Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/150451
Title: Economic rent generation through control of the freight element within the supply chain – perspective of VLCC users
Authors: Haikal Lutfi Hasbullah
Keywords: Engineering::Maritime studies
Issue Date: 2021
Publisher: Nanyang Technological University
Source: Haikal Lutfi Hasbullah (2021). Economic rent generation through control of the freight element within the supply chain – perspective of VLCC users. Final Year Project (FYP), Nanyang Technological University, Singapore. https://hdl.handle.net/10356/150451
Abstract: Like all businesses, Very Large Crude Carrier (VLCC) users seek to maximise profits and minimise risks. Profits can be increased by minimising costs, and one of the costs incurred by VLCC users is freight costs. Risks can be mitigated through having a chartering and ownership strategy that is diverse. This paper aims to find an optimal chartering and ownership strategy for VLCC users by using the modern portfolio theory. This paper focuses on the crude oil trade of Arabian Gulf to the Far East using VLCCs, for the period of 2009-2019. Overall, it was discovered that theoretically, the ownership of a 15-year-old vessel in the crude oil trade would bring the highest returns due to its low freight costs. However, after accounting for industry discrimination against older vessels, chartering on the spot market appears to be favourable on most risk levels.
URI: https://hdl.handle.net/10356/150451
Fulltext Permission: restricted
Fulltext Availability: With Fulltext
Appears in Collections:CEE Student Reports (FYP/IA/PA/PI)

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