Investment strategies in market uncertainty

The nature of the global economy is one of dynamic change. Shipping is a service industry with its demand related to changes in international trade levels and patterns. As a consequence shipping is subject to sometimes unpredictable swings in demand so that the operator is required to make strategic planning decisions while navigating through boom or bust environments. While boom economies generate rising freight rates which are welcomed and encourage investment, ship operators may also have to face falling freight demand and declining freight rates that may have significant impact on profitability, often falling to uneconomic levels for extended periods. In such a period of uncertainty and declining profitability management will make operational decisions to reduce costs. However, shipping lines operate in a market environment so any decisions made to rationalize the trade may have significant long-term competitive implications. For example, traditional micro economic theory might suggest that the prudent strategy to adopt would be to close down the operation and reopen when the market conditions improve. In a world of certainty or when costs of taking this action are zero, this would be a valid strategy. However, because of fear of competitors taking up a line's market share if the shipping company exits, even temporarily, this strategy cannot be valued simply in terms of shut-down and start-up costs. A further consideration is the fact that standard capital budgeting techniques, such as Net Present Value (NPV), cannot incorporate the flexibility to respond to new information and strategic responses explicitly into their investment analysis. This paper will demonstrate the use of Real Option Analysis (ROA) to provide guidelines for decisions about closing operations in adverse market conditions.     

Active Roll Control of Single Unit Heavy Road Vehicles

Summary Strategies are investigated for controlling active anti-roll systems in single unit heavy road vehicles, so as to maximise roll stability. The achievable roll stability improvements that can be obtained by applying active anti-roll torques to truck suspensions are discussed. Active roll control strategies are developed, based on linear quadratic controllers. It is shown that an effective controller can be designed using the LQG approach, combined with the loop transfer recovery method to ensure adequate stability margins. A roll controller is designed for a torsionally flexible single unit vehicle, and the vehicle response to steady-state and transient cornering manoeuvres is simulated. It is concluded that roll stability can be improved by between 26% and 46% depending on the manoeuvre. Handling stability is also improved significantly.     

Finding a balance: companies, seafarers and family life

Separation from partner and family has been found to be one of the most significant causes of stress for seafarers, with separation from the family one of the most important 'stress' factors influencing a decision to reduce planned sea service. Drawing on in-depth interviews with seafarers' partners in the UK, China and India, this paper focuses on the impact of seafaring on family life, with particular attention given to the effects of differing conditions of service and the range of company support available to seafarers and their partners. The paper concludes that the negative consequences of seafaring can be minimized by such policies as shorter trips, continuous employment (rather than employment by voyage) and opportunities for partners and families to sail. Whilst these measures may have financial costs, these can be off-set by improved retention of seafarers and the avoidance of stress-related illnesses. Indeed, at a time when there is a projected shortfall of well-trained seafarers, such steps may be sound company policy     

The growth of fleets registered in the newly-emerging maritime countries and maritime crises

This paper suggests the existence of a feedback relationship between the dynamic entrance of less-developed countries in shipping and the prolongation and deepening of maritime crises. The duration and extent of the transitional period of crisis depends also on the specific terms of the 'succession' procedure between fleets with different cost levels. During the last major maritime crisis, nations at a less advanced stage of development entered the maritime industry producing a service that had become—more or less—'standardized', following the Vernon product cycle more than all other cycles. The distribution of world tonnage among the different groups of countries underwent major changes as the effects of the economic crisis after 1973, which coincided with developments in the supply of tonnage, created favourable conditions for the rise of the lower cost fleets of developing countries, in a feedback relationship. The restoration of freight levels during the late 80s and early 90s, which was accompanied by a certain stabilization in the various groups of countries' shares in the world fleet, corroborates from the opposite direction the hypothesis of a close interrelationship between maritime crisis and changes in the international hierarchy in shipping.     

