The programme covers the micro-economic structure of the shipping markets including freight, second-hand, newbuilding and scrap markets and presents how these shipping markets interact.
| Course Leaders | ||
Prof. Amir Alizadeh |
Shipping Economics and Finance |
Bayes Business School (former Cass Business School) |
The course aims to provide delegates with both a theoretical foundation as well as practical hands-on experience on modern shipping economics and investment. It provides delegates with the essential knowledge of shipping economics, operations and investment management.
Formulation of different types of shipping contracts is also discussed and practical examples are provided.
The programme then continues with an overview of specialised shipping sectors and liner shipping industry as well as a thorough discussion on current trend and developments in the shipping industry including fuel efficiency and cost management.
The second part focuses on fundamentals of shipping investment including cash flow projection and analysis, different techniques used in capital budgeting techniques, capital structure and cost of capital in shipping projects, investment management of shipping projects, asset allocation and shipping investment strategies.
The course leader, Prof. Amir Alizadeh of Bayes Business School (formerly Cass Business School), is internationally recognised academics in the fields of shipping and commodity finance, and risk management.
His theoretical and applied research work has been published in leading academic and professional journals and he also provide consultancy services to the industry on different aspects of commodity and shipping risk management.
Please click here for our 2024 course brochure.
Course Overview
| Module Outlines | ||
Introduction
An overview of the dry and wet bulk commodity trades, how the liner and tramp trades work. We also look at the structure of shipping companies. We discuss the regulation of the shipping industry, explaining the role of class, register and the international regulatory structure.
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Introduction to the Shipping Industry |
Overview of commodity trade Types of shipping service World fleet by type and ownership |
Shipping Regulation |
Registers Class International Law |
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Economic Analysis of the Shipping Markets
A look at the freight, newbuild, second-hand and demolition markets. |
Economic Analysis of the Shipping Markets |
The four key shipping markets Freight Newbuild Second-hand Demolition |
Shipping Costs & Revenue Management
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Part 1: Shipping Contracts |
Shipping costs and expenses Charter contracts (voyage, trip, bareboat, time) Charter rates, payments and fixture reports Tanker voyage rates (Worldscale) Charter parties (voyage and time charter) |
Part 2: Voyage Cash Flow Analysis |
Voyage cash flow analysis Post fixture operation Speed adjustment Laytime calculation |
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Liner & Container Shipping
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Part 1 |
Brief history of liner shipping The containerisation revolution Container Shipping Cost Components Fleet composition and vessel values |
Part 2 |
From liner conferences to alliances Main liner shipping routes Liner pricing, tariffs and freight market |
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LPG, LNG & Chemical Shipping
A look at the economics and structures behind the gas and chemical trades.
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LPG Shipping |
Structure and economics of LPG market
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LNG Shipping |
Structure and economics of LNG market |
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Chemical Shipping |
Chemical trade and tanker market |
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Introduction to Shipping Finance & Cash Flow Projection and Analysis
|
Introduction to ship finance |
Brief historical overview Sources of capital for shipping Bank finance and loan types Capital markets Equity Debt |
Cash Flow Projection & Analysis |
Asset Play v Service Provision Financial Statements and Cash Flows in Shipping Annual Cash Flow Projection Example Free Cash Flow, Equity Cash Flow, Asset Covers, and Breakeven Rates |
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Project Appraisal & Investment Decision in Shipping
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Part 1
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Time value of money What is an investment? Classification of assets Present Value & Future Value Risk and Present Value Compounding Continuous compounding & discounting Inflation & interest rates |
Part 2 |
How to evaluate projects Net Present Value Profitability Index Payback Internal Rate of Return |
