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Modelling Of Energy Savings In The Shipyard


The Trading World of China Japan and the Philippines

After the Sung were defeated, the Mongol (Yuan) dynasty continued with even larger scale shipbuilding activities for foreign trade, for grain transport to Peking (their new capital) in North China, for maritime commerce with Asia and for naval operations. In 1274 and 1281, two massive fleets were assembled in an unsuccessful attempt to invade Japan. The first fleet included 900 ships, the second was much larger and carried an invasion force of quarter of a million soldiers. They reopened overland commerce to Europe and the Middle East on the silk route.

Growth versus progress

The main point of this chapter is that economic progress is much more than just an increase in the quantity of output. While increases in output are significant, they are only a small part of the story, and even then, any significant increases in the quantity of output will almost necessarily be accompanied by changes in the nature of the output. If one reflects on the statistic that over the twentieth century income increased by about seven times, it is hard to imagine consuming seven times as much of the same output that people consumed a century earlier. Rather than eat seven times as much food, people eat different types of food, prepared differently. People travel in personal automobiles and jet aircraft rather than on horse-drawn carriages and sailing ships. People communicate via e-mail rather than by letter, and get information through television or the internet rather than from a newspaper. The changing nature of output is one of the factors that have propelled the quantity...

Introduction The Market For New And Secondhand Vessels

Undoubtedly, all the above is true but, in addition, the intrinsic characteristics of the shipping markets themselves, such as its shipbuilding cycles and speculative investments in secondhand ships, also come into play to compound the industry's notorious volatility. Shipbuilding too is a market whose variables (demand, supply and prices) are subject to distinct cyclical fluctuations. Such volatility has repeatedly led to collapses in newbuilding prices, as well as to disturbances in production, and, consequently, to severe financial problems, even bankruptcy, for shipyards and shipowners. In addition to market expectations, the price of new ships depends on shipbuilding costs and shipyard capacity. New and secondhand ship prices also correlate among themselves. Some would even argue that new and old ships are substitute commodities the first more technologically advanced, but also more expensive to acquire and with long delivery times, the second usually cheaper and in immediate...

Military preparedness

The Ottomans had made use of military advisers from western European countries since late in the eighteenth century. German military missions to the Ottoman Empire had begun in the 1880s during the reign of Abdulhamid II. By the early twentieth century, the Ottoman army was modelled mainly on the German army. Nonetheless, its disastrous performance against an alliance of other Balkan countries during 1912 and 1913 had made clear that radical changes were urgently needed. The military budget was immediately doubled and steps were taken to modernise the Ottoman military. New battleships were ordered from British shipyards, and an air force was established. In 1914 a new contingent of German officers led by General Liman von Sanders was invited to reform and reorganise the Ottoman army. There were important changes in the

The Discovery of Error

To draw attention to this clement in human action I shall draw on an earlier paper in which I attempted to identify what might represent entrepreneurial profit in successful individual action in a Crusoe context.25 Entrepreneurial profit in the Crusoe context, it turned out, can be identified only where Crusoe discovers that he has up until now attached an erroneously low valuation to resources over which he has command. Until today Crusoe has been spending his time catching fish with his bare hands. Today he has realized that he can use his time far more valuably by building a boat or making a net. He has discovered that he had placed an incorrectly low value on his time. His reallocation of his labor time from fishing to boat-building is an entrepreneurial decision and, assuming his decision to be a correct one, yields pure profit in the form of additional value discovered to be forthcoming from the labor time applied.26 This (Cru-sonian) pure profit arises from the circumstance...

How China Lost Its Lead

Then, all at once, the imperial court decided that the voyages were too expensive, perhaps because of increased threats of nomadic incursions over China's northern land border. For whatever reason, the emperor ended ocean-going trade and exploration, closed down shipyards, and placed severe limitations on Chinese merchant trade for centuries to come. Never again would China enjoy technological leadership in naval construction and navigation, or command the seas even in its own neighborhood.

