Highlights We analyse fleet renewal decisions, taking into account ship scrapping subsidies. We present a fleet renewal decision model which maximizes firm profit given market demand and a scrapping subsidy. We compare the optimal fleet renewal schemes with and without the subsidy. We apply the model to China COSCO Shipping.
Abstract We introduce a novel dimension to the fleet renewal decisions of a shipping company, taking into account the effects of ship scrapping subsidies. The fleet renewal behavior of a company is analyzed with focus on early scrapping decisions prompted by the subsidy. We present a fleet renewal decision model which maximizes firm profit given market demand and the features of a scrapping subsidy. To assess the effects of a potential subsidy on corporate decisions, we compare the optimal fleet renewal schemes with and without the subsidy. We calculate the outcome of such a policy measure for China COSCO Shipping.
The impact of ship scrapping subsidies on fleet renewal decisions in dry bulk shipping
2019-04-24
13 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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