Category Archives: Strategy

DOT-117 tank car rule debuts 

A very nice chart of the modifications needed to make tank cars more explosion proof.  The picture is from the article below.  There’s a new DOT-117 (TC-117 in Canada) design, and a long list of modifications that must be made to older cars.  These can be expensive to upgrade and have a variety of expiration dates when they no longer can be used without retrofit.  It’s a nightmare for the very active leasing business, and for companies who must sublease cars they control  when they face a downturn of demand.  The kind of complexity financial businesses such as leasing dote on.

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Railway Age Logo

Source: DOT-117 tank car rule debuts with controversy | Railway Age

 

Here’s what a DOT-117 rail car looks like, from the article:

DOT-117 tank car rule debuts with controversy

This blog says that only 225 cars were upgraded the first year.

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A year ago, when Federal regulators announced new rules for “high hazard” trains moving crude oil and ethanol, the oil industry protested that the rules were too strict.

Source: Rail Safety Report Card: Only 225 Of Over 100,000 Unsafe Tank Cars Were Retrofitted in First Year | DeSmogBlog

Finally, we have this cheery note:

Tacoma Weekly Logo

A stack of 24 tanker cars partially derailed on the Tacoma Tideflats about 9:15 a.m. on April 22. There were no injuries. The tankers were empty so no spill following the incident but the otherwise busy intersection of Lincoln Avenue and Taylor Way was closed for 12 hours to allow crews time to lift the tankers back onto their chassis and for investigators to gather information. The accident happened at a curve in the track and occurred when the weather was slightly rainy, although track conditions apparently didn’t play into the cause of the derailment. Damage estimates to the cars hover around the $250,000 mark.

Source: Tacoma Weekly | Empty tanker cars jump tracks on tideflats

This History of the Shipping Container

John Edmonds of Freightos sent me this history of the shipping container in time for the 60th anniversary of the first container shipment, the Ideal X, on April 26th.

I found it useful reading.  It never hurts to remind ourselves of the disruptive effect mass acceptance of a standard has on coordinating efforts in an industry.  We see it over and over in high tech, energy, autos, manufacturing.

Of course some standards fail to be accepted (for instance, beta video tape), and fall by the wayside.  But we cannot advance if we do not try; that is the nature of disruptive entrepreneurial behavior in business.

Such is the dilemma facing ocean carriers and alliances today. Perfect competition will not yield profit; the surplus will go to those with critical inputs.  Instead the pie must be made bigger by coordinating efforts through standards.  This will inevitably create niches in which particular firms can survive nicely by adding their special value.

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A comprehensive history of the freight shipping container; its creator, Malcolm McLean; and how it’s driven the industry, the global economy, and more.

Source: This History of the Shipping Container

Shall we call it Ocean’s Four?

A new alliance is on the horizon. How will it benefit shippers and BCO’s?

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NEWS FLASH: Container carriers unveil plans for new “OCEAN Alliance” | AS Daily Newsletter | AS Daily | American Shipper

Source: NEWS FLASH: Container carriers unveil plans for new “OCEAN Alliance” | AS Daily Newsletter | AS Daily | American Shipper