6. 2. The organization of the shipping market Defining the maritime market Defining demand / customers Defining the suppliers Shipping= Παίκτες/agents: Shippers, shipowners, brokers, shipbuilders, bankers, regulators. Shipping is a way of life, not only business! An overview below…

10. Product differentiation In shipping (how a cargo is shipped) Price (Demand is relatively price inelastic. As transport cost only 2.5%, has little or no impact on the cargo volume transported) Speed ($1mil. Inventory cost, with 10% int.rate, for 3-month period costs $25.000. If 1.5 month period, it worth paying 12.500 more freight…for a speeder ship…) Reliability (just in time!) Security (the cost of loss/damage/piracy) -------------------------------------------------------------- The economic model of sea transport below

12. Economic model of sea transport Bulk (liquid/oil/chemicals/wine etc, Major/grain/coal/ironore/bauxite/pausphate, Minor/steel/cement/ salt/ wood/ etc) Liner (loose, containerized, palletized, pre-slung small items cargo, liquid, refrig., heavy) Specialized (ships for specific cargo types/vehicles forest, refrig. Gas, etc)) Differences in 1.Value 2.Volume 3.Number of transactions 4.Commercial systems

16. Ship size and economies of scale