Creating value from uncertainty : a study of ocean transportation contracting
Name
62392015-MIT.pdf
Description
Full printable version
Size
9.51 MB
Format
Adobe PDF
Checksum (MD5)
f42721a888ed35ed366eec0f2a53de89
Author(s)
Pálsson, Sigurjón
Advisor(s)
Chris Caplice.
Date Issued
2005
Publisher
Massachusetts Institute of Technology
Abstract
How can financial tools like real options and hedging mitigate and create value from uncertainty in transportation? This paper describes these concepts and identifies research on them that has relevance to transportation. It then gives historical background of the containerized ocean transportation industry, uses Porter's five forces to explain its dynamics, and explains how contracts are set up and managed. It identifies areas within containerized ocean transportation that could benefit from real options and hedging, claiming that recent deregulation is creating opportunities for innovative thought. It gives examples of how real options are already being used in the industry to create flexibility without having any price attached to them and then comes up with new ideas of using them. It concludes by, first, stating that both shippers and carriers can benefit from managing uncertainty together and, second, suggesting future areas of research.
Description
Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2005.
Includes bibliographical references (leaves 80-83).
Subjects
Engineering Systems Division.
MIT Department
Massachusetts Institute of Technology. Engineering Systems Division
Terms of Use
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