Shipping, International Trade and Finance

 

1. Knowledge, understanding, explaining and interpreting

The Shipping Finance and Investment Strategy module combines the theoretical and practical aspects of Investment Strategy techniques with applications in the area of shipping. It explains the different types of investment associated with shipping ownership and operation as well as methods for measuring and quantifying such investments.

 

It also covers investment strategy techniques and compares their effectiveness in eliminating risk. A variety of real life examples are used to demonstrate how investment techniques may be employed to control risk in the industry.

 

2. Explanation and interpretation

Shipping Finance and Investment focuses on the evaluation and selection of alternative shipping related investment decisions under uncertainty and the different sources of investment financing available to shipping organizations. It builds upon some of the core concepts introduced in Corporate Finance, but focuses on the shipping industry. The module deals with the process and types of traditional ship mortgage finance, as well as the alternative capital market sources, such as public issuance of equity and debt, private forms of equity and debt, ship leasing and KG/KS financing. It also aims to provide a rigorous grounding on the long-term financial decisions that shipping corporations make the tools and analysis used to make these decisions and the factors that affect them.

 

3. Instrumental application

- Lectures will be realised into an interactive manner;

- Tutorials will be focused on practice and on students ‘evaluation;

- A great importance will have the research studies and essays made by the students.

 

4. The topics

 

Spherical Approach; Structural Changes; Cyclical Changes.

1) The shipping investment environment.

- Shipping Financial Market and the Economy

- Investment Process

- Shipping markets are competitive

- The players

2) How Shipping Securities are traded

- U.S. Security Market

- Market structure in other countries

- Trading Cost

- Regulation of Securities Markets

- Public and Private Equity in Shipping

- Comparison of Risks-Returns across Listed Shipping Companies,

3) Fundamentals of Bank Shipping Finance: Credit Proposals and Loan Documentation;

Syndication, Collateral Securities.

- Bank Shipping Loans

- Bank Syndication

- Bank Credit Analysis

- Issuance of a Shipping Loan

4) Capital Markets as a Source for Shipping Finance: Equity Market & High Yield Market. - Shipping Bonds

- High Yield Shipping Junk Bonds and Credit Spreads

 

5) Valuation of Shipping Companies and their Shares.

- KG, KS and Islamic Finance

- Capital Budgeting in Shipping

6) Cost of Capital and Capital Structure in Shipping

7) Ship Leasing

8) Behavioural Finance and Technical Analysis

9) Investment Appraisal in Shipping

10)  International Diversification

-Risk factors in international investing

- Assessing the potential of International Diversification

- International Investing and performance attribution

11) Revision.

 

 

Commodity Trade & Chartering Policy

 

1. Knowledge, understanding, explaining and interpreting

 

Learning Objectives

As a result of taking this course, students should be able to:

1. Recognize the characteristics that characterise the major shipping activities.

2. Understand meanings such as: types of ships, types of ships employed in dry cargo trades including Capesize, Panamax and Handy size bulk carriers, General Purpose (Tramps), Container, Ro/Ro, Ore/Bulk/Oil and Ore/Oil carriers; Short sea and coastal traders.

3. Understand the basic dimensions, design and construction details including decks, holds, hatches, derricks, winches, cranes and specialised cargo handling gear.

4.Thoroughly understand the terminology of measuring ships including dimensions, actual tonnages – deadweight (dwat &dwcc), displacement (total & light); pseudo tonnages – NT & GT; capacities – bale & grain cubic, TEUs.

5. Know and understand what information is contained in Capacity, General Arrangement and stowage plans.

6. Identify the Understand the nature and characteristics, main places of origin and appropriate trade routes of other important cargoes.

7. Understand the role of the Broker and its relationship to the principals as an agent. (Owners broker, charterers agent, exclusive broker, competitive broker, intermediate broker)

8. Understand the basic format and purpose and content of those main clauses common to all Charter Party forms

9. Understand the basic format and purpose and content of those main clauses common to all Charter Party forms

 

Development of Skills

As a result of taking this course, students should be able to:

  1. Understand the strategies and the methods for the management of chartering services 2.  Know how to acquire the resources to accredit and evaluate the services logic within organizations.
  2. Learn to continually evaluate the implementation of such programs and

Become committed leaders and lead the processes of chartering and brokering skills development.

