Efficiency In Maritime Industry

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It is undeniable the fact that the world economy has been suffering due to the global recession. Although commercial companies are in decline because of the economic crisis and the tough competition they have to deal with, they have to accept the challenge and try to improve their efficiency and productivity even further. It is important to mention that with the term efficiency in a company, we do not refer only to its economic profit but to a broader spectrum deriving from it. More analytically, improvement in efficiency also means improvement in the time of producing a good or a service. Furthermore, efficiency is inextricably linked to quality. In other words, every decision that affects the operation of a business also affects the efficiency…show more content…
However, in order to improve efficiency we should check first how to evaluate it. One widely accepted method of evaluating efficiency is Data Envelopment Analysis (DEA) DEA has been used in the last decades in a great number of different industries with success. One of these industries is the maritime one. Maritime firms, as they face challenging competition, are forced indirectly to improve their efficiency continuously. By using updated data this paper has as a goal to analyze the efficiency of maritime industry. The second chapter introduces the term of efficiency in a company generally and more specifically in the maritime industry. The third chapter introduces and analyzes the Data Envelopment Analysis method. The fourth chapter show the data that we collected from the fifty leading maritime companies worldwide. The fifth chapter display the results of the DEA method for the fifty biggest maritime companies worldwide. The sixth chapter presents the methodology of Data Envelopment Analysis.…show more content…
Regarding the funding of a shipping company, this should be based on various forms mainly on loan or own funds. Depending on the financial conditions both ways could be proved effective for the company. The term capital cost has to do with the repayment either with installments or with other ways of the remaining capital used for a ship’s purchase. Taking into consideration all the above, it can be mentioned that all these factors in combination with an economic crisis can seriously affect the operational costs of a shipping company to a great extent. To conclude, it can be inferred that in order to achieve the maximum required financial outcome as well as the optimal efficiency of a shipping company the key to success is the reduction in operational costs. 2.2.3 Operational costs of shipping

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