Agriculture industry and services

Shipbuilding in the cocoa, cotton, shipbuilding, wool, and soap industries the volume of industrial production continued to grow until 1916. Although prices of raw materials increased rapidly, manufacturers could simply pass this on in their product prices. Moreover, many stocks had been built up during the early war years, when prices were still relatively low. During the first half of the war companies made huge profits. Long-established industries such as the cotton, margarine, and shipbuilding industries, as well as new The relatively new sector of metal production was 60 to 90 per cent dependent on German coal, iron, steel, and other metals. During the first years of the war Dutch producers were able to secure a fairly good supply of iron and steel. Profits were considerable as an effect of rising prices. The German share in supplies of iron and steel increased (Moore, 1919 64-5). In fact, there was a direct German interest in Dutch shipbuilding because of an expected shortage of...

Previous studies on unemployment and selfemployment

There is now a very considerable number of studies of particular redundancies and of the subsequent job histories of the people involved. Among industries covered in the studies undertaken in the post-war period in the UK are the following aircraft and missiles (Thomas, 1969 Wedderburn, 1964) engineering (Daniel, 1972) mining (HMSO, 1970 Bulmer, 1971) motor vehicles (Kahn, 1964 Pearson and Greenwood, 1977) railways (Wedderburn, 1965) textiles (Martin and Fryer, 1973) and shipbuilding (Sams and Simpson, 1968 Herron, 1975 Hart, 1979).5 Shipbuilding Shipbuilding (Oil rig construction)

Logrolling Rent Seeking and Rational Ignorance

U.S. threats to close U.S. ports to Japanese vessels would almost certainly violate World Trade Organization (WTO) rules that preclude such antagonistic sanctions. The basis for the U.S. closure is the Jones Act, a protectionist law passed in 1920 that guarantees U.S.-built and U.S.-owned vessels a monopoly of the country's shipping industry. The United States ignored the opportunity to discuss this matter during the WTO negotiations on maritime services in 1995 because of opposition from beneficiaries of the Jones Act. Efforts to protect the beneficiaries of the Jones Act also kept the United States from ratifying a draft Organization for Economic Cooperation and Development treaty to curb shipbuilding subsidies.

War economy and finance

A Ministry of Supply in August 1939 to meet the army's needs. A Ministry of Aircraft Production followed in May 1940. Both ministries, like the Ministry of Munitions in the First World War, recruited businessmen. However, there were other links between state and industry. Edgerton estimates that perhaps half of all munitions were produced in government-owned factories built since the 1930s, or with specialist machines supplied by the government. Private firms acted as agents managing government factories, an arrangement that persisted into the 1960s. Shipyards were modernised during the war, largely at government expense, with a remarkable extension of welding in place of riveting being the most visible evidence of progress. Defence-related research and development expanded, building upon the pre-war experimental facilities of the defence departments and their links with the arms industry and the universities. The pre-war military-industrial complex had already developed Asdic and...

Shipping Policy In Canada To 1985

Canada's participation levels in the shipping industry have been both volatile and cyclical. At the end of World War I, the government established the Canadian Government Merchant Marine Limited, which, by the early 1920s, was operating over 60 ships on a world-wide basis. This pre-eminent position was not to last, and the company was forced to close in 1936. By the end of the Second World War, which too provided a significant stimulus to Canadian shipbuilding, the publicly-owned Park Steamship Company Limited operated 150 Canadian-built, Canadian-registered, Canadian-manned ships - the fourth largest merchant fleet in the world.

Preoccupation with refinements of abstract analysis especially through the mathematical method may have injured

It is true that all the economists from the Classical writers onwards have been hopelessly wrong, but that was because their theories were based on the assumption of competition. Now, however, there is hope. We have invented marginal revenue curves and can start from the assumption of monopoly. By means of skillful a priori reasoning based on mathematics and geometry, we shall one day understand things. So in the meantime it behoves us to be careful not to say anything which might reflect upon any existing policy. When we have developed our geometrical theorems to the necessary degree of complexity, we may find ultimately that the universal monopoly is better than any other conceivable state of affairs. So far, some of our studies, based on necessarily absurd assumptions, show that monopoly might sometimes be beneficial. So go ahead with your dynamiting of shipyards and other forms of 'rationalization', with your closing down of paying coal mines, with your burning of...

