HOW TO MAKE MILLIONS OR BILLIONS IN SHIPPING [THE MARITIME CHRONICLES EPISODE 17: 5 MINUTE READ]
There is a lot of money in shipping, but how do you get into the industry? Do you need a lot of technical knowledge? Good question. I have no idea to be honest. But if it is like anything it used to be about 50 to 100 years ago, all you really need is good connections.
WHAT KINDS OF CONNECTIONS?
Back then I don't think it mattered how much expertise you had. Aristotle Onassis I think is a good example. He was a tobacco guy, who just saw that he could make more money shipping the stuff than just making it. So he bought some cheap ships via a deal with the US govt. He sold them equipment for old ships and then he used those old military ships to transport tobacco. And then because he made so much money he just kept buying and buying ships.
WHY DO YOU NEED CONNECTIONS AND NOT JUST MONEY OR EXPERIENCE OR EXPERTISE?
But I think networks are still crucial because of insurance. Insurers usually can't insure these vessels because the financial loss in the event of a ship sinking is just too big. They can get insurance for hull/machinery damage or for cargo loss, but not for major events like the ship sinking. Such events mean financial losses of hundreds of millions, and even billions, of dollars. Especially for LNG or PNG ships. Liquified Natural Gas or Petroleum Gas ship prices can literally reach up to a billion dollars each.
PROTECTION AND INDEMNITY CLUBS TO THE RESCUE
It would be relatively easy for someone to take out a ship to get the insurance money directly or indirectly.So what the shipping industry does is they have what they call P&I clubs. Yes you heard right, CLUB! P&I stands for Protection and Indemnity Club. So these are groups of shipowners who join together like in a medical scheme / health insurance. They have a kitty that they all contribute to that would cover some adverse event. If nothing happens, the next year the contribute a little less.
If something big happens like an oil spill or a ship sinks, they all contribute more next year. Sounds pretty primitive, but that is how it works. It works by the principle of General Averages, which was developed by the Ancient Greeks. No wonder the Greeks are so good at shipping. Onassis was Greek.
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Thanks swartie, how did you find your way into this topic?
You're welcome, and thanks for the nickname!!! I am delighted that you enjoyed my post. What did you like most about it? I wrote my MBA dissertation on Maritime Ship Finance. I hope you have a WONDERFUL day!!
Swartie, I am interested in how economy works , am an old Buffett fan and have never sold a single BRK share.
Swartie, please comment on Seadrill and Transocean. They are oil drillers, but Seadrill has it's background in shipping. I got so badly fucked investing with Seadrill. I lost 1/2 a house because of those bastards!
Great idea! I am putting it on my list of future blog topics. I hope you have a WONDERFUL day! Following you.
Would take sumtime to get millions..depends on the niche you wanna make the millions in & how fast. Investing of course can do it but there's risks which is in everything that involves making money. I think drop shipping is a simple way to make some bank if there is time and effort put into it.
Thanks for the comment @mikey84. How does that work if you wanted to start a drop-shipping business? I think you can make millions fast.
Find a website with good quality products for wholesale pricing and does drop shipping. Then post on ebay,amazon,bonanza or sites like that. With drop shipping, you only post the item for sale and once it's sold you go to the site where the item sold was,buy it and ship it to the customer's address. You keep the profit,no inventory,no buying products then selling them which is risking your money. Your basically a middleman. Post item,person buys it for your cost, you go to site thsat has lowest price for that item,you buy it,have the site send item to buyer instead of your address. Hope it made sense.
Great idea! Do you do it full time? What would you say are the best types of products to do this with? I hope you have a WONDERFUL day! Following you.
you're making steemit a great community with your content pjcswart! keep it up!
Thanks for your kind words my dear sir @steemking777. I am delighted that you enjoyed my post. What did you like most about it? I hope you have a WONDERFUL day!!
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Nice topic... I love this topic
Thanks are you in the shipping industry?