THE PRICE DIFFERENTIATION STRATEGY FOR MULTI-SEGMENT MARKET: CASE STUDY IN AN INTERNATIONAL SHIPPING COMPANY

The global market gives opportunities to the shipping company to develop its business, such as the larger market, the addition of new routes, the broader port of destinations, and the development of services. It will give effect to the increase in the number of markets served. Generally, shipping companies have a multi-segment market and apply specific strategies for each segment. One is the pricing strategy. To be more focus on each segment and able to serve it best, the company should define the appropriate price (rate) policy for every market segment. A study has been carried out at PT X, an international shipping company at Surabaya. As a world-wide company PT X has shipping service to various ports of destination around the world. From observation it was known that the company applies different pricing strategies for each segment of its market, like contract rate, negotiated rate, market rate, etc. Each strategy has certain advantages for its market segment and the company determines specific requirements for this strategy. Through those strategies a multi-segment market could be served well in accordance with the characteristics of each segment. It will provide benefits for the company, such as establishment and maintenance of good and profitable relations with customers

Investment analysis: the increased value of selling LNG on spot instead of long-term contracts

Masteroppgave i Energy Management - Universitetet i Nordland, 201

Multi-Factor Model of Correlated Commodity - Forward Curves for Crude Oil and Shipping Markets

An arbitrage free multi-factor model is developed of the correlated forward curves of the crude oil, gasoline, heating oil and tanker shipping markets. Futures contracts trading on public exchanges are used as the primary underlying securities for the development of a multi-factor Gaussian Heath-Jarrow-Morton (HJM) model for the dynamic evolution of the correlated forward curves. An intra- and inter-commodity Principal Component Analysis (PCA) is carried out in order to isolate seasonality and identify a small number of independent factors driving each commodity market. The cross-commodity correlation of the factors is estimated by a two step PCA. The factor volatilities and cross-commodity factor correlations are studied in order to identify stable parametric models, heteroskedasticity and seasonality in the factor volatilities and correlations. The model leads to explicit stochastic differential equations governing the short term and long term factors driving the price of the spot commodity under the risk neutral measure. Risk premia are absent, consistently with HJM arbitrage free framework, as they are imbedded in the factor volatilities and correlations estimated by the PCA. The use of the model is described for the pricing of derivatives written on inter- and intra-commodity futures spreads, Asian options, the valuation and hedging of energy and shipping assets, the fuel efficient navigation of shipping fleets and use in corporate risk management.Massachusetts Institute of Technology. Center for Energy and Environmental Policy Researc

The role of information technology to facilitate the movement of containers: the experience of Yara North America and their container operation

Master's thesis Business Administration BE501 - University of Agder 2017Konfidensiell til / confidential until 01.01.202