Ministry of International Trade and Industry L5

The key Japanese ministry for administering industrial policy. It acts primarily through giving administrative guidance rather than through controls and subsidization. it helps firms plan long term, giving advice on the appropriate level of investment to meet future demand and exporting. its other tasks include the implementation of policies on the encouragement of small businesses, consumer protection and environmental policy. in the 1950s it took a major role in developing the steel and shipbuilding industries, in the 1960s electronics and heavy construction and in the 1980s advanced technologies.

Market Modelling Until Beenstock And Vergottis

Strandenes (1986) has also developed a model which integrates the separate models developed at Bergen for dry bulk, tankers, and shipbuilding and scrapping. Norship divided both tankers and dry cargo vessels into two size classes. It incorporates a switching mechanism in the form of combination carrier capacity, which altered their employment between dry and oil sectors in accordance with relative market profitability. Demand and supply equilibrium is imposed by matching the total demand for tanker transportation services to the supply, from the large and small tanker fleet and those combination carriers trading in oil. Similar conditions are imposed on the dry bulk sector. On the shipbuilding side, the newbuilding price is assumed to equate to the marginal cost (net of subsidy). Marginal cost is assumed to be positively related to total construction relative to exogenous shipbuilding capacity. Charemza and Gronicki (1981) present a very different perspective to the usual maintained...

The Common Agricultural Policy CAP and the environment

Crowding diseconomies Crowding diseconomies occur where the benefit from using a resource is reduced because others are also using the resource. These are important in open access situations as there is a tendency under open access for there to be more users and more exploitation of a resource than would be considered economically efficient. Perman et al (1999) give the example of the fisheries. Each fishing boat's catch reduces the chance of catch for other boats, thereby imposing a cost on the other users of the resource. Thus, the costs of catching a certain quantity become greater and as a consequence an external cost or externality is imposed on the others in the industry. (Perman et al , 1999.)

Incentives And Constraints

By the same token, while external costs are not automatically taken into account in the marketplace, this is not to say that there may not be some imaginative ways in which they can be. In Britain, for example, ponds or lakes are often privately owned, and these owners have every incentive to keep them from becoming polluted, since a clean body of water is more attractive to fishermen or boaters who pay for its use. Similarly with shopping malls Although maintaining clean, attractive malls with benches, rest rooms and security personnel costs money that the mall owners do not collect from the shoppers, a mall with such things attracts more customers, and so the rents charged the individual store owners can be higher because a location in such malls is more valuable than in a mall without such amenities.

Analyse Of Ocean Shipping


The Governments Bias in Favor of the Cooperatives

The whole fabric of modern economic developments is built upon the functioning of two main types of business organization individual and proprietorship and partnership on the one hand and the corporation on the other hand. All the unprecedented achievements of modern industrialism that have procured a continually improving standard of living for an ever-increasing population were effected by these two types of business organization. It was exclusively profitseeking business that transformed the world of horses, sailing ships, and wind mills into the world of steam power, electricity, and mass production for the needs of the masses. It was profit-seeking private business that accumulated the capital, i.e., the tools and machines, which alone have the power to raise the productivity of labor and thereby wage rates. Even the most bigoted partisans of cooperativism cannot dare to claim any of these merits for the cooperatives. The best that could be said to the praise of the cooperatives...

Rising Tide Lifts All Boats

Another pervasive illusion, held by the champions of globalization, is that remaining problems of extreme poverty will take care of themselves because economic development will spread everywhere. A rising tide lifts all boats, as the old expression puts it. If the rising tide is not lifting your boat, it is probably your own fault. The forces of globalization are sufficiently strong that everyone can benefit if they can just behave themselves.

