Category Archives: Production Operations

A taste of irony: LNG tanker transits new Panama Canal locks

LNG is an area in which we can expect the new bigger Panama Canal to make a great difference in trade patterns. The major source of US export LNG will be in the deep south, the US Gulf Coast. There are also major LNG processing and storage facilities in the Caribbean island nations.  Transit times to Asia and to South America will be substantially improved, making US LNG exports competitive from a transportation standpoint.  And it appears the canal is accomplishing that.

So why hasn’t the flow of tankers happened yet?  The Canal management expects it to happen soon.  But wait a minute!  Just as for container ships, it appears that the Gulf Coast tanker ports cannot handle the larger vessels. They need operational and infrastructure improvements to support the larger ships’ needs for berthing, loading, and unloading.

Isn’t it ironic?  All the angst over dredging East Coast ports for container ships and rigging terminals to unload big ships fast, and no one thought of the same issues for tankers? Is no one in shipping thinking about supply chains?

Here’s the nice story by Deepa Vijiyasingam of Platts.

Platts Source: First LNG tanker transits new Panama Canal locks; 54 vessels through: ACP – Shipping | Platts News Article & Story

Hair Cuts around the World: An empirical study into GATT and GATS

Jan Hoffman of UNCTAD, President of the IAME, has published  another hair-raising report on international trade.  I hope he will consider submitting to the IAME conference in Hamburg this summer. Perhaps a poster presentation– it is too late for a peer-reviewed paper.

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Abstract After years of hard work, I am pleased to present the results of an extensive empirical study on exports of services and related imports of goods: The Production of Hair Cuts around the Wo…

Source: Hair Cuts around the World: An empirical study into GATT and GATS – Shipping, trade logistics and development

Studies like this one and Colin Camerer’s famous report on New York taxi drivers have the potential to alter our views of conventional wisdom, macro- and micro economics about everyday economic phenomena.

Artificial intelligence will remake global logistics

According to Sean Kilcarr (writing in Fleet Owner), many of the trends in logistics boil down to technological advancements. this article and especially the study from DHL details the types of technology moving to the forefront, and makes the case that they will revolutionize logistics.

I agree with that view. And the good thing about it is that these technical changes allow evolutionary as well as disruptive innovation, and over time will move the entire field to greater efficiency and more effective performance for each customer, perhaps much faster than we think.

Many of the changes are straightforward application of technology using industrial engineering techniques.  They will, however, require a highly educated and technologically literate work force. Those folks are coming along; young folks are already much more computer literate than their parents; but our educational system must still push the general populace by giving opportunities to learn coding, math, science, and engineering disciplines, and to have fun doing it through innovation and experimentation rather than boring classes.

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Global logistics provider DHL believes worldwide supply chains are beginning to undergo a fundamental transformation as more “artificial intelligence” is deployed to handle both the domestic and international movement of goods

Source: DHL report says artificial intelligence will remake global logistics | Fleet Management content from Fleet Owner

Here is the full 55 page report from DHL, downloadable here also:

dhl_logistics_trend_radar_2016 (pdf)