Shipping Industry

Run?

Shipping company

Run?

Remarks

When a “newly-built ship” is delivered to her owners.

Long; an increase in capital & potential production.

When a newly-built ship is added to company’s fleet.

Long (an increase in capital & in potential production).

A process ranging from 2 to 4 years, depending on he phase of the shipping cycle.

When ships are scrapped.

Short; permanent reduction in capital.

When firm’s ships are scrapped.

Short.

A permanent reduction in capital.

When ships are lost.

Short; (permanent reduction in capital).

When a company’s ship is lost.

Short (a permanent reduction in capital).

Due to a marine accident.

When ships are laid-up.

Short; temporary reduction in capital.

When ships are laid-up.

Short (a temporary reduction in capital).

When ships are sold.

No influence on industry’s capital.

When ships are sold.

Short

Change in firm’s capital

When ships are bought.

No influence on industry’s capital.

When ships are bought.

Short

Company’s capital increases

When ships get larger; a new engine is installed & new gears are fitted.

Short; influence on industry’s capital.

When ships get larger; a new engine is installed & new gears are fitted.

Short (permanent increase in capital).