CONFIDENTIAL

UNIVERSITI KUALA LUMPUR

Malaysian Institute of Marine Engineering Technology
FINAL EXAMINATION
JANUARY 2010 SESSION
SUBJECT CODE

LGB 41902

SUBJECT TITLE

MARITIME ECONOMICS & TRANSPORTATION

LEVEL

BACHELOR

TIME / DURATION

2.30PM 4.30PM / 2 HOURS

DATE

28 APRIL 2010

INSTRUCTIONS TO CANDIDATES

1.

Please read the instructions given in the question paper CAREFULLY.

2.

This question paper is printed on both sides of the paper.

3.

Please write your answers on the answer booklet provided.

4.

Answer should be written in blue or black ink except for sketching, graphic
and illustration.

5.

This question paper consists of TWO (2) sections; Section A and Section
B. Answer all questions in Section A' and THREE (3) questions only from
Section B.

6.

Answer all questions in English.

THERE ARE 3 PAGES OF QUESTIONS, EXCLUDING THIS PAGE.

JANUARY 2010

CONFIDENTIAL

SECTION A (Total: 40 marks)

INSTRUCTION: Answer ALL questions.

Please use the answer booklet provided.

Question 1

(a)

Explain the following terminologies.

i.

Bare boat charter

ii.

Flag State

iii.

Oligopoly

iv.

Opportunity Cost.
(10 marks)

(b)

Using suitable examples, define the meaning of bulk cargo.

(10 marks)

Question 2

(a)

There are several approaches in sourcing maritime transport to enable cargo

shippers with future commitment to maritime transport to spread their risk
accordingly. Two of the approaches are Contract of Affreightment and Voyage
Charter. Make comparison between the two approaches.
(10 marks)

(b)

In a free trade environment that does not favour business cartels, liner shipping
conferences begin to find many restrictions to their operations. Nevertheless, liner
shipping continues to prosper. Make comparison between a Liner Shipping
Conference and Liner Shipping.
(10 marks)

LGB41902 MARITIME ECONOMICS AND TRANSPORTATION

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SECTION B (Total: 60 marks)

INSTRUCTION: Answer only THREE questions.

Please use the answer booklet provided.

Question 3

Among the popular political issues in maritime transport are the Flags of Convenience, Flag
Discrimination, Cabotage Policy, Subsidies in shipbuilding and Anti-trust regulations on liner
conferences. Analyse any 2 (two) of the issues and discuss the advantages and
disadvantages to national economy.
(20 marks)

Question 4
As we progress into the 21st century, the strategy on which the shipowners determine the
choice of a seaport will be viewed against an overall logistics plan that considers cost, transit
time and other value added benefits that emerges from using such port. Explain 5 (five)
factors that may influence the shipowners choice of a seaport.
(20 marks)

Question 5

The economics of new tonnage and second hand tonnage form an important part of ship
management. Compare the benefits and setbacks of both approaches.
(20 marks)

LGB41902 MARITIME ECONOMICS AND TRANSPORTATION

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CONFIDENTIAL

Question 6

The capital investment necessary, both ashore and afloat, for a palletised and other general
cargo services is far less than that required for a containerised operation. Analyse why
containerised operation appears to have succeeded as compared to the palletised and
general cargo service.
(20 marks)

END OF QUESTION

LGB41902 MARITIME ECONOMICS AND TRANSPORTATION