 

3. Instrumental application

 -lectures will be realised into an  interactive manner;

- seminars will be focused on practice and on students ‘evaluation;

- a great importance will have the research studies and essays made by the students.

 

4. Attitudinal

- implementing of positive and responsible approach to the regional science;

- optimal and creative valorisation of the student’s potential under the scientific activities;

- understanding of the regional disparities ‘dynamic and the instruments to decrease them

 

THE MAJOR SHIPPING ACTIVITIES

  SHIP OWNERS,  CHARTERERS, BROKERS,   BANKS,  INSURANCE,  SHIPYARDS

A SURVEY OF EXISTING CHARTERING METHODS AND TOOLS

 FORECASTING, FREIGHT RATE AS FUNCTION OF SUPPLY AND DEMAND

 CHARTER MARKET DECISIONS UNDER UNCERTAINTY 

 INVESTMENT AND PORTFOLIO ANALYSIS 

ACQUISITION STRATEGY - NEW BUILDINGS AND SECOND HAND

THE OPTIMUM SPEED OF SHIPS

 WEATHER ROUTING 

OPTIMAL LOADING PROBLEMS, MAINTENANCE AND REPLACEMENT,

ROUTING, SCHEDULING, AND VESSEL POSITIONING

 

SHIPS- TYPES OF SHIPS

 

CARGOES AND TRADE ROUTES

 

FREIGHT MARKETS

 

CONTRACTS

 

BILL OF LADING

CHARTERING MARKET PRACTICE

 

FINANCIAL ELEMENTS OF CHARTER PARTIES

 

LAYTIME

 

VOYAGE CALCULATIONS

 

Marine Insurance and Claims

 

1. Knowledge, understanding, explaining and interpreting

The Marine Insurance course will provide an introduction to the topic and the market in which it operates; it will then go on to look at the actual insurable interest. It then examines the key issues surrounding pre-contractual non-disclosure as well as warranties, exceptions & implied terms. It also examines claims, both fraudulent and late (including post-contractual and those in good faith).  The course covers the issues surrounding causation & loss. In respect of insurance cover, both perils of the sea and the insurance clauses are discussed along with standard exceptions, wilful misconduct and proof. The module also deals with third party Issues (such as Subrogation and the1930 Act) and reform of the 1906 Act (including Law Commission proposals in development).

 

2. Explanation and interpretation

This course provides a critical and comprehensive study of the law of marine insurance. It explores the relationship and interaction between the Marine Insurance Act 1906, the common law and the terms of the Institute Clauses. It examines three main areas: the general principles of a contract of marine insurance; the standard insured perils, and the types of losses recoverable under a marine policy of insurance. The marine insurance is a subject which is constantly growing and in recent times a few surprises have been sprung upon the market by judges offering their interpretations of the law. Full coverage is given to recent developments in the law and to well established principles which have engendered controversies and inconsistencies.

 

3. Instrumental application

- lectures will be realised into an  interactive manner;

- seminars will be focused on practice and on students ‘evaluation;

- a great importance will have the research studies and essays made by the students.

 

4. Attitudinal

- implementing of positive and responsible approach to the Marine Environmental issues

- optimal and creative valorisation of the student’s potential under the scientific activities

 

Course Themes

 

- Introduction to Marine Claims

- Principles of Marine Insurance Law

- Special Categories of Marine Insurance Cover

- P&I Clubs and Mutual Insurance

- Marine Reinsurance

-  Marine Claims: The Wet & Dry  Side

-Management of Claims and Disputes

- Marine Surveying Insurance

- The Ship Operator’s Insurances

 

