2. The organization of the shipping market

• Defining the maritime market• Defining demand / customers• Defining the suppliers• Shipping= Παίκτες/agents: Shippers,

shipowners, brokers, shipbuilders, bankers, regulators.

Shipping is a way of life, not only business!

An overview below…

Product differentiation In shipping (how a cargo is shipped)

• Price (Demand is relatively price inelastic. As transport cost only 2.5%, has little or no impact on the cargo volume transported)

• Speed ($1mil. Inventory cost, with 10% int.rate, for 3-month period costs $25.000. If 1.5 month period, it worth paying 12.500 more freight…for a speeder ship…)

• Reliability (just in time!)• Security (the cost of loss/damage/piracy)--------------------------------------------------------------

The economic model of sea transport below

Economic model of sea transport

• Bulk (liquid/oil/chemicals/wine etc, Major/grain/coal/ironore/bauxite/pausphate, Minor/steel/cement/ salt/ wood/ etc)

• Liner (loose, containerized, palletized, pre-slung small items cargo, liquid, refrig., heavy)

• Specialized (ships for specific cargo types/vehicles forest, refrig. Gas, etc))

Differences in 1. Value2. Volume3. Number of transactions4. Commercial systems

Ship size and economies of scale