Maurice Jansen

container ship

Container Shipping Still has Free Lunches Left

By Maurice Jansen 2016-11-09 14:52:24

In one of my previous articles I arrived at the conclusion that container shipping is an industry that is mixing up size with growth. Technological advancements lead to economies of scale and lower unit costs for larger assets, but not to economies of growth for the firm because it deteriorates the return of investments of existing assets.  In the past few months major events among container liner operators underscored this conclusion. Hanjin, a Korean colossus in container shipping went...

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CMA CGM Benjamin Franklin

Container Shipping: Mixing up Size with Growth

By Maurice Jansen 2016-08-23 19:12:37

While there seems no end to the technological economies of scale in container shipping, the question is whether building ever bigger ships serves a purpose, for the firm itself and for society at large. In the process of scaling up, liner operators are mixing up size with growth. Big is no longer beautiful Talking about vessel sizes of 20,000+ TEU nowadays not only brings admiration. Year-on-year growth in TEU capacity has led to overcapacity and deterioration of freight rates. For...

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