Strategies to deal with volatility in shipping

• Main Author: Chua, Ming Han
• Other Authors: Lam Siu Lee, Jasmine
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2022
• Subjects: Engineering::Maritime studies
• Online Access: https://hdl.handle.net/10356/158364
• Institution: Nanyang Technological University

As the world becomes more interconnected through globalization, international trade volumes have expanded, and so have the shipping industries. However, with the good comes the bad, the problems faced by one country today can easily send tremors worldwide. As a result, over time, there will be more uncertainties and volatilities faced by dry bulk shipping companies. This paper aims to investigate which of these uncertainties and volatilities possess the highest risk factor to dry bulk shipping firms. Simultaneously, shipping strategies were also discussed based on their effectiveness in mitigating the risks caused by the uncertainties and volatilities. Throughout the study, each of the findings were supported by literature reviews, interviews, and evaluated through an original quality function deployment approach to determine the most effective strategies. It was found that all the uncertainties and volatilities prioritized by dry bulk shipping companies can be tackled by specific strategies with high effectiveness. While each of these strategies have different functionality and benefits, they can be used in conjunction with each other. Lastly, it is best recommended that having a balance mix of these strategies and adjusting them accordingly is the most optimal.