector (13.5 percent of GDP) as foreigners paid more each year for key commodity exports, triggering huge investment in resources infrastructure (References).
recent years shows that the value of natural resource exports accounts for more than half