ABSTRACT
The leading edge of a shipping crisis can be found in the dynamics of the global economy. Good asset play can mean prospering in shipping, while bad asset play can wipe out the investment. In supply-chain management, the term 'bullwhip effect' is frequently used to illustrate the gap between the demand required and the supply provided. For practical purposes, the value of a ship is usually the market price for a potential buyer or seller. As far as the hedging prices of buyers and sellers of a derivative product matches, it is broadly a fair deal. The perception and collective action of the crowds can accelerate a market decline, leading to a market crash. According to the 'wisdom of crowds,' the decisions of the masses are more accurate than those of a single individual—but only insomuch as people who compose the crowd are diverse and independent of one another.