Naval weapons and tactics

Loss the next day of one of the British ships involved, the cruiser Amphion, when it struck one of the mines that the German vessel had laid. Also significant was the sinking of three armoured cruisers, the Aboukir, Hogue and Cressy, by a single German submarine in little more than an hour on 22 September 1914. The Aboukir was thought to have struck a mine and the Hogue and Cressy were torpedoed when they stopped to pick up survivors. In all 1,459 men were lost. These incidents brought out clearly the unpreparedness of the Royal Navy for mine and submarine warfare. The Grand Fleet's bases at Cromarty and Scapa Flow lacked protection against submarines and for a time the Fleet had to take refuge in more remote anchorages, including Lough Swilly, where one dreadnought, the Audacious, was sunk by a German mine. Minesweepers had to be improvised from requisitioned trawlers and drifters and from 1915 large orders were placed for fleet sweeping minesweepers (sloops), designed on merchant...

Controlling The Nationalised Industries

'The second and final solution is the social ownership and management of the activities concerned. Railways, roads, gas, electricity, sewage, water supply, telephones are all examples where price competition in a free market is out of the question.'1 In 1975, the nationalised industries accounted for more than a tenth of Britain's national product and nearly a fifth of total fixed investment. These proportions have subsequently increased with the nationalisation of the aircraft and shipbuilding industries, and the acquisition of British Leyland and other companies. Motivation and political pressures It is commonly believed that industries are nationalised in order to protect consumers from exploitation by a natural monopoly. An examination of the history of these industries soon reveals this belief to be a myth. Telegraphs were nationalised in order to protect Crown revenues deriving from the postal monopoly, and telephones in turn were nationalised to protect Crown revenues deriving...

Value Creation at Prochnis4

The story of Prochnik shows how knowledgeable and respected managers can foster a value-creation strategy in their firms. Prochnik's flexibility in readjusting its strategy and developing new products can also be attributed to its lack of sunk assets, such as heavy capital goods, which made asset redeployment easier in the face of environmental pressures. In more capital-intensive industries (such as the Gdansk shipyards on Poland's Baltic coast), such turnarounds were not possible.

Market Modelling And Analysis

In order to serve the primary shipping markets that relate in a straightforward manner to the carriage of freight, there are important secondary markets that also provide potential avenues for research in shipping economics. The ships which carry the cargoes may be bought new or secondhand. They may also, at some point in time, need to be scrapped. This alludes to the importance of analysing the shipbuilding, ship sale and purchase (S& P) and scrap markets. Since all these shipping markets function in a totally international arena where national political boundaries pose only a minor irritation to the smooth conduct of trade and commerce, there is also a need for a worldwide focus on generic markets that are of critical import to the shipping industry, such as those for money, currencies, labour and fuel. Although the focus of this paper would appear to be limited to the market for both new and for used ships, it conforms to precedent in acknowledging that each of these markets...

The legacies of the war for the US economy

The institutional legacies were also limited, although again some exceptions can be found. Most of the wartime regulatory control agencies were terminated as soon as the war ended. The War Industries Board was shut down so abruptly that Baruch had to pay the costs of returning home for some of his employees out of his own pocket. Some attempts were made to keep some of the regulatory experiments going, but these efforts petered out in the 1920s. The railroads, the boldest experiment in nationalisation, were returned to private ownership. The Shipping Board hung on longer, and spawned a programme to loan money for domestic shipbuilding.

Strategy planning for war

53 'Cost of certain capital ships', Dec. 1913, Treasury records, series 1, box 11598, file 25942 (T 1 11598 25942), TNA Hugh Peebles, Warshipbulding on the Clyde Naval Orders and the Prosperity of the Clyde Shipbuilding Industry, 1899-1939 (Edinburgh John Donald, 1987), p. 158.

Grand strategy the Empire at bay June 1940July 1942

Meanwhile the threat to Britain's trade routes had greatly increased. From France the Luftwaffe could attack coastal shipping and sea ports all round Britain, instead of only along the east coast, and U-boats could make extended voyages in the Atlantic. British losses of destroyers off Norway and Dunkirk had reduced the number of escort vessels, as did the need to deploy destroyers in an anti-invasion role until October. The agreement made by Churchill with Roosevelt on 5 September whereby fifty obsolete, surplus American destroyers of 1918-20 vintage were exchanged for the leasing to the United States of British bases in the western Atlantic was chiefly of political importance, since the destroyers had to be modernised in overworked British dockyards. Nevertheless they were made available at a critical time.111 In the same month the German U-boats adopted their tactic of night attacks on convoys by 'wolf packs' on the surface, rendering Asdic almost useless, and from January 1941 the...

