MSc International Shipping and Finance

Applications are now open for Sep 2016

More than 90% of our MSc ISF 2014 graduates are in work or further education 6 months after graduation 

A truly unique Masters programme

Download the Masters in Shipping borchure

  • Study at Henley Business School, among the top 1% of triple-accredited business schools in the world, ranked among the top 5 in the UK. 
  • Gain from being part of the highly reputable ICMA Centre, ranked among the top 30 schools in the world for its finance Masters.
  • Spend one month at ALBA, a leading European Business School specialising in shipping and management education, based in Greece, a country with a long-standing tradition in shipping and the largest merchant fleet in the world.
  • Be awarded two full time MSc degrees in International Shipping and Finance, one from each institution (Dual Degree Award)
  • Utilise our links with leading companies in the shipping industry and gain access to work-experience placement opportunities.
  • Experience world-class student facilities and a practice-centred delivery approach including specialised workshops, distinguished guest speakers, bespoke simulations and company visits.
  • Be taught by world renowned academic faculty and industry practitioners.
  • Benefit from an in-house careers development programme and our partnership with Spinnaker Global, the leading shipping recruitment consultancy.
  • Be granted professional exam exemptions from the Institute of Chartered Shipbrokers (ICS)

Meeting the needs of a fast-paced industry

The primary aim of the MSc in International Shipping and Finance (ISF) is to address the educational needs of the rapidly evolving, highly competitive and capital intensive shipping industry, by bridging the gap between academic theory and business practice.

Picture of a ship on the Thames

The programme is designed to provide a unique educational experience that combines research-led, technically advanced teaching by world-renowned academic faculty and senior industry practitioners. The shipping industry itself is highly involved in shaping its structure and contributing to its delivery as well as the career development of its participants. The delivery of this programme is based on a practice centred, hands-on approach. The ultimate objective is to ensure that graduates are equipped with the knowledge, technical expertise and skills required by major employers in the sector.

You will gain an in-depth understanding of how the shipping and financial markets interact and complement each other. You will specialise in the analysis of  shipping markets and cycles, maritime trade patterns and commodities carried by sea, chartering and ship-broking practices, maritime logistics systems, legal aspects in shipping, the selection of alternative shipping finance and investment methods as well as the development, implementation and appraisal of shipping related risk management strategies. You will also gain exposure to securities trading, corporate transactions, valuation,  investment strategies and quantitative techniques.

You will benefit from:

      • Distinguished professors and guest speakers
      • Specialised master-classes and workshops delivered by select senior practitioners
      • Hands-on sessions and bespoke simulations
      • Company visits and field trips
      • Careers development programme and networking events
      • Work placement opportunities available to outstanding graduates

Programme structure

This degree is only available on a full-time basis on both, a 9 and a 12  months duration. Students will be resident and under take full-time study in the UK and Athens, Greece. Students take compulsory and elective modules in Parts 1 and 2. Under the 12-months programme students take additional electives in Part 3.

October – December:   Part 1 – ICMA Centre, Henley Business School, UK
January – March: Part 2 – ICMA Centre, Henley Business School, UK
March – April: Part 2 – ALBA Business School, Athens, Greece
June – August (12 months proogramme only): Part 3 – ICMA Centre, Henley Business School, UK

You will have the opportunity to spend 1 month in Greece, home to over 700 shipping companies controlling more than 16% of merchant fleet world wide. During your time at our partner institution, ALBA,  you will attend specialised shipping courses and workshops and participate in other activities such as visits to shipping companies and the COSCO terminal at the port of Piraeus, accompanied by information sessions from shipping practitioners.

Dual degree award

Successful graduates will be awarded two full time MSc degrees in International Shipping and Finance, one from each institution.

Facebook page

Join our MSc International Shipping and Finance page on Facebook and keep up-to-date with the latest on the programme as well as shipping industry and education related news.

Scholarships

Scholarships of up to 50% towards tuition fees are available to EU/UK/Norwegian candidates. To qualify you would need a minimum 2:1 or equivalent from an overseas institution. Scholarships of up to £5,000 towards tuition fees are available to all other candidates. In the past scholarships have been awarded to applicants with outstanding academic achievements and/or relevant work experience. To discuss your individual circumstances with regards to scholarships and express your interest please email the MSc ISF programme assistant Mr Satya Sahoo s.r.sahoo@pgr.icmacentre.ac.uk

Contact

For admissions information please contact: admissions@icmacentre.ac.uk

For general information about the programme you can contact the MSc ISF team on isf@icmacentre.ac.uk or the Director of Shipping programmes Dr George Alexandridis

 

Entry Requirements

Entry requirements

Undergraduate Degree
Minimum 2:1 or the equivalent from an overseas institution*.
Degree Discipline
Any discipline – no quantitative requirement.
GMAT
No requirement.

