Category Archives: Strategy

Zhengzhou-to-Europe Rail Freight Debuts

Posted on August 9, 2013 by just2bruce | Leave a comment

The Journal of Commerce reports that a new freight train service to Europe from China is available. The service will take about 18 days to reach Hamburg, shorter than a sea voyage. Container by rail is only slightly more costly than container by ocean shipping, and has a smaller environmental footprint, measured in carbon or particulate. At sea the pollution is discharged in no jurisdiction, whereas rail discharges where people might live.In the vast expanses of western Asia, the effects will not be politically harmful. So this line could indeed be competitive.

There will be 14 trains a year, or about one each month, so it won’t be the frequency of liner shipping.

Zhengzhou-to-Europe Rail Freight Debuts | JOC.

http://www.deutschebahn.com/en/hidden_rss/pi_rss/4261464/20130802_zhengzhou_train.html

http://www.scmp.com/business/china-business/article/1285721/train-cuts-time-europe-freight-deliveries

Is bigger better in ocean shipping?

Posted on July 22, 2013 by just2bruce | Leave a comment

The P3 consortium may expand to more companies. This is a form of cooperation or collusion protected by law in many countries, so that guaranteed service can be provided when it would be too expensive and risky for one shipowner to do it. But is bigger always better? And how about the consumer, the shipper? Is there a chance of collusion on rates?

Faster clock speed of business may require more frequent service, and that makes it even harder to provide ships often enough. Right now, freight rates are low, and we do not see the consortium as a problem. In fact, it allows slow steaming to be offset by more frequent ships, which levels out the delivery time problem it causes. But in the future, there is some chance rates will go up.

Maersk cannot rule out a P4 network – Lloyd’s Loading List.