Lecture 1. Introduction to Marine Insurance 

• Introduction to marine insurance

- Risk management and insurance

- The markets

- P&I clubs

- The role of brokers

• The Marine Insurance Act 1906 and the IUA/ ILU Clauses

• The marine insurance contract

• Main principles of marine insurance

- Recent developments

• Risks insured and exceptions

• Losses

- Property and liability insurance

- The classification of losses

• Particular average

- Measure of indemnity

- Salvage

- Sue and labour

- Subrogation

• General average

- Calculation of contribution

- Shipowners’ lien on cargo and security

- Liability of insurers

• Hull and cargo insurance

 

 

Lecture 2. Principles of Marine Insurance Law

Introducing the essential features and peculiarities of the law of marine insurance, with particular emphasis on the Marine Insurance Act 1906 as well as an introduction into carriage of goods by sea.

It provide a foundation for further in-depth studies of marine insurance which will be provided in later modules.

• Principles of the law and the Marine Insurance Act

• Formation of the contract

• Duty of utmost good faith

• Warranties

• The requirement of insurable interest

• Risks covered

• Salvage and general average

• The duty of assured clause

• Causation

• Types of losses and their indemnification

• The making of a claim

 

Lecture 3. Special Categories of Marine Insurance Cover

A broad overview of all main categories of insurance contracts in the maritime field is provided in this module. The shipping boom of the last decade caused concerns over the rising trend in insurance claims and now, but for different reasons, the concern is that the financial crisis will also have adverse effects on marine insurance. The module will deal with the basic insurance cover for the maritime property of the ship owner and cargo owner as well as for the protection against other economic risks, such as loss of earnings or loss of the vessel as security for financing purposes. There will be comprehensive explanations of the perils insured against, including collision liabilities, which are, by tradition, covered under the vessel’s Hull & Machinery insurance. Other (third party) liabilities will be covered in a subsequent module, but a brief introduction to Protection & Indemnity Clubs will be provided here.

• Hull & Machinery insurance

- Time covers

- Voyage covers

• Cargo insurance

- A, B, and C clauses (1983 and 2009 versions)

- Cargo insurance and international sales contracts

• War and strikes insurance

• Freight insurance

• Mortgagees interest insurance

• Builders’ risk insurance

• Introduction to third party liability insurance and P&I Clubs

 

 

Lecture 4. P&I Clubs and Mutual Insurance

 

An overview and detailed introduction into the world of mutual liability insurance as provided by P&I Clubs. The system of mutual ‘Clubs’ has existed for nearly 300 years - initially with the Hull Clubs and, for the last 150 years, the Protection and Indemnity Clubs. This method of providing liability insurance to the ship operators continues to dominate the market with over 90% of the world’s deep sea ships entered in one of 13 P&I Clubs of the International Group. The module will explain how the P&I Clubs came into existence and why they continue, fundamentally, to operate in very much the same way and provide similar cover as in those early days. The concept of mutuality is key to the structure, success and functioning of the Club system and this concept will be studied in some detail to understand the foundations of the Clubs and how the system works in practice. A section of the module will also explore how P&I underwriting is structured and how the mutual system links into and relies upon commercial market cover by way of reinsurance facilities. The core of the module will be an examination of the scope of liability cover provided by the Clubs, linking the cover provided with the liability regimes for the various categories.

• Concept of mutual insurance

• History, organisation, management and role of P&I Clubs

• Relationship between a Club and its members

• Legal status of the Rule Book

• Categories of cover provided by Clubs

• Specialist Clubs and special covers

• Relationship between Club and market covers

• Reinsurance

 

 

Lecture 5. Marine Reinsurance

 

Insurance is a way of transferring the economic consequences of a risk to another party, the insurer. Insurers in their turn further transfer and spread the risk to other insurers by reinsurance. In the current economic climate the relationship between primary insurance and reinsurance will be more important than ever for all involved. The specialised area of reinsurance will be comprehensively covered in this module.