* Please note that due to increasing competition for places on our Masters programmes our entry requirements may change.

We operate a rolling admissions system and you are therefore advised to apply early in order to be sure of your place on our programmes. We experience high levels of demand, and it is possible we might have to close applications to some programmes once places are filled.

English requirements

If English is not your first language, you may be required to take one of the following:

TOEFL (Test of English as a foreign language): Overall score of 100 with no less than 20 in Listening, Writing and Reading and 21 in Speaking

IELTS (British Council International English Language Test): Score of 6.5 overall with no component less than 6 when attending the 6-week pre-sessional English course offered by the University of Reading. Entry to this pre-sessional course with a score of 6.5 fulfils your English language requirement.

Please note that students not attending a Pre-Sessional course will need to pass IELTS with an overall score of 7 and no component less than 6.0. For more options please see the International Study and Language Website or email a member of the Postgraduate Admissions team.

Contact

For any additional information about admissions you may contact: admissions@icmacentre.ac.uk

Fees

Fees

Full-time
MSc International Shipping and Finance2016-17 £21,900

Fees are the same for both EU and overseas students. Please note there is a one-off £30 application fee (one charge regardless of how many courses you apply for). You can pay this by credit/debit card at this link (please contact us if you require details of alternative payment methods).

Living expenses are in addition to the above fees. Overseas full-time participants can expect to spend approximately £9,400 on additional living expenses during the course of their studies. Home/EU full-time participants can expect to spend approximately £8,000 on additional living expenses during the course of their studies. Additional accommodation and living expenses for the part of the programme that takes place in Greece (1 month) are approximated to be around £1,000.

Scholarships

If you are an EU/UK applicant with a minimum  2:1 or equivalent from an overseas institution for your bachelor’s degree you might be eligible for a 50% scholarshipMore information is available here 

UK/European Union Postgraduate Loans

The UK Government has confirmed that non-means tested loans of up to £10,000 will be available to students studying for postgraduate masters courses from the 2016-2017 Academic year. To be eligible, students will need to be English domiciled.  EU students, and individuals falling within certain specified categories, may also be eligible. 

Full details of the loan, including how to apply, are due to be published this year.  You read more at Introduction of loans for postgraduate students and Government response to the Consultation on Support for Postgraduate Study.

How to Apply

Full-Time MSc Applications

The ICMA Centre operates on a rolling admissions basis, meaning that prospective students can apply for our programmes throughout the year, however we do advise to apply early in the year. We aim to return a decision within 4-6 weeks of receiving your application.

Full-time applicants can apply online.

Learning Options

Full-time

Full-time:                      9 months

Full-time:                      12 months

This degree is only available on a full-time basis on both, a 9 and a 12  months duration. Students will be resident and under take full-time study in the UK.  Under both, the 9 and 12-month programmes students take compulsory and/or elective modules in Part 2. The 12 month option involves taking an elective 20 credit module between July and August, which would also mean a 20 credit reduction in the number of taught modules taken in the spring term.

October – December:    Part 1: Autumn Term, ICMA Centre
January   Part 1 Exams, ICMA Centre
January-March  Part 2: Spring Term, ICMA Centre
March-April:    Part 2: Spring Term, ALBA, Athens, Greece
May – June:  Part 2 Exams, ICMA Centre
June – August(12 months programme only):   Part 3, ICMA Centre
August/Sep:    Part 3 Exams, ICMA Centre

FAQs

Is there an application fee?
Yes, there is a £30 application fee (one charge regardless of how many courses you apply for). You can pay this by card at http://www.icmacentre.ac.uk/netbanx-payments (please contact us if you require details of alternative payment methods).

Can I apply for more than one course?
Yes, you are welcome to apply for more than one course. Please also note that if we cannot offer you a place on your chosen course we may suggest a suitable alternative. If you wish to discuss which courses may best suit your career aspirations you are welcome to contact our careers team. You can find more details at http://www.icmacentre.ac.uk/study/careers-and-graduate-destinations

Will I need to take an English test i.e. IELTS or TOEFL?
An English test may be required. You would be advised of this if we were to make you an offer. You would also be advised of Pre-Sessional courses available. English conditions are monitored by the Postgraduate Admissions office. If you have a question regarding English please contact pgadmissions@reading.ac.uk

I have a conditional offer but have not met my academic conditions. Can I keep my place on the course?
If your results are much lower than our requirements we may not be able to offer you a place. However, if you only missed out by a small amount we will ask the admissions team to review your results and make a decision. This will take a few days although we will try to get back to you as soon as possible.