The Role of Spatial Data Management Strategies in ICZM in Ireland

This article explores how a fresh approach to integrated coastal zone management (ICZM) in Ireland might be forged through the identification of a number of key innovative cross-sectoral professional initiatives and interdisciplinary academic thinking in this sector. It includes three interlinked research themes that assess existing cross-sectoral data management issues (to include an assessment of readiness for the INSPIRE and compliance with the Re-use of Public Sector Information European Union Directives), the degree of cross-pollination between the various sectors involved in managing the Irish Coastal Zone (to identify the need (or otherwise) for capacity- building to encourage cross-fertilization of ideas, skills, and knowledge exchange), and cross-professional competencies (to assess the desire/need (if any) for those working in coastal zone management to add to their existing competencies through continuous professional development or lifelong learning opportunities). Indeed, the specific competencies for coastal practitioners are identified here and these further illustrate the need for professional recognition of the role, responsibilities, and therefore the requirement for an appropriately qualified “Coastal Manager” professional, one that is seen not merely as a nicety but rather a necessity—a core enabler in any future innovative and integrative management approach.     

Finding a balance: companies,seafarers and family life

Separation from partner and family has been found to be one of the most significant causes of stress for seafarers, with separation from the family one of the most important ‘stress’ factors influencing a decision to reduce planned sea service. Drawing on in-depth interviews with seafarers' partners in the UK, China and India, this paper focuses on the impact of seafaring on family life, with particular attention given to the effects of differing conditions of service and the range of company support available to seafarers and their partners. The paper concludes that the negative consequences of seafaring can be minimized by such policies as shorter trips, continuous employment (rather than employment by voyage) and opportunities for partners and families to sail. Whilst these measures may have financial costs, these can be off-set by improved retention of seafarers and the avoidance of stress-related illnesses. Indeed, at a time when there is a projected shortfall of well-trained seafarers, such steps may be sound company policy     

Successful Transplantation of a Fragmenting Coral,Montipora digitata,for Reef Rehabilitation

The scleractinian coral Montipora digitata (Acroporidae) is a common reef flat species that thrives under high levels of light and water turbulence, and propagates successfully by natural fragmentation. It was used for transplantation experiments in an attempt to restore a degraded lagoon environment in the northwestern Philippines. Branches about 5 cm high from a natural population in the lagoon were transplanted to dead coral outcrops or knolls in two locations (Binlab and Malilnep-Ac) with different environmental characteristics. Growth and survival were significantly better at Malilnep Ac, which resembled the natural habitat of the species more closely. Environmental conditions at this site also favored the establishment of a greater diversity of species around the coral transplants. There was no difference in performance between transplants on vertical and horizontal surfaces, and the transplants showed limited differences due to density within the experimental range. Significant survival of detached, transplanted colonies or fragments thereof around the bases of the experimental bommies at the more successful site was an additional positive outcome. Water motion showed significant effects on survival and growth, possibly enhancing the suitability of the more successful site for transplantation. These results demonstrate the potential of coral transplantation to initiate the establishment of natural communities in degraded reef areas, a concern for coastal managers in developing countries.     

A field study of the effectiveness of sacrificial anodes in ballast tanks of merchant ships

Sacrificial anodes have become a standard practice for the protection of ballast tanks of merchant vessels against corrosive damage. A well protected tank should extend the life span of a ship and consequently enhances its economic value. An in situ survey comprising more than 100 merchant vessels provided the opportunity to measure the impact of these anodes on the life expectancy of these vessels. Contrary to the general belief of these anodes’ beneficial effect, no significant difference was found in our observations in terms of corrosion occurrence between ship populations with and without sacrificial anodes, across all ship ages. This may be explained by the highly variable conditions and the complex geometry in a ballast tank severely impede optimal and straightforward installation of these anodes in these tanks. Also, poorly placed anodes in it may harm the integrity of the coating of the tank. We therefore plead for uniform and clear rules on anode installation and inspection.