Category Archives: Transp Econ

Transportation Economics Info and links– taught as an independent study for Andrei Pilipenko

DCLI acquires TRAC domestic chassis fleet

The chassis story never ceases to amaze. TRAC was positioning itself to be a big player only a couple of years ago. Now what? Is it unprofitable?  We are still wrestling with who will pay for chassis, and how to share the cost.

American Shipper

via NEWS FLASH: DCLI acquires TRAC domestic chassis fleet

 

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Steel monsters making billions from oil crash

Thanks to the Shipping Tribune for this article.  It shows how ships are really just portable inventory.  There’s a long history of oil tankers being used as storage depots.

The steel monsters making billions from oil crash

Source: The steel monsters making billions from oil crash | The Shipping Tribune

How low can Container Freight rates go?

It seems that big ships may be setting off a price war.  Only the last carriers standing will survive these.  That’s those who can scrape out a minuscule profit over marginal cost.  At these prices carriers are not getting up to average cost, in all likelihood.

This post comes via Richard Ward on linkedin, from Freight Investor Services, a firm dealing in derivatives– futures, forward pricing, swaps and options,  and the like.

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Container Freight – how low can they go? – Freight Investor Services