Profitability analysis of shipping firms
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Keywords
Shipping ; Shipping profitability ; Financial performance in shipping ; Shipping management ; Market cyclesAbstract
The answer is constructed by carrying out an extensive literature review on relevant theoretical and empirical works from different fields, which also examines the concept of shipping company profitability from economic, managerial, and financial perspectives. Profitability is seen as a rather multidimensional phenomenon influenced by business cycles, regulatory changes, technological innovations, and strategic decisions at the firm level. The theoretical part summarizes the main approaches to market analysis in shipping and determinants of company profitability. Some structural features of the industry were referenced—high cyclicality with international trade flows and ever-changing freight rates making stable profits a highly improbable target for most firms within this particular industry. Discussion was also provided on two main financial ratios (EBITDA/ROA/ROE) used not only in assessing comparative performance but also overall financial health in shipping companies. Fleet and service diversification, mergers and acquisitions, as well as digitalization were strategies to improve profitability. It elaborated on the efficiency margins that can be secured through technology, artificial intelligence, big data and management insight combined with organizational adaptability. Green transition (decarbonisation) and increasing regulatory pressure is the main challenge of the next decade on cost structure as well as in access to finance. Profitability is not a static outcome but a dynamic process of continuous balancing of risk, innovation and compliance. Future success for shipping businesses will depend on how well companies combine technological progress with environmental responsibility and flexibility in dealing with uncertainty. This last part shall present the perceived future orientations of research while insisting on an interdisciplinary approach and deep relation between sustainability, innovation, and economic performance in today's shipping industry.
Postgraduate Studies Programme
Shipping ManagementDepartment
Σχολή Ναυτιλίας και Βιομηχανίας. Τμήμα Ναυτιλιακών ΣπουδώνNumber of pages
51Language
EnglishCollections
Except where otherwise noted, this item's license is described as
Αναφορά Δημιουργού-Μη Εμπορική Χρήση-Όχι Παράγωγα Έργα 3.0 Ελλάδα
Αναφορά Δημιουργού-Μη Εμπορική Χρήση-Όχι Παράγωγα Έργα 3.0 Ελλάδα