Maritime Economics & Port
Economics
Summary of Lectures
University of Antwerp | Faculty of Business and Economics
Prof. dr. Christa Sys
,Les 2: Introduction to Maritime Economics
Course Content Overview
The course covers the following major themes:
• Knowledge of stakeholders: shipping companies, brokers, shippers, expedition companies,
stevedores, governmental bodies, etc.
• Main economic parameters of sea-going vessels: ship measurements, tonnage, capacities.
• Main characteristics and evolutions in maritime transport, including technological changes
(RoRo, containerisation, etc.).
• Ship management — both technical and economic aspects.
• Main maritime documents.
• Important maritime issues: continuous supply-demand imbalance, world trade structure,
fleet composition, shipping policies, open registry flags, etc.
Definition of Maritime Economics
Maritime Economics is defined in multiple complementary ways:
• The application of general economic theories to the maritime world (Goss, 2002;
Grammenos, 2002).
• The application of economic tools to understand and improve the allocation of resources to
and within the maritime sector (Heaver, 1993).
• 'The core of the field remains the choice of ships, the analysis of shipping markets and the
interconnections of shipping through ports with supply chains' (Heaver, 2012).
Key characteristics:
- Dynamic in nature
- Subject to constant CHANGE
- Highly unpredictable.
Maritime Economics operates on two levels:
• Micro level (shipping firm): Profit/loss analysis, increasing average load factor, yield per
tonne/TEU, investment decisions.
• Macro level: Changes in world shipping, trade volumes, fleet supply.
Incoterms® 2020
Incoterms (International Commercial Terms) are issued by the International Chamber of
Commerce (ICC) in Paris. They have been in use since 1936 and were last updated in 2020,
effective January 1, 2020.
Incoterms manage the transfer of costs and risk between buyer and seller in international trade
contracts.
Functions of Incoterms®
Incoterms primarily regulate the buyer-seller relationship with regard to:
• Obligations for the transportation route
• Costs for the transportation route
• Risk coverage
• Who obtains shipping documents and bears associated costs
• Who pays customs duties
• Who obtains transport documents and bears their costs
• Who insures the goods and who bears the cost
• Notification obligations between parties
, • Inspection responsibilities and costs
• Packaging obligations
Classification by Group
Incoterms 2020 are divided into four groups:
• Group E – Departure Clause: EXW (Ex Works)
• Group F – Shipment without seller bearing transport costs: FCA, FAS, FOB
• Group C – Shipment with seller bearing transport costs: CFR, CIF, CPT, CIP
• Group D – Arrival Clauses: DAP, DPU, DDP
The 11 Incoterms® 2020 Clauses
• EXW – Ex Works
• FCA – Free Carrier
• FAS – Free Alongside Ship
• FOB – Free On Board
• CFR – Cost and Freight
• CIF – Cost, Insurance and Freight
• CPT – Carriage Paid To
• CIP – Carriage, Insurance Paid To
• DAP – Delivered at Place
• DPU – Delivered at Place Unloaded (formerly DAT)
• DDP – Delivered Duty Paid
7 Key Changes in Incoterms 2020 vs. 2010
• DAT changed to DPU
• Insurance requirements clarified in CIF and CIP
• Cost and cost structures now clearly specified
• Security requirements in transport clearly detailed
• Provisions added for own transport (not just third-party)
• FCA and FOB: changes regarding Bills of Lading
• More user-friendly presentation and design
Key Incoterms Question (Exam Practice)
FOB vs. CIF: Under FOB, the seller bears risk until the goods are loaded on board; the buyer
then takes over costs and risk. Under CIF, the seller pays freight and insurance to the port of
destination, but risk passes at the same point as FOB.
Which Incoterm should you use to sell to China while responsible for export clearance, carriage
to destination port, and import clearance (but NOT unloading)? → DDP
Which Incoterm lets the buyer arrange all transport and insurance from the seller's premises? →
EXW
, International Trade and Demand for Maritime Shipping
The Demand Chain
From Economic Activity to Maritime Demand
This schema illustrates the logical chain: Economic Activity → Structure of World Trade →
Seaborne Transport → Fleet Demand → New Shipbuilding Demand, with Fleet Supply driven by
transport efficiency on the supply side. The diagram shows how general economic conditions
filter through the structure of world trade to produce demand for maritime services, which then
drives fleet investment decisions.
