Container Imbalances And The Context Of The Global Economy

Finally, there are those costs that are common to both global and domestic sourcing. Direct labor and materials costs, lead-time costs, transportation costs and inventory costs are a part of both domestic and offshore sourcing. Transportation costs, inventory costs, and lead-time costs tend to be higher when sourcing globally. On the

Global Sourcing has been defined has companies practicing offshoring and outsourcing. Labor Market under Globalization and the other readings we have covered in class so far has emphasized that the primary factor different companies engaged in global sourcing was due to low labor cost. Although low labor cost is very important factor the Global sourcing reading also informs that there are factors such as facilities and infrastructure, availability of resources, easy access to market and consumers and the political conditions which a company has to consider. At the end of the reading the concept of “Race to the Bottom” was very interesting. This concept informs us how large companies try their best to reduce their expenditure and increase profit by trying to reach countries with low labor cost. In the other hand government of different countries are forced to adopt new polices, reduce taxes and weaken economic polices in order for companies to invest in their country. The opening of different companies will provide people with jobs which are very labor intensive with deteriorating working

Maritime industry it plays a very important role in international freight. It provides a cheap and high carrying capacity conveyance for consumers. Maritime is clearly concerned with the transportation of goods and/or passengers between two or more seaports by sea; , Its disadvantage is that it needs longer transport time and its schedule is affected by the weather factors. To save costs and enhance competitiveness, current maritime logistics firms tend to use large scaled ships and cooperative operation techniques. And also that the current maritime customers care about service quality more than the delivery price. so, it is important

The process of globalization has numerous significant effects on countries, organizations, and individuals. These effects can be observed in the quality of products, in their prices, but also in their availability. Because of globalization, numerous companies prefer to expand their business on international level. Some of them outsource some of their processes and activities to cheaper destinations that allow them to reduce their investments.

Containerships are a very popular mean of cargo transport at sea. In this project the main features and design characteristics of containerships will be analyzed such as the size categories of containerships, the different types of cargoes that they are transporting , the characteristics of container gears and the speed that a container can develop. Also the major companies that own containerships and their structure will be described.

Reefer box, as known as refrigerated container, is listed in the Hanjin’ potential products list. Since reefer boxes are limited and demand for it is escalated from EU to Asia, reefer boxes are promoted inbound in Asia to export boxes to Europe. As a result, Hanjin can maximize EQ-equipment turnover. Some ports in Europe, such as Felixtowe in Great Britain, have a surplus of reefer boxes, thus the company can adjust the rate higher in order to limit the trade into such area while surplus areas, such as Barcelona in Spain, are offered a reasonable low rate to give Asia-Europe service promotions. Afterwards, the company gets higher contribution margin derives from Europe-Asia trade. Another way Hanjin reinforces its core business globally is promoting “shipper owned container”, “SOC” for short, in the area where boxes are deficit to save on empty repositioning cost. In surplus areas, Hanjin tries to be flexible with its rates to clear out the boxes and send them to other areas with high demand. The rates can be adjusted from lower to higher accordingly. Hanjin Shipping, additionally, has a service diversification to Africa as NAF-North Africa-Asia, WAF-West Africa, EAF-East Africa, SAF-South Africa lines are added. Before cargos are

Ocean Carrier Inc. owned and operated cape-size dry bulk carriers worldwide. Major Cargo type is iron ore and coal. Vessel sizes are 80,000 DWT to 210,000 DWT. Cape-size carriers travel around Cape Horn rather than the Panama Canal due to size constraints. The cargo operations include maintenance, repairs, insurance, supplying of lubricants, maintaining supplies and on board stores.

1. What are the most significant factors affecting the attractiveness of the container shipping industry?

As we all know, global trade is no easy, companies cannot just ship their products to another country and sell it in the foreign market, there are many factors need to be considered and analysis. In my point of view, the factor can be separate into internal and external factors.

In general this would give the Port of Amsterdam the ability and advantage to alter strategy and their value proposition of niche market targeting. The Port of Amsterdam has made a diversely distinguished document related to the amount of cargo flow. This is country policy specific and includes India, Russia(Baltics), Brazil, Ghana and Turkey. The analysis show that the cargo flow from India has grown in the past 10 years. This amount is comparatively small to Russia and Brazil, but considering how tricky doing business with India can be for International companies is no surprise. Alongside the projected market growth of India, the trend of a growing economy would continue; implying for a long term business development with

Modern production is increasingly growing around the so-called global value chains. According to World Trade Report for 2014, they are one of the main trends in modern economy and trade. Their growth in the last two decades have not only significantly change the nature of the world economy, but also had a strong influence on individual countries. However, the extent and nature of these effects are still not well understood by experts.

Just like stock markets, the Air Cargo market is very difficult to forecast and volatile in nature given the many variables and factors involved in air freight trends globally. In spite of that, the air cargo industry is

Air freight market is not stable and might be weak because of uncertain international trade increase (Barnard,2015). There was fluctuation in air cargo demand over the last 10 years from 2006 to 2016 which indicates that cargo demand could be changed by some external and internal influences. Some figures were released about worldwide air freight market and presented that air cargo capacity increased 2.2%, comparing to 2014. While this was the 5% growth calculated by The International Air Transport Association (IATA), the growth of cargo volumes in 2015 was much slower than 2014(Barnard, 2015). However, some experts pointed out that global air freight market get a positive growth from 2011, and it is enjoying a relatively steady growth, due to the enhanced trade and economic recovery after the global financial crisis of 2008(Huang,2016). Because of sluggish world trade growth, air cargo suppliers face a lot of challenges including alternative transportation, perspective uncertainty and unexpected policy and here are some potential solutions: improving customers service, efficiency, security and reducing negative environmental impacts.

Every firm would love to invest in shipping industry due to large profits involved. However this would seem easy but practically it is lot more difficult and virtually impossible to establish in container line business. The problem pertains to large capital investments in form of vessel and container procurements and risk of operating vessels. Even if we take the examples of biggest companies

This section seeks to provide a macroenvironmental picture of the shipping industry, by looking at vary factors as following: political, economic, socio-cultural and technological.