Ocean Carriers Inc. was approached in January of 2001 with a contract proposal for the leasing of one of their ships for a term of 3 years beginning in 2003. Ocean Carriers currently has no ship to accommodate the customer. To commission the construction of a new vessel would take 2 years from start to completion. The average rate in the spot market is $22,000 per day. Ocean Carriers deployed a younger fleet than average carriers and generally earned a 15% premium over the average daily rate placing them in position to capitalize in strong economies. However, the industry is volatile and suseptable to extremes both low and high. Many ship owners sought to sign contracts with time charters in order to shield themselves from the swings …show more content…
A. Revenues Calculations of expected annual revenue for Ocean Carriers: = Expected daily hire rate * (365 days- scheduled days for maintenance) Age of Ship | Calendar year | Expected Daily Hire Rate (from Exhibit 6) | Minus scheduled days for maintenance (from p.1) | Total Annual Sales | 1 | 2003 | 20,000 | 8 | $7,140,000.00 | 2 | 2004 | 20,200 | 8 | $7,211,400.00 | 3 | 2005 | 20,400 | 8 | $7,282,800.00 | 4 | 2006 | 18,714 | 8 | $6,680,898.00 | 5 | 2007 | 17,283 | 8 | $6,170,031.00 | 6 | 2008 | 17,481 | 12 | $6,170,793.00 | 7 | 2009 | 17,682 | 12 | $6,241,746.00 | 8 | 2010 | 17,886 | 12 | $6,313,758.00 | 9 | 2011 | 18,092 | 12 | $6,386,476.00 | 10 | 2012 | 17,428 | 12 | $6,152,084.00 | 11 | 2013 | 17,628 | 16 | $6,152,172.00 | 12 | 2014 | 17,831 | 16 | $6,223,019.00 | 13 | 2015 | 18,036 | 16 | $6,294,564.00 | 14 | 2016 | 18,243 | 16 | $6,366,807.00 | 15 | 2017 | 14,762 | 16 | $5,151,938.00 | 16 | 2018 | 14,932 | 16 | $5,211,268.00 | 17 | 2019 | 15,104 | 16 | $5,271,296.00 | 18 | 2020 | 15,278 | 16 | $5,332,022.00 | 19 | 2021 | 15,454 | 16 | $5,393,446.00 | 20 | 2022 | 14,654 | 16 | $5,114,246.00 | 21 | 2023 | 14,823 | 16 | $5,173,227.00 | 22 | 2024 | 14,993 | 16 | $5,232,557.00 | 23 | 2025 | 15,166 | 16 | $5,292,934.00 | 24 | 2026 | 15,341 | 16 | $5,354,009.00 | 25 | 2027 | 13,448 | 16 | $4,693,352.00 | B. Operating Expenses: =Expected rate of inflation (4,000) x (1+0.04)N Year (N) | Expected rate of
There is a bright future for the sport boat industry; the market as a whole is expected to grow in the near future. In 2006 the sport boat market had a total value of $6.9 billion; that value has climbed by 9.3% each year, and that trend is expected to continue for the next 3 years. This means that the sport boat market will be worth $10.1 billion by 2014. This industry rebound is dependent upon the recovery of the market and a general change in attitude of banks to lend more money for boat purchases. In addition to this overall market growth and economic recovery, we can expect sport boat sales to increase due to an increase in the number of boat purchasers. As the baby-boomers reach retirement age, the number of boats sold can be expected to increase causing the overall market to increase at a rate greater than the expected 9.3%. With this explosion in the sport boat market, positive economic activity, and the increased willingness of banks to grant loans, it is expected that the sport boat market will expand beyond all future expectations.4
Ocean Carriers is evaluating a proposed lease for a ship over three years starting in 2003. Currently, Ocean Carriers does not have any ships that are available to meet this customer demand. This report will assist VP of Finance Mary Lynn to make a decision on whether or not to commission a new carrier and how long to hold on to this asset.
For anyone interested in a degree from a credited college — who have a passion for the entertainment industry, film, local media, audio and video production — you need look no further than Full Sail University. Full Sail is unique in that it focuses on training those with a passion for a creative career in the entertainment and media industry.
Lastly, an alternative that can be taken is to build relationships with various large companies with employees who make an income in the target range and make offers to company executives. This method would not downplay the company image because Cunard would be communicating directly with high-income executives and furthermore will not be making any public sales or advertisements. This method would create new potential customers who are directly in the target market of choice using the method of relationship building. This may also result in additional customer retention. This method can be used for both the four and five star ships. In order to attract the target market of the five star ships, Cunard can make an arrangement with a company to offer a deal with their luxury ships as part of a retirement plan.
