Workshops

SNAME Annual Meeting, Houston, 2005

The decline in the Jones Act product carrier fleet is a matter of concern.  Why is it that, when Americans are consuming ever-increasing quantities of refined products, the demand for ships to move products from refining centers to the market appears to be declining?  Can this trend be reversed?

(1)   Demand and Supply: What are the historical geographic patterns of production and consumption of refined products?  What are the projected future trends?  How have refined products been distributed in the past?  How extensive is the use of pipelines, rail, inland water, etc?  How have the methods used changed over the years?  What other techniques are used that reduce the need for coastal transportation, such as product swaps, imports?  What drives these trends?  What are the forecasts?

(2)   Technology: What technological changes have we seen in this industry in recent years and what might we expect in the years ahead?  How can technology make shipping more attractive?  Larger and/or faster ships and/or ATBs?  Improved cargo-handling technology?  Other? 

(3)   The Future: What would need to be done to bring about an increase in demand for shipping as a means of distribution of refined products?  Lower capital costs?  Lower operating costs?  Lower cost per barrel delivered?  Is the ATB really more efficient than the self-propelled tanker?  What could or should the industry be doing?

In conjunction with the San Francisco Water Transit Authority, October 21, 2003

Following the SNAME Annual Meeting and WMTC in San Francisco, the Maritime Economics panel worked with the San Francisco Water Transit Authority to host the Ferry Schmooze, a round-table workshop conference designed as an opportunity to bring together divergent perspectives on ferry design and operations in an informal environment.  The schmooze featured both presentations and open discussions.

SNAME Annual Meeting, Orlando, 2001

A business, acting rationally, will implement a new technology or expand to serve a potential emerging market only if it makes commercial business sense.  The business must make probing inquiries into the operation of the relevant market, the likely effect on that market of introducing a new technology or a new service, and the costs of acquiring and operating the new technology or service.  Economics can assist in virtually every stage of this process, helping to guide the business in deciding whether the planned venture will be profitable, and providing tools to assist the business in selecting the optimal mix of vessels and services to offer to the market.  This session illustrated some of the ways in which maritime economics relates to new technologies in potential emerging markets.  That is, the session showed how the analysis of market demand is vital to economic decision making, presented some of the tools that can be used to perform economic analysis, and illustrated how exogenous factors can affect the success of the new technology in a profound way.  Presentations and interactive discussions explored the techniques used in analyzing a variety of potential markets and touched upon some of the shortcomings of traditional analyses in capturing the dynamics associated with introducing new technologies to serve emerging markets.

Papers were presented in the following thematic areas:

• Post-Panamax Shipping and the Hub and Spoke Network
• New Cargo-Handling Technologies and Facilities Requirements
• New Perspectives on the Regulation of Liner Shipping
• Mergers and Alliances: Structuring for Successful Containership Operations

Developed by members of Panel O-36 for use in business school curricula, 1998

This case study concerns the sale of Navieras, or the Puerto Rico Maritime Shipping Authority, which had been created in 1974 when the Commonwealth of Puerto Rico acquired assets from Sea-Land Services, Inc., Seatrain Lines, Inc., and Transamerica Trailer Transport, Inc. including: ships, terminals, rolling stock, and other equipment.  Owing to the large accumulated deficit associated with the operation, the government of Puerto Rico sought to privatize Navieras in 1993.  The case study works through subsequent stages in the divestiture while teaching fundamental fnancial and economic lessons.  Please see the panel chair for further information.

In conjunction with the International Association of Maritime Economists, Washington, June 12, 1997

This workshop addressed the economics associated with emerging technology for fast cargo ships.  A number of technological advances were proposed for insertion into the liner industry through proposals to establish high speed services on the East-West trades.  A number of the proposals glossed over market dynamics and issues vital to economic viability.  After reviewing ship technology in the context of the total origin-to-destination transportation system, the workshop explored market structure and demand, including the interrelation between the markets for international movement by sea and air and the potential for producing “value added” for a certain set of customers. The workshop also discussed the economic viability of such a service in terms of: (1) necessary investments in ships, infrastructure and peripherals; (2) cargo collection and distribution; (3) capital and operating costs; and (4) assessment of risk.

In conjunction with the Transportation Section of the Federal Bar Association, Washington, April 25, 1996

The conference addressed a series of diverse topics: Containership Utilization; Port Operations Efficiency; the Movement of Cargo; the Use of GPS; The Application of CERCLA to Ocean Shipping; and a final open forum where any topic pertinent to the subject of the conference was open to discussion.

In conjunction with SNAME's Cargo Handling and Sealift Panels, Washington, October 25, 1994

The workshop focused on the prospects for using commercial ships operating in commercial trade, perhaps with quick modifications, to carry military sealift cargoes.  The emphasis was on examining the military utility of ships that would be well-suited to their commercial uses and probably less suited – but at least adequate – for military applications.  By contrast, some earlier efforts began with the military requirements and then tried to define the characteristics of a “commercial” ship that would meet them.  These efforts invariably resulted in a set of ship characteristics having a superficial plausibility but lacking genuine suitability for commercial operation on real trade routes.  To avoid the pitfalls of earlier efforts, the workshop was structured to examine commercial requirements, military requirements, and the linkage between these two sets of requirements. With the competing sets of requirements firmly established, the workshop then probed issues of economic and operational viability.

Washington, January 27, 1994

The workshop examined the markets for ferries and the potential for using high speed vessels in domestic ferry applications. Through a discussion of the practical economics associated with ferry systems and the benefits and limits of new technologies, participants discussed the circumstances under which these new technologies could be made commercially viable in the United States.