Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/158306
Title: Feasibility of bulk shipping investment - investment into supramax segment with time horizon between 2023 & 2027
Authors: Zhuang Zhuohan
Keywords: Engineering::Maritime studies
Issue Date: 2022
Publisher: Nanyang Technological University
Source: Zhuang Zhuohan (2022). Feasibility of bulk shipping investment - investment into supramax segment with time horizon between 2023 & 2027. Final Year Project (FYP), Nanyang Technological University, Singapore. https://hdl.handle.net/10356/158306
Abstract: The objective of this report is to determine the attractiveness of investing in the Supramax bulk carrier segment during the investment horizon 2023 - 2027. The theoretical viewpoint of both supply and demand impacts the physical and paper price, and our research revealed that market fundamentals are reflective of the current economic conditions of the shipping market. The LTAV financial model was developed to accommodate the complex valuation of a Supramax. As a Supramax can be deployed differently through the investment horizon and netting different amount of revenue, different scenarios were permutated throughout the 5-year investment period. A sensitivity analysis will be attempted to compare the results in order to search for a correlation between TCE, NPV, and IRR for the investment. While the outcome is that it is feasible to invest in Supramax within the investment horizon of 2023/2027. The approach used in this volume does, however, have its limitations in the certain areas, such as ignoring short-term volatility and not incorporating the value of real option, etc. Different risk attitudes and risk carrying abilities will be displayed by different investors. Some investors are fearful of taking risks, while others have a great desire to do so. While solid technical and basic research might lead to a profitable investment, a prudent investor should also consider the immeasurable external environment and shocks that could influence his or her selection. As a result, it is advised that the cautious investor considers all considerations and weighs the benefits and drawbacks before making a decision.
URI: https://hdl.handle.net/10356/158306
Fulltext Permission: restricted
Fulltext Availability: With Fulltext
Appears in Collections:CEE Student Reports (FYP/IA/PA/PI)

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