Cost analysis of ship management in dry bulk shipping and an application

Maritime sector consists of four sub sectors as container, tanker, project and dry cargo. Ship management deals with big costs in terms of both investments and current managing costs so it requires a specific finance management that cost analysis is crucial for. Having similarities to other sub sectors, the dry cargo ship management has its own dynamics, both operationally and financially. In a worldwide trade volume of approximately 100 million tons, the freight index is very low due to the intense competition especially starting with the 2008 economic crisis. This situation increases the need fora sophisticated cost management. Although cost management in the sector continues in a traditional way, companies are experiencing serious losses due to the lack of cost management. Previous studies have emphasised on ship management cost analysis, but there is no specific study for dry cargo. In this respect, this study aims to contribute to the lack of cost analysis in the dry cargo sector. The study consists of three main parts: the analysis of dry cargo and freight contracts, the examination of the costs of ship managers in dry cargo sector and applying the cost analysis to a ship managing company working voyage basis.