Justification of financial safety analysis approach in cargo-and-passenger ferry operations management

Abstract

Currently, ferry services are widespread in Europe, the Baltic States, the CIS and they continue to progress rapidly despite the unstable global economy. An activity of modern cargo-and-passenger fleet is based on nevertheless the perspective of stable profit generation. In conditions of ferry market instability, the important task is to ensure the break-even analysis in operation of vessels and justification of relevant quantitative indicators. At the same time, when managing the production activity of the ferry operators and, in particular, when analysing the ferry operation the indicator of its financial safety factor is of great importance. This paper refines static indicators and determines dynamic indicators of critical quantity of cargoes and passengers in ferry loading; gives analytical method of its justification; develops analytical method and presents graphical method of financial safety factor estimation when loading of cargo only or boarding of passengers only, as well as performing composite actions - loading of cargoes and picking up passengers. © Transport and Telecommunication Institute 2014.