Factors Affecting The Shipping Market: 1956 Through 1966

The shipping market is a very cyclical market that is heavily dependent on the world economy. This cyclical trend that we have seen in the shipping market dates back to the late 19th century and has developed a pattern of market fluctuations based on several different economic factors. Market cycles are not unique to the shipping industry; they occur in nearly every industry that relies heavily upon supply and demand to determine market values. The time period from 1956 to 1966 is no exception when it comes to market fluctuations in shipping cycles as both highs and lows occurred affecting the world economy immensely. We will take an in depth look at how factors including social and political events, government regulations, economic developments, and technology developments affected the shipping market from 1956 to 1966.

The Suez Crisis in 1956 was the major political event that marked this time frame. The Suez Crisis was an international crisis that occurred on July 26th 1956 when the Egyptian president Nationalized the Suez Canal (Suez Crisis, 2012). The battle between Brittan, France, Israel, and Egypt was ultimately about control over the canal. When the United States and Brittan did not provide financial aid to assist Egypt in the building of the canal Egypt then decided to nationalize it. Brittan, French, and Israeli troops joined together to defeat Egyptian powers quickly. Brittan and France soon backed down which resulted the control of the canal to be retained by Egypt as long as they “permitted all vessels of all nations free travel throughout” (A History of the Suez Canal, 2012). The closing of the Suez Canal affected nearly every aspect of the shipping industry and global economy. As ships were not able...

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...tain points. Many of the contributory factors truly led to an excess capacity of available suppliers as well as the worldwide economic recession. Although the cyclical trend that patterns the shipping industry is inevitable, by analyzing the contributing factors and the effects they have on the market we can hopefully improve forecasting efforts and ultimately maximize profitability.

Works Cited

A History of the Suez Canal.(n.d.). Retrieved on February 10, 2012 from: http://library.thinkquest.org/20176/suez.htm

As They Saw It. (n.d.). Retrieved on February 10, 2012 from: http://astheysawit.com/6314-1957-international-banking-and-finance.html

Stopford, M. (2009). Maritime Economics 3rd Edition. Routledge.

Suez Crisis. (2012). In Encyclopædia Britannica. Retrieved on February 10, 2012 from: http://www.britannica.com/EBchecked/topic/571713/Suez-Crisis