INVESTMENT OPPORTUNITIES IN SECOND-HAND TONNAGE. A REVIEW OF PROFITABILITY 1971-76 AND PROSPECTS 1976-81

In a depressed freight market there are still opportunities for profitable shipping investment provided vessels can be acquired at both the appropriate price and time, and provided that they are traded prudently. In many shipping sectors second-hand hull values have dropped to just above scrap levels. The purpose of this survey is to quantify shipping revenues of second-hand vessels purchased in a depressed freight market. To accomplish this aim costs and revenues of vessels purchased in the 1971/72 shipping depression are analysed for the period 1971/76 in order to assess the overall profitability of vessels trading in the spot and timecharter markets. The following vessel types are analysed: 15,000 DWT 'Tweendecker; 25,000 DWT Bulk Carrier; 65,000 DWT Bulk Carrier; 50,000 DWT Tanker; 100,000 DWT Tanker. Similar analysis is undertaken for vessels purchased in 1976, and estimates of fully built-up trading costs for the above vessel types up to 1981 are forecast in order to assess the minimum required freight rate which owners need in order to justify current investment in shipping.

• Corporate Authors:

  Drewry (HP) (Shipping Consultants) Limited

  Palladium House, 1-4 Argyll Street
  London W1V 1AD,   England 
• Publication Date: 1976-7

Media Info

• Pagination: 88 p.

Subject/Index Terms

• TRT Terms: Bulk carriers; Chartering; Economic analysis; Financing; Market assessment; Ship operations; Ships
• Old TRIS Terms: Economic analysis (Ship operation); Ship financing
• Subject Areas: Economics; Marine Transportation; Operations and Traffic Management; Vehicles and Equipment;

Filing Info

• Accession Number: 00139393
• Record Type: Publication
• Source Agency: Drewry (HP) (Shipping Consultants) Limited
• Files: TRIS
• Created Date: Sep 16 1976 12:00AM