Course Information Package

Course Unit TitleBANKING AND FINANCE
Course Unit CodeDLITSM513
Course Unit DetailsMA/LLM Maritime Law and Shipping Management (DL) (Specialisation Electives) - MSc International Trade and Shipping Management (DL) (Electives Courses) -
Number of ECTS credits allocated6
Learning Outcomes of the course unitBy the end of the course, the students should be able to:
  1. Identify and understand the various types of risks involved in international banking such as credit risk, market risk, operational risk, country risk, exchange risk, etc.
  2. Present an overview of the institutional characteristics of the banking system and appreciate the need of financial intermediation in the shipping markets.
  3. Evaluate alternative means of shipping finance including debt provisions, syndicated loans, private equity, bridge financing, etc.
  4. Develop working knowledge of capital budgeting/project appraisal techniques applied to shipping finance scenarios
  5. Investigate the main methods of financing vessels, either new built or secondhand, and also the financing in the shipping industry in general such as I.P.O, corporate bonds and other.
  6. Identify shipping finance risks including interest rate risk, foreign currency risk and freight rate risk and the financial instruments used to counter these risks.
Mode of DeliveryFace-to-face
PrerequisitesNONECo-requisitesNONE
Recommended optional program componentsNONE
Course Contents
Chartering:
Role of brokers and intermediaries
Vessel description, Chartering and trading terminology.
Voyage, time, bare boat and tanker chartering.
Contracts of affreightment.
Disputes and arbitration.
 
Voyage estimates:
Calculating cargo capacity and voyage time.
Estimating time in port.
Bunker calculations.
Dry cargo and tanker voyage estimates and voyage results.
Other voyage costs.
 
Laytime Calculations:
Role of agents and statements of facts.
Time counting and stoppages.
Voyage completion.
Laytime statements: demurrage/dispatch.
 
Sale & Purchase:
Negotiation procedures and model contracts.
Role of surveyors and Classification societies.
Spares, BOB, LOB, supplies and provisions.
Taking delivery.
Auctions and Disputes.
 
General
Financial Planning.
Communications and IT in the maritime industry.
Issues of liner shipping.
Issues in passenger shipping.
Shipping markets and shipping cycles.
Dry bulk, container and tanker markets.
Short sea shipping.
Scrapping.
EU Transport Policy. Paris MOU. World Trade.
Recommended and/or required reading:
Textbooks
  • Maritime Economics, Martin Stopford, 3rd edition
  • Principles of Corporate Finance, Brealey, Myers and Allen
  • Shipping Finance, Stephenson Harwood
  • Derivatives and Risk Management in Shipping, Manolis G Kavussanos and Ilias D Visvikis
  • Money, Banking and Financial Markets – Global Edition, Stephen G. Cecchetti and Kermit L. Schoenholtz, 4th edition
  • Global Investment Risk Management: Protecting International Portfolios Against Currency, Interest Rate, Equity and Commodity Risk, Ezra Zask
References
    Planned learning activities and teaching methods
    The intended use of this module is such that you progress through from unit 1 to unit 10 in unit order. The module is designed to introduce and explain the material you are expected to learn. All the readings from the recommended textbooks associated with a specific unit, will be clearly stated. Furthermore, any relevant readings associated with a particular topic will be stated at various points within the unit, wherever appropriate. It is worth noting that all readings provide a good source of additional examples on which you can practice if you so wish.
    The on-line learning environment provides an opportunity for receiving on-line feedback from the Module Instructors during your study and you are strongly advised to take advantage of this. In addition, you will be encourages to interact both with other students and your instructor so as you feel part of an on-line community of learners that belong to the University network.

    Recorded lectures/ Narrated presentations

    You may be asked to watch a recorded lecture or narrated presentation posted on the web addressing the main concepts of a particular unit.

    Dynamic Online Interaction: 

     • Asynchronous communication tool (Discussion Forum)
    You may be asked to participate, wherever appropriate, in an online forum posting your views on certain topics covered in a particular unit.  
     • Synchronous communication tool (instant messaging)
    Using the synchronous communication tools (such as, skype, chat rooms, video-conferencing, etc.), you may discuss with the Module Instructor (s) and/or other students on line with reference to specific issues covered in a given unit.

    Self-assessment:

    Throughout the Study Guide, you will find a various forms of assessment/ self-assessment as follows: 

     - Online multiple choices questions on the topics covered. 
     - Online review questions designed to provoke thought/ action and reflection on the topics covered in each unit and their applicability in real life.
     - Online numerical exercises that require computational work designed to check that you can correctly apply a technique or method covered in a specific unit.
    -Discussion forum participation based on recommended articles and the questions offered for dynamic online interaction.
     - Instant messaging participation.
     - Further readings beyond those already recommended in this Guide.

    Assessment methods and criteria
    Participation Activities 10%
    Two marked online assignments 20%
    One Group project-online 20%
    Final Exam50%
    Language of instructionEnglish
    Work placement(s)NO