Articulated Tug Barge Services Cargo Analysis

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Table of Contents

Introduction
Demand for fuel and propane
Competitors
Legal Requirements
An Overview finance issues
References

Introduction

Since I have five ATB’S vessels the most important business I will be able to do is to carry propane and fuel which is a flammable liquids. This business attracts few competitors in the market and the vessels are designed to carry these products safely. There are few firms in the market who carry the product therefore it is easier to succeed in carrying out this business. Propane and fuel are flammable product but there demand is high in the market and like other products which can be carried with these vessels. The American economy depends on fuel therefore the vessels delivering this products will have a field day.

These vessels are very important in transportation of fuel and propane as well as other flammable liquids. In recent times, flammable liquids transport through sea has grown at a rapid rate. The marine cargo transport has its own unique security challenges, but the most challenging is packing of flammable liquids. The major security issues associated with marine cargo transport include container insecurity, pilferage, jettison, piracy, leakage, and destruction of goods due to bad weather. Most of these challenges are solved by these new vessels which offer increased security challenges. Other vessels are vulnerable to security threats such as substitution of legal consignment by illegal and dangerous consignments (American Bureau of Shipping, 2005; Munoz, 1996).

The cost of maintaining security of the ship especially in international waters is very high due to wide ranging security threats. These vessels offer a solution, which can be applied in order to ensure security (Etkin, 1998). Moreover, the long process of marine transport poses various challenges. One of these challenges is usually the theft of the cargo, which can be due to weak security processes during the transit of the shipment or at the destination point. It also becomes a challenge to guarantee safety of the cargo when many trade intermediaries are involved in the process since it is very difficult to examine all of them (Creech and Ryan, 2003; Roberts and Libuser, 1993).

From the foregoing discussion, it is very clear that this vessels can be used in the next five or so years to transport inflammable liquids such as propane, fuel and others (Stana, 2005; Tenner, 1996).).

Demand for fuel and propane

Fuel products like gasoline, flows through vehicles through the filters and engine that keeps a car functioning. The economy of the world still depends heavily on the prices of fuel.. The market conditions were unbelievably deteriorated, partially because of geopolitical uncertainties and in addition stiff products from the market are furthering upward pressures prices of crude oil. Oil prices extensively contribute to joblessness. (Michel and Winslow, 1999)

At the centre of economic debate has also been the link between economic practices and the high oil prices. Early ground on the issue of this topic shows that oil price increases preceded most economic recession in the United States in the past. Furthermore, oil prices have an effect on production growth rate on industrial production. The impact of higher oil prices on economic growth would depend on a variety of factors, particularly how the windfall revenues are spent.

Competitors

The main competitors in this business of transportation of fuel and propane include Bp, Lukoil, Exxon and Mobil. These are the major competitors in south West America because the largest oil producers and transporters. However we shall not be scared of their large sizes we shall take the market by the storm but after we have complied with all the legal requirement of carrying these products. Terrorist organizations tend to target these industries of transporting flammable substances so that they can use them in criminal activities. This requires as carry the products with a lot of care. Very few companies have the capacity to transport and deliver propane (Badolato, 2000).

Legal Requirements

Goods carried by these vessels are flammable and their legal requirement that must be fulfilled to avoid being stolen by gangs and used for criminal activities or the safety of marine life. The regulative legislative measures resulted reduction of oil spillage into the ocean. This regulation mainly addresses issues of safety of the people as well as marine life. The rules, regulations, and restrictions on the transportation are very important to the society (U.S. Maritime Administration, 2004; Allan, 1993).

An Overview finance issues

The financials make for an overall very good reading of any company. This includes the amount that the company has earned in terms of Net profit. In addition to this another factor of concern for the company should be the amount of debt that it has taken up, although manageable at these levels of profit making, it will be very hard to sustain once the company has a bad patch. It would be advisable that the company use sources of financing other than direct debt to grow organically rather than on steroids. However in line with the positive future outlook of the company, it will be a worthwhile investment since it is expected that share prices are low right now, but it’s just a matter of time before the company kicks off well resulting in a upsurge in share prices.

References

Allan, R.G. (1993). “Methods for Preliminary Determination of Escort Tug Requirements,” Proceedings of RINA and NI International Conference on Escort Tugs, Design, Construction and Handling – The Way Ahead, London.

American Bureau of Shipping (2005). Rules for Building and Classing Steel Vessels. New York: American Bureau of Shipping.

Badolato, E. (2000). Cargo Security: High-Tech Protection, High-Tech Threats. Web.

Creech, J.A. & Ryan, J.F. (2003). “AIS: The Cornerstone of National Security?” Journal of Navigation, 56, 2003, 31-44.

Etkin, D.S. (1998). Financial Costs of Oil Spills in the United States, Cutter Information Corp.: Arlington, MA, 1998, 346 pp.

Michel, K. and Winslow, T. (1999). “Cargo Ship Bunker Tanks: Designing to Mitigate Oil Spillage,” Proceedings, SNAME Joint California Sections Meeting.

Munoz, T. (1996). West Coast Tanker Escort And Ship Assist Review. TM Marketing.

Roberts, K. & Libuser, C. (1993). “From Bhopal to Banking: Organizational Design can Mitigate Risk,” Organizational Dynamics, Spring 1993, 15-26.

Stana, R. M. (2005). Container Security: A Flexible Staffing Model and Minimum Equipment Requirements Would Improve Overseas Targeting and Inspection Efforts. Darby: DIANE Publishing.

Tenner, E. (1996). Why Things Bite Back: Technology and the Revenge of Unintended Consequences. New York: Alfred A. Knopf.

U.S. Maritime Administration (2004). Coastal Tank Barge Market, Maritime Administration, Washington DC, 2004.

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