Can I defer my place?
We usually allow deferrals for one year. Please email admissions@icmacentre.ac.uk if you wish to request a deferral.

Will I have to pay a deposit?
Yes, we require a non-refundable £1000 deposit within six weeks of receiving your offer recommendation. We advise waiting for your official offer (listing all conditions) before paying this. Please notify us when you have paid your deposit so that we do not send you any reminders.

What will I need to make an application?
You will need a card to pay the £30 fee (please contact us if you require alternative payment methods). The very least we need, aside from your completed application form and fee, is a current academic transcript. All other items can be set as conditions to be met at a later date (e.g. degree certificate, references etc).

Do you need references?
Yes, we require 2 references. If you have been out of education for longer than 5 years we are happy to accept professional references from a current manager/supervisor. When submitting your online application you will be asked to enter contact details for your referees. The application system will then send an automated request to your referees. Please note that if you have entered their personal email address (rather than professional), we will require the references to be uploaded on professional headed paper.

How many intakes do you have per year?
Our Full-Time courses only have one intake – September.

Will I need to take a GMAT?
We will need to assess your application to determine whether a GMAT is necessary. A GMAT condition tends to be applied when there is not sufficient evidence of a satisfactory level of numeracy or if candidates have been out of education for a significant period of time. We advise submitting an application as early as possible so that you have plenty of time to satisfy this condition if applied to your offer.

Are there any courses which do not have a quantitative requirement?
Yes, a GMAT is not required for the following courses:

 

  • MSc Capital Markets, Regulation & Compliance
  • MSc International Shipping & Finance

Please note that we do not assign a GMAT condition for MSc Financial Engineering applications as we require a quantitative degree for admission.

What is the application deadline?
We have not set an absolute deadline yet but recommend applying before the end of June to ensure there is enough time to complete all administrative procedures.

How do I apply?
Please submit an online application at http://www.reading.ac.uk/Study/apply/pg-applicationform.aspx . You will be prompted to upload your documents.

How long will the decision take?
We aim to give you a decision within 5-10 working days. It can be shorter or longer than this depending on the time of year. Offers need to be confirmed by Postgraduate Admissions; this takes a further 2-3 weeks after we give you the offer recommendation.

You have recommended that I am made an offer but I have not received my official offer yet. Why is this?
It usually takes 2-3 weeks for Postgraduate Admissions to confirm an offer and give you further details of your conditions etc. We ask you to be patient during this time. However, if it has been longer than 3 weeks, please email us at admissions@icmacentre.ac.uk and we will follow it up for you. Before you do this please check the email has not gone to your SPAM folder.

Why have I been rejected?
The most common reason that we cannot offer a place is that the admissions team do not feel that you meet our entry requirements. If you wish to question this, you are welcome to email admissions@icmacentre.ac.uk to request feedback. We also reject applications if they are not completed within a certain time frame (usually 1-2 months) – we will send you reminders before this point.

How many students do you take?
Our student numbers vary year to year but we tend to have around 250-350 Postgraduate students and 60-90 Undergraduates. We also co-teach for degrees offered by other departments.

Does the ICMA Centre have a code for the TOEFL/GMAT exam?
The TOEFL code for the University of Reading is 0769 and our GMAT reference is SH0-BR-04

Can I pay my Tuition fee in instalments?
We can offer two instalments – half to be paid before the start of the course and half before the start of part 2. 

Additional information

Careers

Careers in International Shipping and Finance

After completion of the programme you will be well equipped with the knowledge for a successful career in the shipping/ transportation industries, as well as in the wider finance sector.

On average more than 90% of our graduates are in work or further education 6 months after graduation.

Indicative career paths for our graduates are ship-owning and transportation companies, ship-broking/chartering firms, shipping divisions of investment banks, shipping analysis/consulting firms, ship-finance arrangers, port operators, and shipping-related investment funds, among others. The wide curriculum of the programme will also enable you to consider careers in the global investment banking and securities markets.