The economy the defence industries

Warship builders suffered from a decline in naval orders, and the problems of the shipbuilding industry were compounded by competition from West Germany, Japan, the Netherlands and Sweden in export markets for merchant ships. Credit arrangements or subsidies in these countries encouraged investment in more modern techniques, but the Cabinet's Economic Policy Committee took the view in 1959 that subsidies would serve no purpose in Britain until management and trade unions could agree to measures to improve industrial relations and reduce costs in line with competitors.100 By the 1960s there was surplus shipbuilding capacity in the world, and a contraction in the British industry was inevitable. The Geddes Report noted in 1966 that research and development had been neglected, industrial relations were still poor and there were too many yards chasing too few customers.101 Fairfield, the firm that had built the last British cruiser, HMS Blake, ran out of funds in 1965 and the government...

Spillover Costs

Production or consumption costs inflicted on a third party without compensation are called spillover costs. Environmental pollution is an example. When a chemical manufacturer or a meatpacking plant dumps its wastes into a lake or river, swimmers, fishers, and boaters and perhaps those who drink the water suffer spillover costs. When a petroleum refinery pollutes the air with smoke or a paper mill creates obnoxious odours, the community experiences spillover costs for which it is not compensated.


Dennis Flynn (1986) attempts to deal with the flow of bullion to the east in micro- rather than macro-economic terms, terms that closely parallel those of Chaudhuri. Instead of the silver being needed to pay for the imports of the West from the East, he claims that the precious metals were the cause of the expansion of intercontinental trade, not the response. This leaves unanswered why the East wanted silver and gold more than it wanted luxury consumers goods. Assume that the East could not have been able to buy food in the West (for it would spoil on the long voyage) or other highly useful but inexpensive goods such as iron, timber for shipbuilding and housing (too heavy and bulky relative to their value), or goods that would be used up in the course of consumption like the exported spices, calico, silks, later tea (but not porcelain, which was durable but could be put to daily use). Perhaps it could be argued that the trade was one in durable consumers goods say, only porcelain and...

Football pool D1

Footloose industry (L0) An industry locatable anywhere without incurring extra locational costs. Heavy industries, e.g. steel and shipbuilding, are not footloose new industries using microchip technology can locate in many places without increasing their costs, although proximity to large markets and the availability of regional subsidies will guide them to particular locations.


For newbuilding prices, shipbuilding costs are found to have the most significant effect for all ship types. Timecharter rates have an effect only on a few ship segments. This is in line with theory that newbuilding prices are cost driven, rather than market driven, as secondhand ship prices are. It is also found that actual exchange rates do not affect shipbuilding prices, but cost variations, due to exchange rate fluctuations, do. Orderbook (as a percentage of the fleet), used as a proxy for shipyard capacity, is found significant only for tankers, indicating that shipyards' expansion policy is aimed at high value ships like tankers rather than bulk carriers. Finally, newbuilding prices for some ship types may be driven, to a certain extent, by asset pricing and speculation.

Literature Review

The first researcher to analyse the cyclicality of the shipbuilding market was Tinbergen (1931). Tinbergen supported that the condition of the shipbuilding market is very much dependent on the amount of freight offered for shipping. The freight rate is then in its turn dependent on the shipping tonnage present in the market. This leads to an endogenous shipbuilding market cycle, which is caused by the time lag between the demand for shipping capacity and the actual availability of this capacity. In addition to this, he comments that there is also evidence of exogenous disruptions causing the cycle to act unpredictably at different periods of time. For Koopmans, the shipbuilding market is influenced by expectations concerning the degree of equilibrium between the transportation capacity of the world fleet and the aggregate demand for its services. The main reason behind this reliance on expectations is the time lag between ordering and delivery of new tonnage, since the market...


