A study on risks in maritime transportation

• Main Author: Lee, Nathanael Ji Hua.
• Other Authors: Teo Chee Chong
• Format: Final Year Project
• Language: English
• Published: 2011
• Subjects: DRNTU::Engineering::Maritime studies
• Online Access: http://hdl.handle.net/10356/44994
• Institution: Nanyang Technological University

Globalisation has changed the dynamics of today's supply chain, especially in the maritime leg. Increasing demand for timely and efficient delivery of cargo has spurred shippers, carriers and terminal operators to enhance their supply chain performances and try to mitigate the possible risks involved in their supply chain. This report aims to identify several significant maritime transportation risks involved in the bulk shipping industry and discuss the causes and effects of these risks on the maritime leg of supply chains. The impacts of these risks on the shipment of different bulk commodities such as grain and iron ore will also be examined. The categories of risks can be divided into operational, disruptive and financial. Port congestions (operational) and weather (disruption) are among the top reasons for delays in shipments, while an economic crisis was cited as a significant financial risk. Research interviews were conducted with dry bulk shippers and ship owners to investigate the various mitigation strategies adopted to deal with these risks. These include better port planning or having dedicated berths to ease port congestions and having armed guards on board to fend against pirates. Players involved in maritime transportation can also collaborate together by embarking on long term projects such as port development or agreements that help to maintain the price level of bunker in times of an economic recession.