Some of our 2013-15 Graduates have taken up full-time opportunities at:

  • Allied Chartering
  • AllSeas Marine/Paragon Shipping (NYSE: PRGN)
  • Aviation Industry Corporation of China
  • Braemar AMC
  • Clarksons Plc (LSE: CKN.L)
  • Credit Agricole (ACA: EN Paris)
  • Danske Bank (DANSKE: DC)
  • Dynacom Tankers Management
  • Diana Shipping (DSX: NYSE)
  • Endofa DMCC
  • Gulf Marine Services (GMS: Lon)
  • Hav Chartering
  • Lorentzen & Stemoco 
  • Maersk Broker
  • Ministry of Maritime Affairs, Rep of Korea
  • Navig8 Group
  • Navios Maritime Holdings (NYSE: NM)
  • Ocean Intelligence/Petromedia Group
  • Sinograin Oils Corporation
  • Shih Wei Navigation
  • Thenamaris
  • Trafigura
  • Top Ships Inc (NASAQ:TOPS)
  • Wisdom Marine Group

 

Internships/Placements

Internship opportunities with leading companies in the shipping industry are available to outstanding MSc ISF graduates.

A number of companies have joined our work placement scheme and offer work experience placements to some of our excellent graduates (subject to successful interviews and work permits where applicable) 

Additional placement and full time opportunities in the shipping industry are also made available to our students on an ad-hoc basis .

Career Advisory Partnership

Along with a full range of career advisory and professional development services available to our students from our dedicated Career Development Unit, students will also benefit from our partnership with Spinnaker Global, the leading shipping recruitment consultancy. As part of our collaboration Spinnaker provides career advice and support to our students and promotes their profiles internationally for internship and full time opportunities. 

Professional Development and Accreditation

Institute of Chartered Shipbrokers (ICS) Professional Qualification

ICS Logo

The programme is accredited by ICS and our students are eligible for 3 exam exemptions from the ICS qualification, which is the maximum number of exemptions offered by the institute. The 3 exemptions offered are for the ICS modules:

  • Introduction to Shipping
  • Economics of Sea Transport and International Trade
  • Shipping Finance

 

Our successful graduates have to take only 4 out of the 7 ICS exams to qualify for the ICS membership. 

CISI Diploma

The programme is validated by the Chartered Institute of Securities and Investment (CISI)

 

ICMA Fixed Income Certificate

To obtain the requisite knowledge to pass the rigorous FIC exam, students are required to take the ICMA Centre Fixed Income Cash and Derivatives Markets module at Part 2. In order to receive the FIC certificate, students will need to register and pass the FIC exam through ICMA.

Further information is available regarding exemptions in MScs and Professional Qualifications.

Module listing and descriptions

NB. All our Masters degrees comprise a total of 180 credits: 80 credits at Part One and 100 credits at Part Two. Please note that module titles or content may vary each year.

Part 1 Modules

Part 1 Modules

Securities, Futures and Options

Module convenor: Dr Yeqin Zeng20 credits

Introduces techniques for analysing and valuing different classes of risky assets. It also develops ways of optimally selecting portfolios of such assets and develops models of how these portfolios may be priced in financial markets. The techniques introduced in this module are widely applied in other elements of the programme. The module includes simulated trading sessions in our state of the art dealing rooms, where participants are introduced to real world pricing and trading strategies (INVEST sessions).

Outline Content: Financial assets and investing in securities markets; Investors and their objectives; Risk and capital allocation; Optimal portfolio selection; Capital asset pricing model; Single index and multifactor models; Arbitrage pricing theory; Derivative securities and the no-arbitrage principle; Forwards and Futures contracts; Simple hedging; Options basic properties and trading strategies.  

Fixed Income and Equity Investments

Module convenor: Dr Miriam Mara20 credits

Fixed Income and Equity Investments deals with the valuation of fixed income and equity securities. The module focuses on the basic characteristics of each security and the strategies used for approximating their fundamental value and assessing their risk. Its primary aim is to discuss how certain characteristics and relationships can affect the value of fixed income and equity securities and how can they be exploited to form optimal investment strategies. The analytical techniques introduced in this module are widely applied in other elements of the programme. Outline Content: An introduction to securities,  Applying time-value-of-money (TVM) and probability theory to value financial instruments,  Bond prices and yields, Introduction to default risk, Term Structure of Interest Rates, Interest rate risk, Active Bond Management,  Economic and Industry analysis, Financial Statement Analysis, Equity Valuation, Behavioural Finance and Technical analysis  

Maritime Economics and Business

Module convenor: Dr George Alexandridis20 credits

Sea transportation is a crucial catalyst for world trade and economic growth. The globalization of the world economy, increased competition and rapid technological changes have resulted in lower transportation costs. Price volatility, uncertainty, capital concentration and global competition within the shipping markets make economic skills essential for the success of shipping organizations. The aim of this module is to provide an understanding of the structure of the shipping business entity, sectors and organisations and the maritime economic principles and policies related to the effective management of shipping companies operating within the global competitive environment. The course focuses particularly on the relevant shipping markets, supply and demand conditions and decision making based on the structure of the cash flows that shipping companies generate.