In North America many of the new colonies participated in free shipping trading with counties all over the world with little interference by Britain. However after the French and Indian which ended in 1763 the British wanted to recover the money they lost to supplying the war on multiple continents using tariffs and restrictions on colonial trade they did see an increase in revenue during that period. They did so by implementing a series of tariffs such as sugar acts, stamp acts, and the navigation acts limiting colonists on foreign trade. Colonists would only take so much of Britain’s oppression. Looking at these intolerable acts as limits to their freedoms without proper representation or say in parliament, colonists took action. On
Where were you on September 11, 2001? In order for senior leaders to pave the way for their juniors, they need to have a full understanding of historical data, mission capabilities and what that means to be a service member. This paper discusses the history, mission, and the symbolism of the USS NEW YORK.
USS Indianapolis (CL/CA-35) was a Portland-class heavy cruiser of the United States Navy, named for the city of Indianapolis, Indiana. The vessel served as the flagship for the commander of Scouting Force 1 for eight pre-war years, then as flagship for Admiral Raymond Spruance, in 1943 and 1944, while he commanded the Fifth Fleet in battles across the Central Pacific in World War II.
Ships were known as battleships during WW1. They were covered in extensive armor and large-caliber guns attached to their hulls dealt substantial damage.
(NSY) had been providing parts and services to the Mega-Yacht Industry since receiving their initial seed capital in 2000. The Mega-Yacht industry provided an attractive opportunity for NSY. Although the industry was small by comparison, serving only 10,000 vessels, it generated in excess of $1 billion in economic activity annually, divvied amongst the new build, and maintenance, refit and repair business sectors (Mark & Mitchell, 2003, p. 48). The industry’s supporting cast included captains and crews, owners, management companies, procurement agents, yacht builders and repair entities, brokers, and local husbanding agents. Although unknown to the firm at its inception, consultants in 2002 forecasted the mega-yacht industry would see annual growth of 6%, with the potential for even better numbers in the short-term (Mark & Mitchell, 2003, p. 48).
The USS Nautilus was commissioned on September 30, 1954. This submarine set a travel record in the record books by being the first ever nuclear submarine. The USS Nautilus was commissioned by the U.S. Navy and constructed under the direction of U.S. Navy Captain Hyman G.Rickover, a Russian-born engineer who joined the U.S. atomic program in 1946 and 1947. In 1947, Hyman. Rickover was put incharge of the Navy’s nuclear-propulsion program and began working on the atomic submarine. Even though wasn’t a fanatic to his detractors, he still succeeded in creating the world’s first nuclear submarine years ahead of schedule.The USS Nautilus was much larger than the diesel-electric submarine that preceded it, the Nautilus had stretched 319 feet and displaced
The first commissioned aircraft carrier, the USS Langley, made its debut in 1922 (Petty, The Carriers). From then after, navies across the world continued to improve and add these platforms to their fleets. With 19 aircraft carriers from nine countries steaming across the world, carriers are a prominent representation of a county’s naval power (Mizokami). The United States Navy (USN) alone boasts 10 Nimitz Class supercarriers propelled by twin nuclear reactors, allowing each carrier to steam across the world’s oceans for decades without refueling (Petty, Aircraft). By law, the USN is required to maintain at least 11 carriers; while the US only has 10 carriers in service, an eleventh and entirely new class, the Gerald R. Ford, is nearing commission
During the first World War, also known as the Great War, several revolutionary weapons were introduced. Among these are such despicable devices such as the flamethrower and mustard gas. However, one invention staked its claim in history from the very beginning: the U-boat. Employed early on by the Germans, U-boats, short for Unterseeboot (literally translated under-sea boat), stalked their prey from beneath the surface, devastating the Allied fleets. Unfortunately, these vessels and their crews were mistake prone, often shooting neutral boats due to the lack of visibility through periscopes. Inevitably, a few of these mistakes helped lead to the United States involvement in the Great War. Although, the U-boats
demand for across the global economy, the size of ship and the age of vessel, the number of current ships in
Shipping being such a large industry with over 1.6 million seafarers globally, consisting of both officers and ratings from countries such as China, Philippines, Russia, Ukraine and India supplying the largest number of seafarers to the industry. The number of seafarers have been predicted to grow in the future with an increase in demand for both officer as well as rating.
We expect the daily hire rates to increase from 2001 to 2002, but then to decrease overall in the long term based on the assessment of the consulting firm. The consulting firm based their forecast on higher demand in iron ore shipments. They claim demand in iron ore shipments has historically shown a strong correlation with charter rates, and we believe this makes sense. Vessel size, distance of route, and demand for ore/coal are drivers of daily rates.