PECON 22 University of Birmingham Impact of Covid19 on Global Shipping Article Questions actually all the instructions are cleared in the paper , and i wou

PECON 22 University of Birmingham Impact of Covid19 on Global Shipping Article Questions actually all the instructions are cleared in the paper , and i would like you to solve below each question . FINAL ASSESSMENT 2019 – 2020
Program
Year
Semester
Paper
Diploma in Logistics and
Transport Management
2
2
MAIN
MODULE NAME:
Maritime Economics
MODULE CODE:
TEACHER’S
NAME:
PECON. II.II
Dr. Adela P. Balasa
Questions to be answered on:
Space provided on the question paper
EXAM
DATE:
11 JUNE
2020
DURATION:
Allowed requirements
Pen, Pencil, Calculator,
Personal Computer, Mobile
Devices
Number of pages
6
Points of Attention:
•
•
•
•
•
•
•
•
•
For each question, the maximum earned points are mentioned between brackets at the end of each question.
Write very clearly! Answers that are not readable are not marked and do not get points!
Make sure your answers are written to the point.
All answers should be written in English.
Write all the answers in BLUE or BLACK pen only (NO PENCIL) OR TYPING
Answer written in PENCIL will not be marked.
Use the pencil/computer graphic/application only for diagrams, graphs & drawings.
Show all the calculation steps in the given space.
When finished, submit the question paper, together with the answer scripts and the signed cover page to the teacher through
the Moodle (E-Learning).
• All answer scripts must be submitted along with Academic Integrity form.
• Any cheating/copying may result in an instant failing of the examination.
FINAL MARKS
STUDENT NAME:
67
STUDENT ID:
10
Number of answer scripts: ………………………
Lecturer: ………….……………..
Student’s signature: ………………………………
Time of receipt: …………………..
(Diploma in Logistics Management, LTM) – Year 2 – TEST 1 – PECON. II.II – AY 2019 – 2020
Page | 1
DECLARATION OF ACADEMIC INTEGRITY
Form Title
Department
Form Code
Issue Date
Declaration of Academic Integrity
Academic Departments
IMCO/QMS/AD/FORM
17/01/2016
Please sign to confirm that you have read and accepted the following statements. Your assessment
will not be accepted without this signed declaration.
1. I confirm that I have read and fully understood IMCO’s policy on Academic Integrity, including
practices that may lead to committing plagiarism and which I must avoid.
2. I confirm that in the attached assessment I have not presented or attempted to present anyone else’s
work as my own, except where I have indicated. I confirm that I understand that doing so would mean I
had committed plagiarism.
3. I confirm that I understand that, if I fail to comply with IMCO’s policy on Academic Integrity, IMCO
will impose penalties which may in the most serious of cases result in termination of my studies at IMCO.
I confirm that I understand that if I am judged guilty of plagiarism I will receive a score of zero and the
other penalties indicated under IMCO’s policy on Academic Integrity in the Student’s Handbook will
apply.
4. I agree to IMCO submitting my work to Turn-it-in or using any other source to verify whether my
work contains plagiarised material.
The extent to which I have worked with others is as follows:
Programme: ………………………………………………………….
Module Code: …………………………………………………………….
Module Title: …………………………………………………………
Name: …………………………………………………………………
IMCO student ID number: …………………………….
Class: …………………………………………………….
Signature ………………………………………………..
Date: …………………
See the Student Handbook for IMCO’s policy on Academic Integrity and Plagiarism before you
sign.
(Diploma in Logistics Management, LTM) – Year 2 – TEST 1 – PECON. II.II – AY 2019 – 2020
Page | 2
For your information, please read carefully the assessment overview below.
The two articles provided below are extracted from the news letters reported by two reporters Chambers, S. (2020)
on his report titled “Tanker Analysts turn Bearish” and Berti, A. (2020), on his report titled “The impact of
Covid-19 on global shipping: part 1, system shock”. Please read and analyze carefully these newsletters and use
them as references to answer the assessment questions which follow. You can also use your past learning
experiences as an added value to answer the assessment questions effectively.
The article: Tanker analysts turn bearish
Chambers (2020) in his report titled “Tanker analysts turn bearish” reported that tanker analysts turn
bearish on prospects for a sector that has been surging for most of the year. According to Oslo-based
Cleave Securities, tanker earning fall due to slumping demand (low) for petroleum brought about by
the COVID-19 pandemic.
Chambers (2020) emphasized to his report that the Oslo-based Cleave Securities expects Petroleum
demand to slow down 16 million per barrel a day which is lower than December 2019. Oil demand
increases and oil price continue to decline that leads to a negative impact in the demand side Market.
Cleave Securities forecasted that the order book versus fleet is currently at its lowest level since and
contracting to stay depressed in the coming years that resulted into weak earnings in the supply side
market.
Chambers (2020) added to his newsletter an information reported by George Lazaridis, on which he
emphasized that the drop-in oil consumption brought about by COVID 19 linked lockdown around the
world could end up leaving a “much bigger scar” than what most are anticipating.
Chambers (2020) on his article reported by Lazaridis, explains that once the measure is taken back and
consumers return to normality, their spending pattern may well have forever changed. Further, he
added that More people may be tasked to work remotely from here and out, companies may seek to
shorten out supply chains and look for greater reliance in local resources so as to avert future
disruptions, while international travel could be curved as people come to terms with alternatives and
look to cut back on what may from now on be seen as unnecessary. The market landscape for crude oil
may well have shifted, while at the same time the wind fall for tankers may now be cut shorter than
expected (Chambers, 2020).
Source: Chambers, S. (2020).
(Diploma in Logistics Management, LTM) – Year 2 – TEST 1 – PECON. II.II – AY 2019 – 2020
Page | 3
Article: The impact of Covid-19 on global shipping: part 1, system shock
The main reason of the slump in demand for goods from China was due to the unprecedented spread
of the nCOVID-19 pandemic. COVID-19 hugely impacted the shipping markets in the highest level
worldwide having a ripple effect from container ships to oil tanker.
According to the report of Berti (2020) which was explained by Daejin Lee shutdowns and limited
activity further led to labour shortages across Chinese maritime segments, which in turn affected trade.
Daejin added that “exports from mainland China have dropped significantly in February 2020 as the
Purchasing Managers Index compiled by IHS Markit dropped from 51.1 in January to 40.3 in
February”.
Berti (2020) reported that according to the company’s Charter Rate assessment, Mid-February data
from market intelligence service Vessels Value showed a radical drop in demand for Chinese crude
tankers from an average of 3.4 billion tonne miles per day in 2019 to almost zero. He added to his
report that the daily cost of hiring a very large crude carrier (VLCC) for a year plummeted by over 20%
between 14 January and 14 February 2020. Spot earnings also decreased by more than 70%.
The COVID 19 contributed a global crisis for all sectors including shipping, which was hit by slowing
demand in goods’ production, exports and oil (Berti, 2020).
Berti (2020) wrote the report of Vessels Value chief operating officer Adrian Economakis stated that
“in terms of rate, the most significant affected have been the large crude tankers and the large bulkers.
Further he added that China is a significant importer of crude oil, usually through VLCCs, so the
reduction in economic activity in China is certainly having a negative demand effect for crude tankers.”
Berti (2020) stated that based on Economakis report, capesize was another heavily affected category,
which is in largely driven by China. He added to his report that “the problem with capesize is that the
market had been terrible and it’s gotten even worse, he therefore concluded that “it is effectively
reaching a five-year low at around just over $2,000 a day earnings, which means they’re losing a lot of
money per day.”
The container sector, another category that significantly relies on China, fell victim to the coronavirus
outbreak. “The container sector is naturally less liquid, but we have seen a reduction in rates and
values. Containers are the most closely linked to economic activities and economic activity is down all
around the world (Berti, 2020).
From the story of the COVID 19 there’s no doubt that the shipping industry hugely hurt by its impact
and even causing the rests of the world to slow down their relationship with China socially,
economically and even politically. There is only one thing that the world needs to realize that despite of
the COVID-19 pandemic which was started in Wuhan China during mid December 2019, the world is
still dependent on Chinese demand, exports, demand for raw materials, the exportation of finished
commodities to drive the cargo volumes and demands in the global levels.
Source: Berti, A. (2020)
(Diploma in Logistics Management, LTM) – Year 2 – TEST 1 – PECON. II.II – AY 2019 – 2020
Page | 4
Your Guideline to complete the process of your Assignment (Continuous Assessment – 5).
Assessment 1: Structured open-ended questions.
1.1. Describe the type of industry these two topics from the article related to. 100 words.
[20 marks]
(4 marks)
1.2. Analyse the economic and global environment brought about by COVID-19 pandemic which led to a
huge disruption in shipping business in the global levels. In this assessment question, focus only to the
most important content related on economic and global environment.
(16 marks)
Assessment 2: Application of economic concept.
[20 marks]
Analyse, read critically and effectively the 2 articles from the newsletter above and apply the following concepts
based on your own understanding and learning experiences. (You can answer this open-ended, however, be sure
that you relate your answers from the texts on the articles provided above).
2.1. Demand and supply
(5 mark)
2.2. Elasticity – particularly with respect to substitutes
(5 marks)
2.3. Costs of production
(5 marks)
2.4. Market structure
(5 marks)
Assessment task 3. (Synthesis)
[14 marks]
Discuss at least 2 global challenges for each of the following. 75 words each.
3.1. Tanker sector
(7 marks)
3.2. Shipping industry
(7 marks)
Assessment 4: Conclusion and Recommendation
[13 marks]
4.1. Write a short conclusion related to the two articles presented above.
(5 marks)
4.2. Write at least 2 recommendations for each of the challenges you identified from assessment task 3.
(8 marks)
-End of Questions & Good Luck-
(Diploma in Logistics Management, LTM) – Year 2 – TEST 1 – PECON. II.II – AY 2019 – 2020
Page | 5
Marking Criteria
Below is a marking descriptor to act as guideline for LTM students and teacher. It is adapted to LTM students
studying PECON. II.II in the diploma level.