Outline Content: Introduction to the Shipping Business and Sectors, The Economics of the Shipping Industry (Dry Bulk, Liquid Bulk and Liner), The role of ports in shipping and trade port economics, Types of freight contracts, Costs and Revenue in Shipping, Cash flow based decisions, The economics of bulk and liner shipping markets, The regulatory framework in shipping.  

International Maritime Trade

Module convenor: Dr George Alexandridis10 credits

This module is the building block of the programme's maritime component in Term 1. The focus is on the global patterns in international trade, the characteristics of the main commodities carried by sea, and the geography of maritime trade (including main producers, exporting/importing countries and flows, routes, ports and choke-points). The module provides an in depth understanding of basic resources, agricultural and energy commodities such as oil and petroleum products, gas, iron ore, coal and grains. General merchandise carried in containers and patterns in liner trade are broadly covered. Participants also explore transportation mechanisms along with vessel types employed for different commodities and shipping routes. IMT is delivered by the Director of Shipping programmes along with senior select practitioners from the dry bulk, tanker and container sectors.

Outline Content:  International Trade (Scope, Theories, History, Key Facts and Recent Trends), Geography of Global Maritime Trade: (History, Regions, Current Routes and Strategic Locations/Choke Points), Container Trade (Merchandise, Routes and Trade Patterns, Vessels, Main Ports),  Agricultural/Soft Commodities (Grains, Cocoa, Coffee, Sugar, other agri-bulk), Metals trade and transport (Iron Ore and Other Dry bulk), Energy commodities trade and transport (Coal, Oil, Gas), Specialised Cargo, Vessel Types. 

Introductory Quantitative Methods for Finance

Module convenor: Professor Chris Brooks10 credits

The objective of the module is to give students an introduction to econometrics so that they might understand the analytical techniques used in the finance research literature. Via case studies and computer modelling exercises, students then learn how to apply these techniques to real data. Emphasis is placed on practical applications of the techniques in the global financial markets. Outline Content: Simple linear regression, Hypothesis testing, Multiple regression: the Classical Linear Regression Model (CLRM), Violations of the CLRM assumptions and diagnosis  *We reserve the right to change this list should staffing or other changes in circumstance make it necessary.

Careers in Shipping (Masterclasses)

Not for credit

This series of masterclasses is part of the shipping specific careers development programme available to MSc ISF participants. The welcome careers masterclass (in October) aims to provide an overview of the different careers roles within the shipping markets with particular emphasis on shore based commercial roles such as Ship-broking, Chartering, Operations, Ship Finance/Banking and Law/Insurance as well as their inter-relations. The workshop focuses on the qualities required, locations and major employers and how Spinnaker Consulting can help. Participants have the opportunity to discuss about their career prospects and receive advice from one of the most experienced shipping recruitment specialists in the world.  Two further shipping career workshops on CVs and bio profiles, practical networking skills, market awareness and job-hunting strategy will be led by the director of shipping programmes. The ICMA Centre careers development team also runs several general careers workshops as part of our career development programme available to all ICMA centre students.

Overview of Shipping Markets (Masterclass)

Not for credit

This one-day masterclass aims to provide an introduction to the shipping industry; its main markets and participants, various vessel classes, types of commodities carried by sea as well as the main risks and sources of capital in the industry. The session also focuses on the current developments and outlook of the global shipping industry. Renowned business practitioners are often invited as guest speakers to this event which takes place during the first week of the first term.

Technical Aspects of Ships and Cargo Handling (Masterclass)

Not for credit

This one-day masterclass aims to provide an overview of some very important technical aspects of ships and cargoes. The issues and terminology introduced here are pre-requisites for the understanding of topics in ship management and chartering. It will cover, among others, types of commercial ships, load-lines, ship construction, engine room layouts, ship surveys, dry docking, cargoes, stowage and cargo handling equipment. The Masterclass is delivered by a renowned Maritime Technology/Engineering Specialist

Part 2 at the ICMA Centre

Part 2, ICMA Centre (Compulsory)

Economic Modelling and Analysis of Shipping Markets

10 credits

The module deals with the most common economic techniques used in the analysis of shipping markets. The aim is to provide participants with the business modeling research tools and skills necessary to conduct empirical analysis in shipping. It follows a “hands-on” approach, where participants use real shipping market data and apply empirical assessment methods through case studies. Emphasis is placed on practical applications of the research techniques employed in international shipping markets. Outline Content: Linear regression models and their application in shipping, Modelling shipping firms’ stock returns and associated risk factors, Univariate time series modelling and forecasting shipping indices, Multivariate time-series modelling and spillover effects between freight and commodity derivatives markets, Modelling long-run relationships and the price dynamics of the dry bulk market  

Available learning modes:

  • Full time

Shipping Finance and Investment

Module convenor: Dr Illias Visvikis

This 30-credits module  focuses on the evaluation and selection of alternative shipping related investment decisions under uncertainty and the different sources of financing available to shipping organizations. The module deals with the process and types of traditional bank financing, as well as alternative sources, such as public equity and bond issuance, private equity and ship leasing, among others. It also provides a rigorous grounding on the long-term investment decisions that shipping businesses make to grow organically or through acquisitions, the valuation tools and analysis used to make these decisions and the factors that affect them.

