Finance and risk management,Shipping finance Essay - 1

Finance and risk oversight,Shipping finance - Essay ExampleFinancing the ship industry has always evolved with the prevailing market conditions. More coronation has always been required in the industry above the owners potential to finance then the need for banks. The industry has its strengths and weaknesses, there have been opportunities, and it has also seen threats. This paper examines the relationship between shipping finance and shipping markets, the major sources of capital available in the shipping industry, the strengths and weaknesses, opportunities and threats (SWOT) in the industry.The shipping industry represents a substantial percentage of the world trade. The industry is one of the most effective forms of transport and the costs ar relatively low. It costs 11 percent and 20 percent of the transportation cost on roadstead and rails respectively. If the business is doing well it can have a high capital return of to the highest degree 25 percent per annum ( Nizam an d Ghanem 15). Shipping industry is also a dynamic industry there is repetitive investment in research and development of new technology. This contributes to the global technological growth.This industry is cyclical and relies on the changes of the global market. This yields the industry to be uncertain. The industry also experiences a shortage of skilled labour and management because there are few lot who are professionals in this field. The image of this industry is poor people tend to perceive the industry to be archaic and therefore outdated. Vessels also cause pollution of the milieu with emission of CO2 and noise.There are initiatives to make ships more environmentally friendly. This go forth make ships more acceptable. There is also a long term plan to recruit, educate, and train skilled seafarers. This will close the gap pertaining to lack of skilled labour. There is an initiative to improve propulsion technology of ships through building bigger ships, nuclear powered s hips,