Essay on Drybulk Shipping - Strategic Analysis

Words: 3417
Pages: 14

Drybulk Shipping – Strategic Analysis
By Hilmi Armoush HA519

Table of Contents

Executive Summary 2
Macroeconomic Drivers 3
PESTEL Analysis 3
Key Drivers 4
Critical Uncertainties 4
Future Scenarios 6
Sailing in the Dark 6
Imbalance Seas 6
The Greener Wins 7
Sea Marathon 8
Competitive Analyses – Drybulk Shipping 8
Market Outlook 8
Porter Five Forces Model 9 Entry Barriers 9 Threat of Substitutes 10 Bargaining Power of Buyers 10 Bargaining Power of Suppliers 10 Rivalry between Established Competitions 10
Strategic Views 11
Key Success Factors 11
Strategic Management 11
Conclusion 12
References 13

Executive Summary
In 2008, the global economic crises had a strong impact on the maritime market. A drastic
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Key Drivers
In order to create future scenarios for drybulk industry; around 26 key drivers with deep trends working in the world and have an effect on the development of drybulk shipping are identified in the below chart; those drivers are shown according to their degree of importance and uncertainty. (Chart-1)

Critical Uncertainties
As shown in (Chart-1), the uncertainties surrounding the future of drybulk market are numerous; the most critical uncertainties are expected to be "the growth of global economy " and "the development of drybulk seaborne trade". * The growth of global economy could take any shape after 2008 financial crises, accordingly; international trade, interest rates, consumption and many other drivers would also take shape. Many industries will be influenced and fairly obviously, shipping is no exception.

* The development of Drybulk Seaborne Trade is the backbone of drybulk market. Main dry bulk cargoes grew from 1.28 billion tons in 2000 to 2.09 billion tons in 2008, mainly driven by steel industry and related raw materials, iron ore and coal. Thus, any change in the macroeconomic environment would affect its competitive structure.


Future Scenarios
Sailing in the Dark

June 2015
The Baltic Dry Index had another slowdown this quarter standing at 3000 points, “as the pressure of intense supply over demand continues,