However, conceptually there are great differences between these kinds of physical capital stock calculations and modern methods of standardised capital stock estimation. A more recent estimate by Groote et al. followed the procedures of using perpetual inventory assumptions to calculate the capital stock accumulated in machinery and equipment and the total non-residential capital stock (buildings and civil engineering works). Data on gross fixed capital formation in buildings and civil engineering works were derived from data from the railway companies, electricity companies, and central government's construction of roads and telephone and telegraph networks. Livestock, increase in inventories, and work in progress were excluded to guarantee international comparability. For machinery, capital formation was estimated using a commodity-flow index, based on the domestic production ofmachinery, vehicles, and ships on the basis of the inputs of materials and the wage sum in the capital...

What sectors

Not only is the identity of a sector becoming cloudy, but determining its national location is also becoming more difficult if not impossible. As The Economist (1998) emphasizes, whole industries no longer migrate, as shipbuilding did from Europe to Asia in the 1970s manufacturing is becoming a genuinely international affair.

Summing Up

(ii) Allowing competition against the nationalised industries and enforcing financial discipline there would no doubt lead to more rapid closures of inefficient steelworks and pits by British Steel and the National Coal Board. It is possible, however, that some of this labour would be taken on by expanding private firms in those sectors. The postal side of the Post Office would certainly contract but the telecommunications side would expand. Consumers would benefit from lower prices for telephone calls and competition to provide more attractive and efficient telephone sets. British Rail and the aircraft and shipbuilding industries would contract more rapidly. Indeed, the size of the public sector generally would be reduced, but the shift in demand and resources to the private sector would lead to expansion there more or less across the board.


Another type of evidence which is very useful is the detailed documentation and chronology of Chinese technology in Needham's magnum opus on Chinese science and civilisation. Although it is weak in analysing the economic impact of invention, it is an invaluable help in assessing comparative development in agriculture, metallurgy, textile production, printing, shipbuilding, navigation etc. and in its assessment of Chinese capacity to develop the fundamentals of science.

Small firm L2

Limited in size, economics of scale do not exist (e.g. in craft industries) or larger firms prefer to subcontract out many operations (e.g. in Japanese shipbuilding). In the UK many incentives are offered to small firms as there is the belief that they are a major source of innovation and will be tomorrow's large employers.


British output of munitions in both world wars was prodigious and some retrenchment after each was inevitable. Nevertheless British arms industries benefited from orders that were as large as could be expected. The output of warships from Britain's shipyards was greater than that from those of the United States until the Second World War or the Soviet Union until the late 1940s, and was still the third largest in the world thereafter. The British aircraft industry was always one of the largest in the world, being only temporarily overtaken by Germany in the 1930s, and was still the largest in Western Europe in the 1960s. Army contracts were not large by international standards, except in wartime, and it is not surprising that the supply of munitions for sudden expansions of the army in 1914 and 1939 was problematic. Even so, the army was not neglected in the scientific-industrial-military complex, as witness Britain's capacity to compete internationally in the manufacture of tanks in...

Launching the Plan

At this point, Michnik, Kuron, and Geremek all advised Lipton and me that it was time for us to brief Lech Walesa. We got on a little plane a few days later to fly from Warsaw to Gdansk. Upon landing, we took a taxi to a nearly empty, cavernous building across the street from the famed Gdansk Shipyard, the place where Lech Walesa had jumped the wall in 1980 to start the revolution of freedom in Eastern Europe. We were led into Walesa's office. The walls were covered with pictures of Martin Luther King, Jr., and John and Robert Kennedy, and various proclamations and awards. Out of the window we could see the great anchor at the shipyard entrance. Walesa came in and we greeted him. He began abruptly. What are you doing here What do you want I said, Mr. Walesa, we're here to talk to you about the fact that Poland is slipping into hyperinflation. We have a plan for economic stabilization and reforms that we'd like to present. He immediately interrupted me. I didn't come here for an...

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