Case solution ocean carriers harvard business case

Total number of vessels is equal to number of vessels in service last year plus new ships delivered minus scrapping and sinking. To conclude, year policy of the company should be revised as well in order to decide whether it is profitable or not.

Ecolife,paraphrased Estimates state that the plastic gyre in the Pacific Ocean is "close to the size of two Texas's combined.

Supply and demand specifies daily spot rates. To calculate the fair value see table 3 to the right.

Ocean carriers case solution excel

Last but not least, the company has to question the tenability of its year policy. Supply and demand specifies daily spot rates. Also; with regard to the long-term profits of the industry, the NPV evaluations show that Ocean Carriers needs to revise their 15 years of operating policy. An arrangement of endeavors reached MH demonstrated unsuccessful and the Malaysian carrier powers issued a press discharge at am expressing the flight and inquiry operations by Malaysia, Vietnam, and Thailand. For the company, it will be better off to keep the ships operating rather than 3 scrapping. Summary of facts In January , Mary Linn, vice president of Finance for Ocean Carriers, had to decide whether to accept an offered leasing contract for the duration of three years. Iron ore vessel shipments are going to increase due to new players joining the iron ore industry: India and Australia. Over the period —, we find that 1 unlevered bank assets underperform passive portfolios of maturity-matched U. In order to do so, they will have to take into account the fluctuations of the daily spot rates in the short and long terms, as well as existing differences in taxation policies within its offices in Hong Kong and in the United States. Because of high cost regulations, if the vessel is older than 15 years they either sell it to second hand market or scrap.

OCI is an International provider of Marine transportation services mainly focussing on Dry Bulk commodities mainly iron ore and coal. Conversely in Hong Kong the value is 1, which leads a better position for Ocean Carriers.

Our calculations show that NPV in the first scenario is negative in both -6, and - 4, due to very high taxes, while in the second scenario the NPV is positive in both 1, and 4, Introduction There is presently an island of plastic floating in the pacific ocean. Words:Paragraphs: 20, Pages: 4 Publication date: August 28, Sorry, but copying text is forbidden on this website!

After the closure of the contract, further income would be evaluated based on expected market daily hire rates. Results show that the NPV of a ship after 15 years is higher than the scrap value of 5 million dollars.

ocean carriers free cash flows

The conditions for the proposed lease are shown in exhibit 1. An arrangement of endeavors reached MH demonstrated unsuccessful and the Malaysian carrier powers issued a press discharge at am expressing the flight and inquiry operations by Malaysia, Vietnam, and Thailand.

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Ocean Carriers Case Report Essay