• Nature and purpose of reinsurance

• Reinsurance methods in practice

• Different categories of reinsurance contracts

- Facultative and treaty

• Reinsurance intermediaries

• Closing reinsurances

• Relationships between primary and reinsurance contracts

• Relationship between assured/reassured/ reinsurer

• Incorporation of terms from the direct policy

 

 

 

 

Lecture 6, 7 & 8. Claims

The more practical procedures and implications related to filing a claim under a marine insurance policy are described. Claims handling is an issue for both the insured and the insurer regardless of whether the insurance relates to hull or machinery interests, cargo or shipowners’ liability.

• Damage and casualty reporting

• Notice of loss to insurers

• Sue and labour

• Surveys

• Collecting evidence

• Salvage

• Repair

• Recoveries

• The role of average adjusters

- Average agents

- Surveyors

- Classification societies

- Brokers

• Loss prevention

 

Marine Claims: The Wet Side

• Collision

- Claims that can arise

- Forum shopping

- Jurisdiction of the English courts

- Obtaining evidence

- Liability

- Apportionment of liability

- Quantum of claims

• Salvage

- Historical overview

- Rights at common law

- Salvage Convention 1989

- Lloyd’s Open Form 2000 (LOC)

- The SCOPIC clause

• Pollution

- The CLC Convention

- The Fund Convention

- The Supplementary Fund

- The HNS Convention

- The Bunker Convention

 

Marine Claims: The Dry Side

• Cargo claims, disputes, defences and Rotterdam Rules

- Where to find carriers’ obligations

- Who is the carrier

- Who can sue the carrier

- Carriage obligations

- Due diligence and unseaworthiness

- Delivery of cargo without production of a Bill of Lading

- Defences, time limits and limitations

- Dangerous cargoes

• Charterparty disputes including

- Freight

- Demurrage

- Hire

- Performance

- Shipbrokers’ responsibilities

- Commission

• Bunker disputes

- Who can sue who

- Retention of title

- Quantity

- Quality

- MARPOL Annex VI

• Crew claims

- Personal injury

- Medical expenses

- Stowaways

• Fines and penalties

- Customs infringements

- Breaches of ISM, SOLAS, MARPOL, ISPS and other laws and regulations

- Risk of forfeiture or confiscation of ship or cargo

 

Lecture 9. Management of Claims and Disputes

Part One

• Early stages of a potential claim

- Appointment of surveyors

- Appointment of local representatives and advisors

- Arrest, provision of security and obtaining payment

- Protection, salvage and disposal of ships, cargoes and other assets

- The role of insurers

- Managing the media

Part Two

• Later stages of a claim

- Preparation

- Presentation

- Insurance

- Subrogation

- Response and defence

- Counterclaim

- Chains of liability

- Negotiation

- Consolidation

- Litigation

- Arbitration

- Mediation

- Costs

- Settlement

 

Lecture 10. Marine Surveying Insurance

• Introduction

• Marine insurance law

• Interaction of marine policies

• Cargo - carriage of goods by sea

• Hull and machinery

• Other policies

• P&I

- Scope of cover

- The ‘pay to be paid’ rule

- People claims (personal injury)

- Collisions and salvage

- Fixed and floating objects (FFO)

- Towage and pilotage

- General average

- Pollution

• Limitation and forum shopping

• Ship inspection regimes

• ISM code/evidence

• Dispute resolution

• Summary and future developments

 

 

 

Lecture 11. The Ship Operator’s Insurances

• Ship operator’s insurance requirements

• Marine insurance market

• Marine Insurance Act 1906

• Hull and machinery insurance

• Protection and indemnity insurance

• Collisions

• General average and salvage

• Damage to third party property

• Pollution

• Cargo loss and damage

• Personal injuries and illness

• Stowaways

• Fines

• Provision of security

• Freight demurrage and defence insurance

• War risks insurance

• Post-incident investigation

 

 

Maritime Environmental Protection and Regional Sustainable Development

 

1. Knowledge, understanding, explaining and interpreting

This course examines methods for managing and treating pollution of the marine environment and the various sources of pollution. Sources of pollution from road infiltration of pollutants into the sea and biogeochemical processes will be examined, and also sources of pollution from shipping. The major International conventions (IMDG-MARROL, Code ISM / ISO) in regards to combat marine pollution from shipping will be thoroughly examined. Moreover, the treatment and waste management of marine and atmospheric pollution from port activities will be presented. An estimation of the environmental impact will be made and the environmental management of port activities will be presented. This module also involves related field work in environmental management at the ports of Piraeus, Rafina and Poros.

