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Analysis & Insights

Introduction:

To understand the impact of global and local markets in our lives we rely on perspective and analysis as tools to help prepare and create the action plans with which to address common challenges and seize emerging opportunities.

Breaking news delivered 24/7 leaves little time for perspective or analysis. The escalating pace of reported technologies, innovations, disruptions, mergers, local, regional and global collisions can drive our everyday decision making to a short term understanding.

ACT Global Group’s Insights provides analysis from all sectors of the business community, focusing on the benefits of clarity, convergence, connections, and collaborations promoting and integrating best business models.


Liner shipping – a tragedy of the commons?

I could have called thisThe Emperor’s Got No Clothes, but I will go with Charlton Heston’s line from the 1968 film, Planet of the Apes, “You maniacs! You blew it up!” Only the bosses of the great liner shipping companies of today could have been stupid enough to respond to falling freight rates by building strings of much bigger ships.

Yes, we know that the cost per slot is less on a bigger ship. We also know that responding to an excess of something – in this case slot capacity on the major trades – by making a lot more of it is not a way to get the price back up.

 

So why are the grown men in charge of liner shipping – men entrusted with billions of dollars’ worth of investments and on whom thousands depend for their livelihoods – so terminally stupid?

Read more at splash247.com