Covid puts workers at risk of modern slavery

Posted on September 4, 2020 by | 1 comment

Modern slavery is not like the kind we know from the colonial era. Instead, people have no permanent jobs or benefits, and there are no rules controlling their employment relations; or perhaps there are not even jobs to be found. Society for most becomes anarchy, nations of refugees with nowhere to be, nothing to do.

According to this report, quite a few countries, mostly in the far east, are moving into a high risk category because of layoffs and dislocations due to the virus. In a sense, though it is happening everywhere, even in the US. People can’t find jobs, and it’s likely to continue long after the virus passes out of daily consciousness, as companies figure out how to do more with less. We will be converted to nations of gig workers with fewer and fewer gigs.

By Alex Lennane 04/09/2020

Link to article: https://theloadstar.com/warning-to-firms-as-covid-puts-more-and-more-workers-at-risk-of-modern-slavery/

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Posted in Labor Economics, Logistics, Managerial Econ, Org Behavior, Sustainability

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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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Containerized soybean exports spike

Posted on August 31, 2020 by | 1 comment

There are suddenly more exports of soybeans to China in containers. It’s earlier than usual, and more of them. Over several years now, containerized exports of soybeans are rising, but suddenly it’s faster. A Taiwanese source said that “it’s more competitive than bulk” right now. Taiwan seems to be the main purchaser.

There are a few reasons why containers might be better for soybeans. First, you can trace the source much more closely than bulk. For customers who care, this may be a big deal. Second, the quality may be controlled better. In bulk vessels the beans are mixed with other lots, and even when an attempt is made (usually with a tarp or other barrier) to keep beans from two sources separate, some may escape the barrier. A third reason is ease of off-ship handling in areas where there aren’t good bulk unloading and storage facilities. Many remote regions can handle containers, load right on a truck, and transport inland to a distant point, when it might be difficult with bulk beans. And of course, it is a product that can be loaded for reverse travel for containers, to get them where they will be needed next.

I think in general we would expect bulk beans to be cheaper, because according to the article, the containers hold 20-22 metric tons of beans whereas bulk lots tend to run to 60,000 metric tons. However, it is nice to see that the niche is growing.

Chris Clott and I wrote a paper on this some years ago: Clott, Christopher B., Bruce Hartman, Elizabeth Ogard, and Althea Gatto. (2014). “Container Repositioning and Agricultural Commodities: Shipping Soybeans by Container from US Hinterland to Overseas Markets”.  Research in Transportation and Business Management. DOI: 10.1016/j.rtbm.2014.10.006.

https://www.spglobal.com/platts/en/market-insights/latest-news/shipping/082820-containerized-soybean-exports-from-us-to-asia-spike-long-term-opportunity-seen

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Posted in Logistics, Shipping, Supply Chains

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