Slower, larger, less polluting but on time ships

In an interview with Nils Anderson, CEO of Moller-Maersk, in Fortune (Nov 7,2011), he claims that ships have a 50% on time arrival rate.  His company is now adding larger but slower ships, which will emit 50% less CO2, but have a 95% ontime reliability.  The supply chain impact will thus be larger pipeline inventory, but larger cycle stock.  Is this supply chain tradeoff appropriate from a shipper perspective? Will the lower environmental impact have to be included to justify this choice by shippers ? Does the larger ship capacity decrease the shipowners ability to respond to trade shifts and thus increase risk?

Advertisements

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Service Operations, Supply Chain Issues, Sustainability and tagged , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s