Question Two (35 marks) The graphic below shows the development of the global fleet from 1963 to 2017, by mapping the cycle of new vessel construction (annual deliveries of new tonnage from shipyards) against the cycle of deletions from the global merchant marine, in the form of tonnage of vessels sold annually by ship owners to ship breakers for scrapping. Use the information in the graphic to answer Questions 2 (a) and 2 (b) that follow. Cycle of new vessel construction and demolitions, 1963-2017 180 160 140 120 100 DWT millions 80 60 60 40 20 20 HH o 1991 1989 126 5661 1997 2007 2001 5002 2013 2011 2017 1973 2015 1999 1985 1983 1975 1977 1978 1981 1983 2003 2005 Years -New -Demolition Question 2 (a) What principal factors are likely to drive the decision on the part of a ship owner to acquire new vessel capacity (by placing an order for new tonnage with a shipyard and then taking delivery of the newbuilding)? To what extent are these factors different from the principal factors a ship owner might take into consideration when taking a decision to dispose of existing vessel capacity for demolition? (Here, once again, I am looking for a fairly full conceptual discussion of the principal shipbuilding and demolition drivers/determinants.) (25 marks) Question Two (35 marks) The graphic below shows the development of the global fleet from 1963 to 2017, by mapping the cycle of new vessel construction (annual deliveries of new tonnage from shipyards) against the cycle of deletions from the global merchant marine, in the form of tonnage of vessels sold annually by ship owners to ship breakers for scrapping. Use the information in the graphic to answer Questions 2 (a) and 2 (b) that follow. Cycle of new vessel construction and demolitions, 1963-2017 180 160 140 120 100 DWT millions 80 60 60 40 20 20 HH o 1991 1989 126 5661 1997 2007 2001 5002 2013 2011 2017 1973 2015 1999 1985 1983 1975 1977 1978 1981 1983 2003 2005 Years -New -Demolition Question 2 (a) What principal factors are likely to drive the decision on the part of a ship owner to acquire new vessel capacity (by placing an order for new tonnage with a shipyard and then taking delivery of the newbuilding)? To what extent are these factors different from the principal factors a ship owner might take into consideration when taking a decision to dispose of existing vessel capacity for demolition? (Here, once again, I am looking for a fairly full conceptual discussion of the principal shipbuilding and demolition drivers/determinants.) (25 marks)