Sunday, January 16, 2011

Thoughts: Port Congestion

Impact:
> reduce supply of ships (held up in waiting)
> Push up freight rates

Cause:
> Bottlenecks (Temporary/ Long term)
> Seasonal - Weather conditions, Fluctuations in demand for seasonal commodities
> Natural disasters, Labour strikes, others - unpredictable causes

Investigate:
> Regional plans to develop ports to address bottleneck issues
(improve port handling efficiency increase effective supply)

>How likely plans/announcements will materialise?

  • Fundings available?
  • Records of hitting investment targets?
  • Bureaucracies
>How likely bottleneck issues can be resolved within 5 years

>How possible for bottlenecks catch up with growth in commodity demand 

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