Benefits for a Large Grain Company of Investing in Purchase of Own Vessels

Abstract

The purpose of this thesis was to determine whether the world’s largest grain export company should have its own fleet. Nowadays optimizing transportation costs is becoming more urgent with each passing day. This problem has arisen due to the fact that the shipping company’s current fleet is aging and grain is a specific cargo which has various restrictions and requirements for transportation. In this thesis two alternatives were considered namely chartering and using an own vessel. The advantages and disadvantages of the two options for the development of the company were reviewed. As a result it is more profitable for the company to purchase its own vessels.