Category Archives: Managerial Econ

Posts relevant to Managerial Economics.

Strike! at port terminals

Are strikes at ports force majeure events? and what are the consequences?  This is an issue in shipping because a strike in a port backs up traffic– ships cannot load or unload, and cargoes are massively delayed.  The result is that much money is lost.  A lot more than if ground transport is involved, because you only have the choice of ocean or air modes, vastly different in cost and capability.

Here we see that force majeure is not really defined in law, and that economic loss is not a reason for force majeure– it is always a possibility in commercial transactions, and you are supposed to consider that possibility when signing a contract.

All About Shipping » Blog Archive » Strike! The impact on shipping of industrial action at port terminals.

Rising crew costs on ships

It costs more to pay a crew on a ship this year. That was the biggest factor.  Keep in mind that petroleum costs did not go up during the year.

Rising crew costs become key factor in operating costs: Moore Stephens | Shipping Tribune.

Should we supply our competitors?

Learn some  lessons from the luxury watch business.

Important article on quasi-cournot competition with substututability.

Swatch and supplying competitors « The Operations Room