Sunday, January 20, 2008

The economy slows down with its ships

As the price of oil goes up, so does the cost of shipping.  Reductions in shipping speeds mean a slower time to market, which should ultimately cause shortages for products and hence increase the cost of goods.  With a 1 1/2 day lag in receiving goods, just-in-time manufacturing companies could have a harder time.

"Slowing down by 10 percent can lead to a 25 percent reduction in fuel use. Just last week a big Japanese container liner gave notice of its intention to slow down," he added.

Source: Slower boats to China as ship owners save fuel - Yahoo! News

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