Economics
Summary of Lectures
University of Antwerp | Faculty of Business and Economics
Prof. dr. Christa Sys
,Les 2: Introduction to Maritime Economics
Course Content Overview
The course covers the following major themes:
• Knowledge of stakeholders: shipping companies, brokers, shippers, expedition companies,
stevedores, governmental bodies, etc.
• Main economic parameters of sea-going vessels: ship measurements, tonnage, capacities.
• Main characteristics and evolutions in maritime transport, including technological changes
(RoRo, containerisation, etc.).
• Ship management — both technical and economic aspects.
• Main maritime documents.
• Important maritime issues: continuous supply-demand imbalance, world trade structure,
fleet composition, shipping policies, open registry flags, etc.
Definition of Maritime Economics
Maritime Economics is defined in multiple complementary ways:
• The application of general economic theories to the maritime world (Goss, 2002;
Grammenos, 2002).
• The application of economic tools to understand and improve the allocation of resources to
and within the maritime sector (Heaver, 1993).
• 'The core of the field remains the choice of ships, the analysis of shipping markets and the
interconnections of shipping through ports with supply chains' (Heaver, 2012).
Key characteristics:
- Dynamic in nature
- Subject to constant CHANGE
- Highly unpredictable.
Maritime Economics operates on two levels:
• Micro level (shipping firm): Profit/loss analysis, increasing average load factor, yield per
tonne/TEU, investment decisions.
• Macro level: Changes in world shipping, trade volumes, fleet supply.
Incoterms® 2020
Incoterms (International Commercial Terms) are issued by the International Chamber of
Commerce (ICC) in Paris. They have been in use since 1936 and were last updated in 2020,
effective January 1, 2020.
Incoterms manage the transfer of costs and risk between buyer and seller in international trade
contracts.
Functions of Incoterms®
Incoterms primarily regulate the buyer-seller relationship with regard to:
• Obligations for the transportation route
• Costs for the transportation route
• Risk coverage
• Who obtains shipping documents and bears associated costs
• Who pays customs duties
• Who obtains transport documents and bears their costs
• Who insures the goods and who bears the cost
• Notification obligations between parties
, • Inspection responsibilities and costs
• Packaging obligations
Classification by Group
Incoterms 2020 are divided into four groups:
• Group E – Departure Clause: EXW (Ex Works)
• Group F – Shipment without seller bearing transport costs: FCA, FAS, FOB
• Group C – Shipment with seller bearing transport costs: CFR, CIF, CPT, CIP
• Group D – Arrival Clauses: DAP, DPU, DDP
The 11 Incoterms® 2020 Clauses
• EXW – Ex Works
• FCA – Free Carrier
• FAS – Free Alongside Ship
• FOB – Free On Board
• CFR – Cost and Freight
• CIF – Cost, Insurance and Freight
• CPT – Carriage Paid To
• CIP – Carriage, Insurance Paid To
• DAP – Delivered at Place
• DPU – Delivered at Place Unloaded (formerly DAT)
• DDP – Delivered Duty Paid
7 Key Changes in Incoterms 2020 vs. 2010
• DAT changed to DPU
• Insurance requirements clarified in CIF and CIP
• Cost and cost structures now clearly specified
• Security requirements in transport clearly detailed
• Provisions added for own transport (not just third-party)
• FCA and FOB: changes regarding Bills of Lading
• More user-friendly presentation and design
Key Incoterms Question (Exam Practice)
FOB vs. CIF: Under FOB, the seller bears risk until the goods are loaded on board; the buyer
then takes over costs and risk. Under CIF, the seller pays freight and insurance to the port of
destination, but risk passes at the same point as FOB.
Which Incoterm should you use to sell to China while responsible for export clearance, carriage
to destination port, and import clearance (but NOT unloading)? → DDP
Which Incoterm lets the buyer arrange all transport and insurance from the seller's premises? →
EXW
, International Trade and Demand for Maritime Shipping
The Demand Chain
From Economic Activity to Maritime Demand
This schema illustrates the logical chain: Economic Activity → Structure of World Trade →
Seaborne Transport → Fleet Demand → New Shipbuilding Demand, with Fleet Supply driven by
transport efficiency on the supply side. The diagram shows how general economic conditions
filter through the structure of world trade to produce demand for maritime services, which then
drives fleet investment decisions.