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Risk, Return & Portfolio Theory |
Risk, Return & Portfolio Theory |
Estimating Return and Risk How to measure returns How to measure risk Comparison of risk across assets Correlation between asset returns and prices Combining assets into portfolio |
Cost of Capital & Optimal Capital Structure
|
Part 1: Company and Project Costs of Capital |
Capital Structure and Cost of Capital Weighted Average Cost of Capital Measuring the Cost of Equity Estimating Discount Rates |
Part 2: Capital Structure & Debt Policy |
Optimal capital structure Debt policy & tax shield Cost of financial distress Example of WACC calculation for shipping investment project |
|
Investment Under Uncertainty
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Part 1: Uncertainty and Investment Appraisal |
Incorporating uncertainty in Investment Analysis Scenario analysis Sensitivity analysis and NPV Simulation method in NPV analysis |
Part 2: Uncertainty, Flexibility & Real Option Valuation |
The value of flexibility and optionality in projects What are Real Options? Real Option value derivers Real Options in Shipping Projects Real Option Valuation |
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Investment Strategies & Investment Management in Shipping
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Part 1: Investment theories, performance measures and ship valuation |
Asset and portfolio performance evaluation Theories of asset allocations (passive, dynamic and adaptive) Ship valuation and factors defining ship values Implied forward ship values Ship values and FFA relationship |
Baltic Exchange Investor Indices |
An overview of the Baltic Exchange's services for ship investors. |
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Part 2: Shipping investment models and their performance |
Investment timing in shipping Momentum v Contrarian investment strategies Historical performance of investment strategies Shipping investment based on PE ratio |
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Part 3: Investing in Shipping Stocks & Equities |
Historical performance of shipping stocks Stock selection strategies Tactical asset allocation and shipping equity investment Performance of simple trading strategies Optimisation of shipping stock portfolios |
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Terms and Conditions
The Baltic Exchange must be in receipt of full payment before access to the course is granted.
For the e-learning course, each delegate is provided with 180 days access to the course. If you fail to complete the course in 180 days, then you may extend the course by paying a change fee (£50 + vat per 30 days). No course material may be copied or reused without the permission of the Baltic Exchange.
You must not allow any third party to use your account information and/or computing equipment to access the digital content or course that you have booked. You may only print off any course materials for your own personal use. You must not provide, offer to sell, license or transfer the course materials (whether in whole or in part in any manner or form or in or on any media) to any other person unless we have agreed to this in writing.
In the event that we are unable to deliver classroom learning due to events beyond our control, delegates will be offered the choice of a discounted online only option, refund, reschedule to a future date, or access to an additional online course.
Further Question
Please contact:
Tel: +44 (0)20 3326 8465
Email: [email protected]
Previous Attendees
A.M. Nomikos & Son (UK)
ADM Germany
Aegis Overseas
AET
Anglo International Shipping Partnership
Ardmore Shipping Services (Ireland)
Arista Shipping
Atlas Shipping
Aux'ander Advisors
Bahri
Bank of America Merrill Lynch
Beaufort Shipping
Ben Line Agencies
Black Astron Energy Trading and Shipping
BP
Byzantine Maritime Corporation
Cargill
Carriers Chartering Corp
CEM Asia Trading
Chronos Shipping
Clarksons
ContiGMT Shipping
Credit Suisse
Diageo
DNB
Doric Shipbrokers
EcoPetrol
Engie
FIMBank DIFC Branch
FinnFleet Tankers
Freight Force
FRS Shipmanagement
Galbraiths
Glencore Agriculture
Greatship
GroIntelligence
Heidmar
Hellenic Bank
Holgrain
Howe Robinson
HSH Nordbank
Huarong Leasing
IMC Industrial
Ineos Trading and Shipping
Infospectrum
International Andromedia Shipping
International Registries (UK)
Io's Shipbrokers
Kuwait Petroleum Corporation
Lavinia
Lysgaard ShipHolding
Maersk Broker (UK)
Maritime Strategies International
Navigate PR
Neoria Compania de Naegacion
NIBC Bank
NorthCape Capital
NYK Line
Penfield Marine
Petredec (Europe)
RUSAL Marketing
S&P Global Platts
Scorpio Ship Management
SEB
Shell
Showa Shell Sempaku K.K.
Societe Generale
Sovcomflot
SSY
Statoil
Stolt Nielsen
Strategy Finance
Suek
Suisse-Atlantique
Tankerska plovidba d.d.
TDN Direkt
The China Navigation Co.
Total
Transpetrol Maritime Services
Tricon Energy
Triomphe Shipping
Universal Navigation