The Practical Application of Economics to Merchant Ship Design
1969
Benford, Harry
Naval architects and marine engineers should apply practical economics to decision_making in ship design. A commercial ship is not an engineering success unless it is also a potentially profitable investment. Profitability is related to technical characteristics, and these relationships should be understood by the designer. The paper gives a brief outline of several economic methods applicable to ship design, pointing out that the choice of criterion depends on such circumstances as whether revenues are predictable or not. lt continues with suggested methods for estimating weights and building costs for ships. The problems of predicting annual transport capacity and operating costs are discussed in detail. There follow several comments on the practical application of all the foregoing ideas to decision_making in ship design. Sample studies are appended. Numerical values given in the paper are only intended to indicate trends. There is no intent to present an estimating handbook; the emphasis is entirely on principles and methods of application.
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