LOG353e Ocean Freight Management Assignment 2 - Group-Based Assignment January 2017 PresentationLOG353e Assignment 2 SIM UNIVERSITY Assignment 2 – Page 2 of 4 Group-Based Assignment This assignment is worth 30% of the final mark for LOG353e Ocean Freight Management. The cut-off date for this assignment is 1 March 2017, 2355 hours. This is a group-based assignment. You should form a group of 3 members from your seminar group. Each group is required to upload a single report to Canvas via your respective seminar group. Please elect a group leader. The responsibility of the group leader is to upload the report on behalf of the group. It is important for each group member to contribute substantially to the final submitted work. All group members are equally responsible for the entire submitted assignment. If you feel that the work distribution is inequitable to either yourself or your group mates, please highlight this to your instructor as soon as possible. Your instructor will then investigate and decide on any action that needs to be taken. It is not necessary for all group members to be awarded the same mark. ___________________________________________________________________________ Important Note: Grading of GBA Submissions Marks awarded to your assignment are based on the following guidelines: 1. 80% of the marks are allocated to the content of your answers:  The marks awarded to what your answers cover depend on the extent to which they cover the key points that correctly and comprehensively address each question.  The key points should be supported by evidence drawn from course materials and, wherever relevant, from other credible sources. 2. 20% of the marks are allocated to the presentation of your answers: Wherever applicable, the marks awarded to how your answers are presented depend on the extent to which your answers:  form a sound reasoning by developing those key points in a clear, logical and succinct manner;  provide proper and adequate in-text citations and referencing to content drawn from course materials and other credible sources;  strictly follow APA formatting and style guidelines, in particular for: o in-text citations and end-of-report references; o the identification of figures and tables; [You can find a short tutorial on the APA formatting and style guidelines here: https://is.gd/mgEOnC. Additional details (pertaining to tables and figures) can be found here: https://is.gd/O4vDdT.]LOG353e Assignment 2 SIM UNIVERSITY Assignment 2 – Page 3 of 4  use, wherever relevant, the specialised vocabulary and terminology commonly used in discussions about the topic(s) covered by each question;  provide a reference or bibliography at the end of the main report;  include the less relevant details in an Appendix;  use sentence constructions that are grammatically and syntactically correct;  are free from spelling mistakes; present the workings, numerical formulations and results in a logical manner that follows the APA formatting and style guidelines;  design and present graphs, diagrams and plots that follow the APA formatting and style guidelines;  are highly original;  have proper formatting, which may: o include a properly formatted cover page; o respect the answer length/word count set out in the assignment guidelines, if any is prescribed; o present answers in paragraphs with proper spacing and page margins; o include page numbers and appendices, if necessary. __________________________________________________________________________ In this assignment, you are assessed on learning outcomes related to knowledge and understanding as well as on key skills such as:  Relate the strategies and techniques in ocean freight management to the work environment.  Develop the essential knowledge and interpersonal skills to work effectively in a team.  Demonstrate written proficiency. _________________________________________________________________________________________LOG353e Assignment 2 SIM UNIVERSITY Assignment 2 – Page 4 of 4 Question 1 Hanjin Shipping was the sixth largest container shipping line in the world and a key member of the CKYHE Alliance when it filed for bankruptcy protection on 31 August 20161. The alliance, made up exclusively of Asian carriers - Evergreen, COSCO, Hanjin, Yang Ming and K Line - was able to match the 2M alliance of Maersk and MSC in terms of shipping capacity and network reach. Nonetheless, after several months of trying to secure liquidity and restructure the company's debt, Hanjin Shipping collapsed and stopped accepting new cargo. Hanjin's vessels were subsequently arrested worldwide and ports are refusing to work on their ships in view that they might not be compensated. The move also triggered a mad scramble by cargo owners to locate and obtain control of their containers. This is the largest container shipping bankruptcy to date and the consequences are still being felt throughout the transportation sector and international supply chains. (a) Many of the largest container shipping lines in the world belong to a shipping alliance. In the case of Hapag-Lloyd, it is a major member of The Alliance. Suppose you are the fleet manager of Hapag-Lloyd's fleet of container ships. Examine the benefits of remaining in The Alliance and support your answer with sound reasoning. (20 marks) (b) What are the disadvantages of remaining in The Alliance? Relate your assessment with illustrations based on information on the container shipping industry. (20 marks) (c) You need to boost the profitability of the company in view of the current shipping market cycle. Plan for effective operations by recommending feasible strategies for Hapag-Lloyd. (30 marks) (d) Following from question 1(c), the container shipping market is experiencing a down cycle with can be attributed to the slowing down of the Chinese economy. Specifically, a key challenge facing the shipping industry is the slowdown of China's economic growth. While China has seen phenomenal growth in the 1990s and 2000s, the latest forecasts by the International Monetary Fund (IMF) showed that economic growth in the country is expected to slow significantly in the coming years. Show the relationship between China's economic (GDP) growth and the demand for shipping transport over the past three decades. Provide supporting evidence to characterise this relationship. (30 marks) ---- END OF ASSIGNMENT ---- 1 Source: The Guardian (2 September 2016) "Hanjin Shipping bankruptcy causes turmoil in global sea freight".