 

2. Explanation and interpretation

This course specifies the knowledge acquired in previous courses and aims to expand the knowledge of students interested in the environmental impact of shipping operations. The best selections in terms of structure and organization are presented based on the environmental impact in the context of contemporary views on sustainable development. In this course the "vessel" and "port" are treated as one unit, bringing a holistic approach to managing the environmental impact of shipping.

This course will offer analysis on Implementing Economics of quality and safety in shipping and on the effect of external economies of scale on sustainable development. Also, it will provide application of  Environment Regulatory Economics and further application to real scenarios that involve the above mentioned approaches.

3. Instrumental application

 

- lectures will be realised into an  interactive manner;

- seminars will be focused on practice and on students ‘evaluation;

- a great importance will have the research studies and essays made by the students.

- case studies to be provided in order to illustrate how the management strategy and

planning tools can be applied within practical contexts

 

4. Attitudinal

- implementing of positive and responsible approach to the Marine Environmental issues

- optimal and creative valorisation of the student’s potential under the scientific activities

Course Themes

- Introduction to Maritime Environmental Management

- Environmental Impacts Associated with Maritime Operations

- Risk and Precaution in Maritime Environmental Management

- Maritime Environmental Governance and Enforcement

-  Planning Tools with Maritime Applications

- Measuring and Paying for Maritime Environmental Management

 

 

Shipping Markets' Analysis & Policy

 

1. Knowledge, understanding, explaining and interpreting

In this course students will learn the organization and administration of maritime operations and be aware of the complexities faced in an international market. This will be achieved by introducing participants to the functions and departments of the shipping companies, their structure and employed human resources. The course highlights fundamental concepts of Management and presents real cases from the shipping industry.

2. Explanation and interpretation

At the end of the course the students should be able to:

  • Analyze ways of organization and management of shipping companies
  • Know the characteristics of shipping companies
  • Identify the basics of shipping operations
  • Be aware of concepts such as functional deployment of shipping operations, human resources practices in shipping and finally safety and quality issues.

3. Instrumental application

 -lectures will be realised into an  interactive manner;

- seminars will be focused on practice and on students ‘evaluation;

- a great importance will have the research studies and essays made by the students.

 

4. Attitudinal

- implementing of positive and responsible approach to Shipping Markets' Analysis & Policy;

- optimal and creative valorisation of the student’s potential under the scientific activities of the discipline;

 

Course Themes

Introduction to Shipping Markets' Analysis & Policy

a. The globalize nature of markets

b. Shipping and derivative demand

c. Owners, ship owners and ship managers

d. Ship types

e. Registration and Classification

2. The operations of a shipping company

a. Structure of ship owning and Management Organizations

b. The various departments within

c. Operations and Technical

d. Chartering and Commercial

e. Insurance and Risk management

f. Hull and Machinery Insurance

g. P and I Clubs

3. The organization of a shipping company

a. The importance of the organization

b. The systemic nature of organizations

c. Organizational structure

d. Structural dimensions of organizational structure

4. Factors affecting organizational structure

a. Technology level - Expertise fleet

b. The environmental factor operating

c. The agent strategy

d. The organizational culture

5. Segmentation of shipping companies

a. Segmentation by function

b. Segmentation by operation

c. Spoken organizational form

d. The use of task forces

e. Geographical segmentation

f. Modular or network segmentation

6. Human resources management in maritime operations

a. Strategic human resource management (SDAD)

b. The operation of IHL

7. HRM ship

a. The crewing department of a shipping company

b. Crew management and competitive advantage

c. Applying HRM techniques in shipping

c. Global Labor market, multiculturalism and IHL ship

8. Safety in shipping operations

a. Maritime industry, quality and safety

b. The ISM Code. Approaches to implementing the ISM Code

c. ISM audit and objectives

d. The ISPS Code

9. Outsourcing functions and activities of shipping companies

a. The outsourcing as a strategic option

b. Advantages and disadvantages of delegation to independent managers

c. The independent ship management companies

10. Corporate social responsibility and management of shipping companies

a. Corporate Social Responsibility (CSR)

b. CSR practices in the shipping industry

Transportation Economics

1. Introduce Analytic models

- describe the underlying principles of transportation economics through analytic models;

