Subscribe to our free, weekly email newsletter!



Are ocean carriers in a “boom and bust” cycle?

By Patrick Burnson, Executive Editor
October 11, 2011

While the biggest ocean carriers seek the economies of scale from ever-larger super post-Panamax ships, they run the risk but of introducing too much capacity at the same time, thereby ruining the already fragile supply/demand balance.

This observation, made by Drewry’s latest quarterly Container Forecaster, also suggests that the “boom and bust cycle” is now an annual occurrence, rather than something that happens every 4-5 years.
Neil Dekker, a chief analyst with Drewry, noted that three factors will determine how the industry will develop in the next 5-10 years. 

Number one, he said, will be carrier behavior and commercial strategies. In other words, will they learn from their mistakes? Number two, will be the continued investment in ever larger container vessels. And finally, how will they respond if consumer confidence continues to erode, and “near sourcing” takes share away from global deployments?

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

UPS Access Point locations serve as a replacement delivery address when consumers are not at home to receive a package or when consumers want a delivery to go somewhere other than their residence.

Non asset-based third-party logistics services provider Roadrunner Transportation Systems Inc. (RRTS) said this week it has acquired El Paso, Texas-based Stagecoach Cartage and Distribution for $35 million along with an earn-out at $5 million.

The three California port directors who faced the wrath of shippers at the annual meeting of the Agriculture Transportation Coalition (AgTC) in San Francisco late last June, surprised many with their candor and heartfelt mea culpas.

Matson, Inc., a leading U.S. carrier in the Pacific, is moving quickly to fund improvements in its new Alaska operations following its May 29 acquisition of Horizon Lines' Alaska services.

Josh Green, CEO of Panjiva, an online search engine with detailed information on global suppliers and manufacturers, said despite the recent trends coming out of China, it is important to remember is that on a big picture level, its impact on the global economy is big and growing.

Article Topics

Blogs · Global Logistics · Global · Ocean Cargo · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA