Maritime Transportation Industry Essay Example | Topics and Well Written Essays - 1000 words

Maritime Transportation Industry - Essay Example However, the maritime transportation industry could be considered as having reached its peak and is now falling out of popularity due to the many problems and challenges the industry is now facing. These problems are listed and discussed in the following: Unlike trucks and planes, ships operate in a much more extreme environment. The ship, exposed to highly-corrosive and oxidative seawater, develops rust easily and can have its parts heavily damaged in just one delivery especially if it encountered storms during the trip. Compounding the problem is the incrustation of ship hulls, particularly the underside, by bacteria, algae and other sea organisms. Incrustations destroy paint making it easier for the metal of the ship to corrode. A heavy layer of organisms increases drag and leads to higher fuel costs. It can also cause accidents, impaired navigational ability and even the loss of the vessel. These are grave problems unique only to the maritime shipping industry which makes it more dangerous than other transportation method. (GAO, 2002) One big problem with the maritime transportation industry is that it is very sensitive to instabilities in the industry. In the 1980s, the changing pattern of international trade combined with rapid technological developments resulted in many structural and technological changes in the world shipping industry (Sussman, 2002). The fast rise and fall of other industries that were sources of job orders of the maritime industry meant that there could be a rapid decline or surge in seaborne trade. A decline could wreak havoc in the maritime transport industry because the maritime transport fleet is unable to respond quickly as existing tonnage cannot be easily redeployed and contractual obligations for the construction or order of additional ships cannot be easily removed without substantial financial penalties. This characteristic of maritime transport could lead to excess tonnage situations such as what happened in the 1970s when seaborne trade started to diminish, especially in the pe troleum trades. The result was that there was a severe imbalance between supply and demand which peaked in 1983 when surplus tonnage amounted to 28.5% of the world fleet. This means that when there is a decline in maritime trade, the maritime transport would easily suffer from huge losses incurred in contract obligations and fall out of the industry which creates a void in suppliers of the service. (Department of Transportation, 2007; Pedraja, 1994) 2.3 Restrictive Shipping Practices According to Donn (2006), unlike air and land transport of goods,

Starting A Business Essay Example | Topics and Well Written Essays - 750 words

Starting A Business - Essay Example Another source I can take advantage of is to borrow money from friends or relatives, who have more than sufficient cash and willing to lend.1 Aside from these sources, I can also borrow from the bank and utilize available credit lines that specifically meet my needs as a start-up entrepreneur. In addition to banks, there are other lending facilities such as investment companies and private lenders from where I can borrow money.2 Should money from these sources fall short, I can also use my credit card as an alternative. However, it should be noted that resorting to these borrowing institutions or facilities for capital requirement entails the payment of interest. This means that on top of the principal amount, I will have to pay the interest or cost of borrowing. Failure to service arising obligations from my borrowings in these institutions may result to piling interest, which can surge meteorically, thus, doubling the debt amount to be repaid. Such would have adverse effects not only on the financial position of the company but also the reputation in the market. I can also present my business plan to venture capitalists, who would be willing to share the burden of the risk by providing capital for the proposed business. In considering this option, I would still have to think about the terms and conditions of the capital provision of the venture capitalist. This is because such may result in me, the business owner, having less control over the operations of the company. Some venture capitalists prefer to have direct participation in running the business.3 In addition, I can seek funding from organizations that extend grants to deserving entrepreneurs. For example, I can apply for funding assistance from American Express Small Business Assistance that supports small businesses. There are also other government agencies that can be excellent sources of grants and loans for starting a business.4 Government Agencies and Regulations to Deal with Before I can start manufacturing and selling the Chunky Corn products, I would have to apply for licenses in the Food & Drug Administration (FDA), which provides voluntary pre-marketing consultations that would help examine if the biotechnology food, in this case the corn products, meet the regulatory standards for safety.5 In dealing with the FDA, I would have to ensure that the products I would be offering to the public conform to the Federal Food, Drug and Cosmetic Act. Under this regulation, the manufacturer, Chunky Corn, Inc., is legally responsible to produce these safe products under sanitary conditions. Furthermore, since my products are made from genetically engineered corns, my application may have to undergo special review by the FDA to find out if levels of toxicants in my food products are substantially higher than present in other edible varieties of same corn species.6 In terms of labeling, the company should adhere to labeling standards such that labels accurately describe the corn products by its common name and reveal important facts associated with the claims made. The labels should also be truthful and not misleading.7 Aside from licenses on the products, I would also have to deal with other government agencies for other aspects of the business. For example, I would have to deal with the local office of the Secretary of State for