- implement Transport economics elements in real life cases;

- understand the policy framework that EU has adopted;

- study of the impact of the transport efficiencies in modern Businesses.

 

2. Explanation and interpretation

- understand and use analytic models  

- identify transportation and logistics problems

- identify solutions that increase transport and logistics efficiency

- forecast demand and prepare capacity

 

3. Instrumental application

 -lectures will be realised into an  interactive manner;

- seminars will be focused on practice and on students’ practical needs and experiences;

- essays will be developed and presented by students.

 

4. Attitudinal

- selecting and implementing the right mix of transportation modes and means;
- optimal and creative valorisation of the student’s potential under the scientific activities;

- understanding of the pitfalls in different transport systems stemmed from geographic, political, and business disparities.

 

Course Themes

- Fundamentals of Transport Economics;

- Analysis of the EU Transport policies;

- International transportation systems.

- Modern requirements of companies and transportation strategies;

- Operational strategies;

- Selection of transportation means, modes and routes;

- Intermodal transport

- Pricing, Cost and Production Theory

- Cost and Productivity Efficiency Measurement

- User Costs: Waiting Time, Boarding and Alighting Time, Capacity Constraints, Route Structure, Vehicle Size

- Applications of the EU White Papers on modal selection

- Freight rate formation

- Short Sea Shipping, Road Transport and Rail Transport

- Ports as transportation and intermodal  nodes

- Advanced ITS technologies

- Transport flows in the Black Sea, Danube and Mediterranean

Port Economics & Management

 

1. Knowledge, understanding, explaining and interpreting

The Port Industry that satisfies the demand for “port services”, is not always organised in the same way. The recognition, distinction and analysis of the existing organisational models of Ports (once the term “port” has been defined) is the main subject of this course. In this effort, it is prerequisite to familiarise with the spectrum and the characteristics of the “port product”, so that we can further examine the services offered by a port. This is a part of the ongoing international dialogue over the role of the public and private sector in the port production and the peculiarities of the “Port Product”.

2. Explanation and interpretation

The course follows the emergence and development of Port Management, and its evolution prospects within an international environment and the changing trends in trade and transportation. This knowledge assists in a clearer understanding of the port selection criteria. In this sense, it is prerequisite to familiarise with the spectrum and the characteristics of the “port product”, so that we can further examine the services offered by a port. The recognition, distinction and analysis of the existing organisational models of Ports are examined, and case studies are selected to examine the relationships developed between ports, ships, cargoes and port types. The reality of these contemporary models is directly related to the evolution of the theoretical quests of organisational theory regarding the transition from fordism to total quality management. Highlighting the organisational problems of contemporary ports is also at the hurt of this discussion, and becomes even more important within a framework that clears the economic liaisons between, small, medium size and large Port Enterprises, as well as the distinction between different specialised cargo terminals.  

 

3. Instrumental application

 -lectures will be realised into an  interactive manner;

- seminars will be focused on practice and on students ‘evaluation;

- a great importance will have the research studies and essays made by the students.

 

4. Attitudinal

- implementing of positive and responsible approach to ports economics and management;

- optimal and creative valorisation of the student’s potential under the scientific activities of the discipline;

 

Course Themes

  • Port companies – Introductory analysis
  • Port business environment analysis
  • Port Planning
  • Decision making
  • Port Operations analysis
  • Port Organization
  • Port Leadership
  • Port Organizational culture
  • Departmentalization
  • Port companies departments
  • Port Quality and environmental management
  • Outsourcing in Ports
  • Port CSR - Corporate social responsibility
  • Port Human resource management