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Ocean Carriers

Harvard Business School Case 202-029
Case Software 202-702
Copyright © 2001 by the President and Fellows of Harvard College
This case was prepared as the basis for class discussion rather than to
illustrate either effective or ineffective handling of an administrative situation.

Exhibit 1 Capital Expenditures Anticipated in Preparation for Special Surveys 2007 2012 2017 2022 2027 300.000 .000 1.000 350.250.000 850.000 750.

Exhibit 3 Current order book for dry bulk capesizes by delivery date 2001 Number of vessels 2002 63 2003 33 2004 21 9 .

75 0.15 .Exhibit 4 Daily Hire Rate Adjustment Factor for Dry Bulk Capesizes Based on Age of Vessel Over 24 years 20 to 24 years 15 to 19 years 10 to 14 years 0.8 1 5 to 9 years Under 5 years 1.05 1.65 0.

427 $22.079 $16.575 Avg.794 $10.344 .851 $20.063 $13.076 $12.250 $18.544 $14.730 $14.105 $9.Exhibit 5 Worldwide Iron Ore Vessel Shipments. 3-yr charter rate $18. Fleet Size and Average Daily Hire Rates for Capesize Charters.626 $15. spot rate $16. 1994-2001 1994 1995 1996 1997 1998 1999 2000 Iron ore vessel shipments 375 397 385 424 420 410 440 Fleet size NA NA NA 540 523 523 552 Avg.149 $11.

apesize Charters. 1994-2001 2001E 436 612 .

50% 1.50% 1.50% 1.00% 2.344 14.50% 1.222 20.50% 1.273 16.50% 1.50% 1.072 15.088 16.318 19.540 19.50% 1.841 17.50% 1.50% 1.454 18.455 20.Exhibit 6 Forecasted Daily Time Charter Rates for New Capesize Vessel Age of Ship 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Iron Ore Shipments Event Year Calendar Year (Millions of Tons) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 440 436 445 454 463 472 479 486 493 501 508 516 524 532 540 548 556 564 573 581 590 599 608 617 626 636 645 655 % Growth 7.50% 1.832 18.00% 2.765 19.50% 1.460 16.098 19.30% -0.690 .650 16.50% 1.50% 1.50% 1.00% 1.50% 1.992 20.90% 2.629 17.50% 1.667 18.747 15.037 18.50% 1.231 17.245 18.50% 1.50% 1.50% Avg Daily Charter Rate 15.00% 2.403 15.035 17.742 16.881 19.50% 1.429 17.

036 18.05 1.20% 1.% Growth 21.20% 2.428 17.20% Adjustment Factor for Hire Rate 1.993 15.762 14.20% 1.20% 1.400 18.20% 1.283 17.278 15.20% 1.00 1.932 15.00 1.15 1.104 15.886 18.05 1.278 15.243 14.481 17.932 15.092 17.75 0.283 17.428 17.80 0.15 1.15 1.831 18.20% 1.682 17.481 17.714 17.454 14.00 1.092 17.036 18.20% 1.50% -3.714 17.80 0.05 1.762 14.00 0.20% 2.20% 1.103 18.90% 2.20% 1.20% 1.20% 1.20% 1.823 14.20% 1.654 14.20% 1.448 Expected Daily Hire Rate 20.823 14.993 15.80 0.75 0.501 18.886 18.200 20.00 1.75 0.000 20.448 .20% 2.80 0.628 17.05 1.20% 1.341 13.713 18.20% 1.20% 1.05 1.341 13.75 0.20% 1.628 17.20% 1.831 18.80 0.243 14.20% 1.166 15.654 14.454 14.682 17.20% 1.166 15.15 1.65 Adjusted Daily Hire Rate 17.20% 1.75 0.104 15.