Category Archives: Production Operations

 Should Maersk invest in more Ultra Large Container Ships?

Jan Hoffman, President of the International Association of Maritime Economists and Chief, Trade Facilitation Section at UNCTAD, published these reflections on large container ships.  they’re on Linkedin Pulse.   Everyone’s talking about whether big ships should be built or not.  But he asks a good question, whether the conventional arguments are relevant.  Anyway, do we have any institutions capable of doing anything about the perfect competition in ocean shipping? He correctly points out that eliminating big ships and consolidation will lead to higher prices for delivered goods throughout the world, and consumers of these products will pay more.

Jan Hoffmann   Linkedin Logo

Containerships have never been bigger than today, container freight rates have never been lower, and never has so much container carrying capacity been idle. Not a trilemma, but three sides of the

Source: Three irrelevant reasons why Maersk & Co should not invest in more Ultra Large Container Ships | Jan Hoffmann | LinkedIn

Expanded Panama Canal operational by early July

ACP, the Panama Canal Authority, says the expansion will be operational by early July.  I have not heard rates yet.  The article gives explicit sizes for vessels that can transit the new digs.

Platts

Source: Expanded Panama Canal to operational by early July: ACP official – Shipping | Platts News Article & Story

Journeys: Seeing the world as customers do

Again McKinsey says something relevant to ocean carriers. Do you see the world from the customer’s viewpoint? You deal in journeys, why not look at the customer’s?  Or are you stuck trying to make touchpoints successful without seeing the big picture?

mckinsey-logo

To maximize customer satisfaction, companies have long emphasized touchpoints. But doing so can divert attention from the more important issue: the customer’s end-to-end journey.

Source: From touchpoints to journeys: Seeing the world as customers do | McKinsey & Company