Tanker Shipping Market Outlook Case Study Example | Topics and Well Written Essays - 500 words

Tanker Shipping Market Outlook - Case Study ExampleFinally, there would be capacity issues imposed by ship route regulations associated with allowable freight sizes that could further limit profitability and competitive advantage. The business recognizes bell issues in proposing recent strategies, evident in recognition of RFID investment and concerns oer the pricing model after investing in RFID. Is diversification the most effective strategy to improve the competitive position and profitability of Great Lakes Carriers or should the business continue with its current operational model for iron ore freight? D. Conduct a research study on safety risks associated with railroad canalise versus lake shipment to present to customers currently using railroad for grain deliveries and enhancing railroad market share in the process. Solution A would be the most operable to GLC. Purchasing the new fleet would not only serve new markets and improve profitability, but it would to a fault gi ve the business more assets. Leszczynski (2009) identifies that new ships check almost the same depreciated value after five years as at the time of purchase. Thus, the life cycle of these ships gives more asset protection and would also improve the capacity of Great Lakes Carriers to gain more market share. The low capacity ships required due to size restrictions by regulatory forces on the lakes cost approximately 43 million USD (UNCTAD, 2006). It is also common practice in the maritime shipping industry to hedge against potential risks, such as pack decreases, through Freight Forward Agreements (Kavussanos, 2003). This could help offset the one-time high investment as well as new market share improvements. GLC should consult with new and used ship sellers to identify the most practical solutions for procurement.