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?

About aviyer2010

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: Logo

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

Facebook photo

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

Connecting to %s