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Container Carriers ‘Unhinged’ from World’s Supply Chain

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Joh Benito
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Good Article
Joh Benito   5/16/2016 8:11:13 AM

The article is very much spot on!

This has advantages and disadvantages;

The Advantages are that:

1) consumers should not see an increase on the price of goods due to increased transport costs.

2) A Newer fleet of boats is better in terms of speed and consumption of fuel which is the main reasons carriers are still getting new boats on their fleets!

3) Newer Boats also required less people to get them from point A to Point B which reduces labour costs for the carriers.

4) Larger capacity boats allow a better unit price / container to get cargo from A To B

5) It will help to reduce the number of carriers world Wide! This is Good but mostly BAD as smaller number of Carriers will create cartels, which will eadt to Price fixing!!

The Disadvantaghes are that :

1) Smaller number of carriers will fix prices so that their expenses are recoup, therefore prices may not come down much more!! They have the advantage of lower fuel proices and most of the carriers are in front there!!

2) Carriers can mouthball somewhere in the middle of te sea and wait until things get better they can save money by doing this!! with smaller crews looking after the iddle boats!!

3) The frequency and lead Times for Sea Freight shipments will increase, therefore some companies inventories will need to go UP!!!

4) Don't be surprise that in future Low Costs carriers are not going to raise from nowhere! see what is happening with the Aviation industry!!!

Overall is good News!!!

For what is worth!!!

John Benito!!! 


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