Mark
5 (9.510)
4 (89.3)
Knowledge and
understanding of theories
and concepts
Application of
theories and
concepts
Analysis of
economics
problems and
issues
Evaluation of
economic
arguments and
evidence, making
informed judgment
Effective and
transferable
skills (Generic
skills)
Excellent
Excellent
Excellent
Excellent
Excellent
A comprehensive,
highly structured,
focused and concise,
response to the
assessment task,
consistently
demonstrating an
extensive and detailed
knowledge of the subject
matter.
A comprehensive,
highly structured,
focused and
concise, response
to the assessment
task, consistently
demonstrating a
highly developed
ability to apply
this knowledge to
the task set.
An exceptional
ability to
organize, analyze
issues clearly with
a high level of
critical analysis.
An exceptional
ability to present
arguments fluently
and clearly
supported by
evidence.
Very Good
Very Good
Very Good
Very Good
Exceptional
leadership and
contribution to
teams or
peers.
Demonstrates
academic/intel
lectual
originality,
imagination
and
professional
skills.
Very Good
A thorough and wellorganized response to
the assessment task,
demonstrating a broad
knowledge of the subject
matter.
A thorough and
well-organized
response to the
assessment task,
demonstrating
considerable
strength in
applying the
knowledge to the
task set.
Good
Substantial
engagement with
the assessment
task,
demonstrating a
well-developed
capacity to
analyze issues and
organize
materials.
Good
Substantial
engagement with
the assessment
task, presenting
arguments clearly
with wellsupported
evidence.
An adequate and
competent
response to the
assessment task,
demonstrating the
capacity to apply
knowledge
appropriately to
the task set.
An intellectually
competent and
factually sound
answer, with some
critical awareness
and analytical
qualities.
An intellectually
competent and
factually sound
answer with some
evidence of
capacity for
original and logical
thinking
Good
3 (77.9)
An adequate and
competent response to
the assessment task,
demonstrating adequate
but not complete
knowledge of the subject
matter.
Good
(Diploma in Logistics Management, LTM) – Year 2 – TEST 1 – PECON. II.II – AY 2019 – 2020
Provides an
exemplar of
leadership and
contribution
of teams.
Demonstrates
Academic/inte
llectual and
professional
skills.
Good
Good
intellectual
skills with
(team)
leadership and
professional
skills.
Page | 6
2 (66.9)
1 (15.9)
Satisfactory
Satisfactory
Satisfactory
Satisfactory
Satisfactory
A response to the
assessment task which
fails to meet the
minimum acceptable
standards yet
demonstrates major
deficiencies in structure,
relevance or focus
engaged with subject
matter.
A response to the
assessment task
which fails to
meet the minimum
acceptable
standards yet
demonstrates the
capacity to
complete only part
of the task.
A factually sound
answer with a
partially
successful, but not
entirely
acceptable,
attempt to
integrate factual
knowledge.
A factually sound
answer with a
partially
successful, but not
entirely acceptable,
attempt to develop
arguments.
Fails to achieve module
learning outcome
Fails to achieve
module learning
outcome
Fails to achieve
module learning
outcome
Fails to achieve
module learning
outcome
A response to the
assessment task,
which is
unacceptable, with
an answer which
in unacceptably
incomplete.
An unacceptable
level of
intellectual
engagement in the
assessment task,
with no analysis
or critical
awareness
displayed.
Weak
intellectual
skill and
difficulty with
expression
(communicati
on skills)
insecure
professional
skills.
Little
contribution to
teamwork.
Fails to
achieve
module
learning
outcome
A response to the
assessment task, which is
unacceptable, with a
display of some
knowledge of material
related to the question
posed with major
inaccuracies included in
answers.
An unacceptable
level of intellectual
engagement in the
assessment task,
with no
demonstrated
capacity for
original and logical
thinking.
(Diploma in Logistics Management, LTM) – Year 2 – TEST 1 – PECON. II.II – AY 2019 – 2020
Completely
unable to
work
autonomously.
Inadequate
input to teams
and very weak
academic/
intellectual
skills.
Page | 7
References:
Chambers, S. (2020). Tanker Analysts turn Bearish. [Online]. [Viewed 19-4-2020]. Available from:

Tanker analysts turn bearish

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PECON 22 University of Birmingham Impact of Covid19 on Global Shipping Article Questions actually all the instructions are cleared in the paper , and i wou

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Berti, A. (2020). The impact of Covid-19 on global shipping: part 1, system shock. [Online]. [Viewed 19-4-2020].
Available from: https://www.ship-technology.com/features/impact-of-covid-19-on-shipping/
(Diploma in Logistics Management, LTM) – Year 2 – TEST 1 – PECON. II.II – AY 2019 – 2020
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