Category Archives: Managerial Econ

Posts relevant to Managerial Economics.

Commentary: What makes Alaska’s oil industry unique?

Posted on September 1, 2020 by | 1 comment

This article showcases the difficulties of arctic oil production andlogistics. It is a very nice summary of the most important long term issues.

Of course there are many others, on the sustainability side, like devastation of the tundra habitat, and melting of the permafrost, which might have an effect on global climate. But the more direct impacts noted here show that it’s a tenuous business that only persists because people still need so much oil.

Article Link: https://www.freightwaves.com/news/commentary-what-makes-alaskas-oil-industry-unique

 Darren Prokop Monday, August 31, 2020

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Posted in Logistics, Managerial Econ, Production Operations, Supply Chains, Sustainability

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Alliances schedule 75 blankings for Q3

Posted on June 3, 2020 by | 1 comment

We continue to see a lot of blanked voyages. Demand must not be shaping up to be very good after all, and prices just won’t stay up. What else would you expect if you make your customers guess about the inventory they have to carry. Once they have bitten that bullet, it will be hard to get them back into a non-competitive shipping mood.

By Mike Wackett 03/06/2020

Alliances schedule 75 blankings for Q3, as hopes of peak season demand fade – The Loadstar

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Posted in Logistics, Managerial Econ, Microeconomics, Shipping, Strategy, Supply Chains

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Blanking voyages masks real impact of Covid

Spot rates for container shipping are staying up, but only because ocean carriers continue to blank voyages big time.

If you were shipping and you feared your voyage would be blanked, what would you do?  You would be prepared to buy some shipping at spot, to be sure you can get on the ship.   Your ratio of long-term (and possibly delayed) contracting for shipments and your short-term purchases would change in favor of the short term.  And that would keep short term demand up in spite of a long-term need going down.  That’s what’s happening now.

With COVID-19 out there, and no certainty about international trade, it seems certain that conditions are much worse than are being reported based on shipments. At some point the other shoe will drop, and all prices will go down.  We need not to trust the BIMCO spot prices for future predictions right now.

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via Blanking voyages holds ocean rates steady, but masks the real impact of Covid – The Loadstar

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Posted on May 4, 2020 by in Managerial Econ, Microeconomics, Shipping, Supply Chains

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