Question

Analyze the situation in the "Chace Shipping" case study reading for this unit. Make your recommendations for how William Chace should respond to the opportunities to bid on contracts for his ship, Glory. Specify a range of options, including which options would be suitable if Mr. Chace wishes to: Minimize the risk of loss. Maximize the chance of profit. Pursue the largest expected return. Support your recommendations with detailed analyses presented in a Word document. Paste your graphs, tables, or Excel output directly into the Word document. Insert your analysis materials throughout the body of your report, or provide the information in clearly referenced appendices.

Answer 1

Chace Shipping

Chace shipping compny was formed by William Chace to carry fuel to US forces. This company used to send fuels in T2 tankers. The Glory was the 4^th T2 tanker and a freighter. But it was becoming old and there had to be something which was needed to be done for minimizing the loss and maximising the profit.

Some of the important features which is needed to be considered are as follows:

1. The only freighter left in the company was the Glory.
2. The life span of Glory was not more than 5 years.
3. The transportation expenses of Glory was very high.
4. The capacity of Glory was limited and since it was becoming old the capabilities were also becoming less.
5. Some other factors which were important while working with Glory were tariff and taxes.

The options that the shipping company had in their hands were:

1. To keep Glory usable for more days grains were needed to be transported under the contract of

international grain company.

2. Under the contract of Syrian trade commission, steel was to be transported to Syria.