Ocean Carriers

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Title: Ocean Carriers

Essay Details:

Subject: Business

Author: Lewis J

Date: April 13, 2015

Level: University

Grade: A

Length: 3 / 651

Essay text:

In both sets of calculations, the ship had a salvage value of $5 million for the sale of the steel to the demolition yard. The 25 year analysis included the final survey cost of $1.25 million in the 25th year, resulting in one year of depreciation. Expected daily hire rates from exhibit 6 were used to calculate annual income. (c) Analysis. Average daily hire rates are determined by market supply and demand. Factors such as the number of operating vessels, number of scrapped vessels per year, the age of the ships, the efficiency of ships, and market expectations of supply and demand; consequently, these factors drive average daily hire rates...

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