ABSTRACT
Besides keeping themselves well informed at all times, a great deal of flexibility is required from companies and organizations engaged in shipping. Obviously the shipowning side is involved in buying and selling activity which proceeds parallel to the chartering side of shipping. Apart from the daily fluctuations in freight levels and other trading conditions depending on the supply-demand situation, there is a constant development towards new techniques in shipbuilding and propulsion, cargo handling and terminal operation. Irrespective of the freight market being very active or depressed, there are seasonal changes in volumes to be shipped and there are also variations in quantities of certain important commodities being bought or sold. In order to maintain maximum flexibility on both a daily and a long-term basis—and thereby stay safe and sound economically—owners have to renew their fleets at intervals. They have to operate the number, types and sizes of vessels necessary to meet the minimum requirements of their contract engagements.