Outline Content: The Global Debt Ship-Financing Industry, Bank Credit Policy and Credit Analysis, Bank Loan Legal Considerations, Second Hand and Newbuilding Ship Finance, Asian Ship Finance and Export Credit Agencies, Private and Public Equity Markets and the Shipping Industry, High Yield Bond Markets and Mezzanine Finance, Ship Leasing Structures, KG/KS and Islamic Finance, Capital Budgeting and Investment Appraisal, Cost of Capital and Capital Structure in Shipping, Valuing Shipping Companies, Mergers and Acquisitions in Shipping

Ship-broking/Chartering (Masterclass)

Not for credit

This 2 day masterclass aims to provide an understanding of the practical aspects associated with the ship-broking profession.  The session will focus on the role of ship-brokers, the qualities required, and activities they are involved, voyage process and estimations, charter-parties, negotiations and vessel employment options. The majority of the sessions are interactive and require active participation. Students will be required to work in groups as part of some sessions and participate in the “Chartering Negotiations Game”, a simulation designed to provide hands-on exposure. The workshop is delivered by a renowned chartering/ship-broking training practitioner.

Shipping Strategy (Masterclass)

This one-day masterclass aims to provide an understanding of the theory and practice of strategy as applicable to the global shipping industry. The morning session will introduce some of the theoretical concepts, tools and techniques which are commonly used to help formulate a business strategy and also examine how these have been applied by shipping companies. In doing so, the students will critique the strategies which are currently being deployed by a number of leading shipping companies and the moderator will draw on his experience as head of strategy at a major shipping services group. The afternoon session will afford students the opportunity to test their own ideas via participation in a strategy work shop. Each group will prepare a high-level market entry strategy for a newco company and present their ideas to the other groups. The master class will conclude by summarizing the key findings and provide an overview of the challenges of implementation. The Masterclass is delivered by a senior shipping strategy consultant with more than 35 years experience.

Part 2, ICMA Centre (Optional)

Students on the 9-month (12-month) programme can select 40 (20) credits from the following modules:

 

Derivatives and Risk Management in Shipping

Module convenor: Dr Illias Visvikis20 credits

The module provides a solid grounding in risk management and derivatives products in shipping. It builds upon some of the finance concepts introduced in Term 1 modules and applies those concepts within the shipping industry. Risk management is constantly evolving and has become an essential tool within the modern corporation. The cyclical and volatile nature of the shipping business that tends to result in extensive fluctuations in rates and prices associated with shipping operations makes risk management crucially important to shipping companies. As a result, shipping derivatives have been developed in order to more efficiently manage risks, emanating from fluctuations in freight rates, bunker prices, vessel prices, interest rates and foreign exchange rates, amongst others. The module’s main aim is to provide a critical understanding on how all main types of shipping derivatives can be applied in the day-to-day practice of risk management in shipping.

Outline Content: Sources of Business Risks in the Shipping Industry, Traditional Risk Management Strategies, Underlying Freight Assets (Baltic Exchange indices and routes), Derivatives Products and Markets in Shipping: Futures, Forwards, Swaps and Options, Dry-bulk and Tanker Forward Freight Agreements (FFAs), “Hybrid” Cleared FFAs, Containership Freight Swap Agreements (CFSAs), Freight Futures and Clearing, Baltic Forward Curves (BFAs), Freight Options Contracts  and Option Pricing, Advanced Option Trading Strategies, Bunker Fuel Price Derivatives, Bunker Fuel Trading Simulation, Foreign Exchange and Interest Rate Derivatives, Baltic Sale and Purchase Assessments (BSPAs), Baltic Demolition Assessments (BDAs)

