The Effects of the Credit Crunch on the Shipping Industry, Dissertation – Abstract Example

Abstract

This paper serves to determine and evaluate the extent of the global credit crunch on the shipping industry, which is a capital intensive venture that leans heavily on the banking sector’s financing to ensure its solvency and continued viability

Insights will be provided regarding the responses of the shipping lines like Maersk, Neptune Orient Kline, APL Limited, MOL, Hyundai Merchant and Marine, CMA GCM, terminal owners, commercial shipping management companies like Maritime Tankers and Shipping Company (MTSC) that has centrally positioned itself to meet all  its customer’s expectations and stakeholders aspirations since 2006, Governments like USDA, China, India, Russia, and Brazil, financial institutions strategies, and the views of the experts in the industry, in light of the impact of the crisis on the overall industry.

Mortished(2008), says it well when he remark that the shipping industry was geared for high volume growth, with China in particular expected to contribute to double digit increases, until a slowdown in global trade began hurting the cash flow on the shipping companies (Mortished, C.,2008).

The methodology used to gather the necessary primary and secondary source data for evaluation, using the Statistical Package for Social Scientist  (SPSS) software program, will be in the form of questionnaires, and interviews to ensure the that hypothesis is supported with information that is reliable, confidential, consistent, and accurate. Additionally,the mixedmethod strategy postulated by Creswell (2003) will be embraced in objective, data, and interpretation stages of the research.

Findings obtained  will be compared to the predictions and opinions of the experts in the industry to assist in the authentication of the measurement process, the aims and objectives  of the research regarding the effects of the credit crunch on the industry, while recommendations and conclusions that will be made will serve to ensure future players in the industry are more strategically prepared technically for future encounters , especially to consider  the growing consensus that the shipping industry can form alliances and develop other approaches so that it can become less reliant upon the banking sector for its financing.

The research process will also highlight the possible limitations and source of errors that may exist in the data generation, especially where the integrity of the participants are concerned, as well as the levels of cooperation achieved.

Reference

Mortished, Carl. Maersk Line warns Shipping Industry needs a LifebeltThe Times.2008. <www.business.timesomnline.co.uk/tol/business/industrysectors/transport/articles5315446.exe>