Maritime Logistics Management

10 credits

Module Convenor: Prof Dong Wook Song The module focuses on the current developments and practices in logistics and supply chain management within the global maritime industry (i.e., shipping and ports). It also aims to provide an understanding of the challenges involved in the management of systems for the transportation of goods by sea as well as the optimization of maritime transportation and distribution systems. The module covers the importance of the maritime industry within global logistics and supply chain, the impact of current business patterns in logistics and supply chain within the maritime sector, the strategic approach of shipping companies in the globalised market place, as well as the logistics related challenges faced by global port operators. Outline Content: Seaborne trade and maritime logistics, Intermodal and maritime transportation systems, Third party maritime operators, Maritime logistics value management, Shipping logistics management, Dry- and liquid-bulk, and liner commodity logistics, Port logistics management, Port/terminal operations and management, Maritime logistics integration and performance, Maritime logistics international regulations, environmental and security issues *Please note this module may not be available on all programmes

Maritime Law and Marine Insurance

10 credits

Module Convenor: Dr Anthony Rogers

The module provides an introduction to the principal issues of Maritime law. It has particular focus on the private law areas of Admiralty law and practice and Carriage of Goods by Sea; including ownership and registration of ships, shipbuilding contracts, salvage, collision, freight, laytime and demurrage. It considers the main clauses in time charters. The module also aims to provide some understanding of the marine insurance market, products and claims processes.

Outline Content: The common law, commercial law, maritime law and ship arrest, Ownership and registration of ships, ship-building and ship sale contracts, Salvage and collision, Legal aspects of charterparties (including a brief examination of time charters) and bills of lading including an introduction to laytime, The marine insurance market and claims *Please note this module may not be available on all programmes

Commodity Derivatives

Module convenor: Dr Konstantina Kappou10 credits

 This module aims to provide students with a detailed knowledge of the commodity derivatives markets. It examines the aspects of pricing and trading physical derivatives, with emphasis on the energy and shipping (freight) sectors. The course is designed using real-life trading examples, stimulating students, who wish to follow a sales and trading career,  to approach derivatives pricing from first principles.

Outline Content: Introduction to Commodity Markets (History and Evolution, Energy Products, Base Metals, Soft Commodities), Main Market Players and the Forward Curve (Basis Risk, Commodity Futures and Options, Exchanges and OTC markets), Pricing of Commodity Derivatives (Swaps, Options and Structured Trades), The Oil Market and its Mechanisms (OPEC and DOE, Crude Supply and Demand, Inventories, Crude Products and Crack Spreads, Refineries and Margins, Main Energy Derivatives strategies), The Freight Market and its Mechanisms (The Baltic Exchange and the Shipping Industry, Forward Freight Agreements, Trading Freight Derivatives) *Please note this module may not be available on all programmes.

*We reserve the right to change this list should staffing or other changes in circumstance make it necessary.

Fixed Income Cash and Derivative Markets

20 credits

Fixed Income Cash and Derivative Markets applies more advanced valuation and risk assessment methods that build on the knowledge introduced in the fixed income component of the first term Fixed Income and Equity Investments module: It describes the basic characteristics of fixed income derivatives, structured products and credit sensitive securities and develops practical strategies for valuation and risk assessment. It also considers how the markets for these securities are related and begins the task of showing how these relationships can be exploited for trading or investment. The module is designed not only for students wanting a more advanced knowledge of the fixed income markets, but also for students wishing to take the exam for the ICMA Fixed Income Certificate (ICMA FIC) Outline Content: Trading on yield curve views and financing fixed income trades,Bonds with embedded options and inflation linked securities, Interest rate futures, Swaps and swap futures, Interest rate options, Credit risk, spread determination and ratings, Securitisation, CDS structure, pricing and revaluation, Trading and hedging with single name and index CDS, Market practice and regulation in cash and derivative fixed income markets.   *We reserve the right to change this list should staffing or other changes in circumstance make it necessary.

Mergers and Acquisitions

Module convenor: Dr Simone Varotto10 credits

The objective of the module is to introduce students to the technical and practical aspects of M&A deals. In lectures we shall explore (1) several corporate valuation methods (2) how to identify and value synergies and (3) how to finance an acquisition. Selected case studies will help students become familiar with the practical aspects of the deal making process. Outline Content: What makes mergers successful, SWOT analysis and other strategic tools, Bidder and target valuation: DCF, APV, P/E, Book value and similar transactions' multiples, Sensitivity analysis and triangulation, Synergies, Cash, stock and mix financing, Impact of financing methods on valuation, Payment methods, Decision rules, Takeover, Defences: poison pills, staggered boards, supermajority, Legal aspects of M&A in Europe, Cross-border mergers, Valuation issues, Mergers and corporate governance *We reserve the right to change this list should staffing or other changes in circumstance make it necessary.

Research Project

Module convenor: Professor Charles Sutcliffe20 credits

The aim of the research project is to allow students to define and execute a piece of research in finance on a topic of their choice, with direction from an academic supervisor and with assistance from a doctoral student support supervisor. The Learning Outcomes of this module are:
  • Successful completion of the research project requires students to define and execute a piece of research in finance.
  • They will be required to seek out and to critically evaluate published literature in a particular field.
  • Students will improve their report-writing skills, learning how to structure their study, and how to place their findings in the wider context
 

*Please note that the list of elective modules may change should staffing or other changes in circumstances make it necessary.

Part 2 at ALBA and Part 3 at the ICMA Centre

Part 2, ALBA (Compulsory)

Chartering and Charterparty Analysis

20 credits

Module convenor: Dr Photis Panayides

The module provides an in-depth understanding on the various activities related to the commercial exploitation of merchant ships and their different chartering methods and practices. Content includes the procedure and practices relating to the sale and purchase of vessels, their commercial employment under various forms of chartering and the detailed calculation of financial performance including port operations. The module further provides a critical overview of niche cargo markets such as dry bulk, oil and chemical tanker, container, liner, passenger, short sea and inland waters. Where appropriate, the impact of national, EU and International sea transport policies are examined, together with International Maritime Organisation (IMO) regulations that guide the future terms of trade and developments in the design and specifications of ships.

Outline Content: Sell & Purchase of Vessels, The role and Functions of the Shipbroker, Vessel Description and Technical Details, Chartering Terminology, Dry Bulk Chartering, Wet Bulk (Tanker) Chartering, Passenger Chartering, Different Chartering Methods: Voyage, Time, Bareboat Chartering, Contracts of Affreightment, Disputes and Arbitration, Voyage Estimates & Voyage Results, Laytime calculations

Shipping Strategy (Masterclass)

Not for credit

Strategic management skills are essential within the shipping sector. This one-day masterclass deals with the set of objectives and policies adopted by shipping service providers in order to gain a competitive advantage and maximise returns for their owners and other stakeholders. The primary focus is on the external environment and internal resources that determine what businesses to participate in and how to compete. Participants learn, through case studies, to use appropriate tools in order to build, analyze and communicate shipping related strategies.

Maritime Accounting (Masterclass)

Not for credit

The purpose of this one-day masterclass is to provide an overview of the accounting practices commonly employed within the maritime industry. The masterclass is delivered by a maritime accounting specialist and focuses on the critical evaluation of accounting methods used in modern shipping practice. Its ultimate goal is to provide students with the necessary tools to perform accounting analysis within a maritime organization. 

Part 3, ICMA Centre

Students on the 12-months programme will have a choice of 20 credits delivered during the summer:

Alternative and Responsible Investments

Module convenor: Dr Andreas Hoepner20 credits

This module provides postgraduate students with an overview on alternative investment opportunities. It will critically engage students with the characteristics and issues of the main current alternatives investment opportunities being Commodities, Private Equity, and especially Hedge Funds. Beyond this, it will introduce students into newly emerging alternative investment markets, which include Carbon Finance, Microfinance, Islamic Investment and especially Responsible Investment. On this basis, the challenges of hand collecting original data and evaluating alternative investment portfolios’ performance are discussed. Topic 1: Introduction into Alternative Investments Topic 2: Hedge Funds Topic 3: Performance Evaluation of absolute return hedge funds Topic 4: Responsible Investment Topic 5: Performance Evaluation of responsible mutual funds Topic 6: Carbon Finance Topic 7: Intangible Finance (i-finance) Topic 8: Microfinance Topic 9: Intermarket analysis Topic 10: Further alternative investment

Energy Finance

Module convenor: Dr Marcel Prokopczuk20 credits

This module aims to provide students with an understanding of financial decision making in the context of the energy industry. The course will combine theoretical models with practical applications. Outline content:  - Energy markets: products, companies, production and consumption - Capital budgeting in energy companies: real options analysis - Financing of energy companies - Energy derivatives valuation - Risk management in energy companies - Trading in energy markets - Renewable energy markets - Carbon trading - Case studies in energy finance

Advanced Finance Theory with Empirical Applications

Module convenor: Dr Nicholas Zhiyao Chen20 credits

This module is designed for advanced Master’s students and doctoral students. It has a very high technical content. It aims to equip the students with the foundations of theoretical asset pricing and with the relevant skills for performing empirical tests. Additionally, a few important corporate finance topics will be covered in the format of student presentations. The objective of the module is to prepare students to become independent and quality researchers.
 

Come and see us

Why not make an appointment to come and visit. You can chat with our Admissions and Careers teams and a member of academic staff. Email admissions@icmacentre.ac.uk or call +44 (0)118 378 8239.

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