Derived Demand in Tanker Industry

The need to move oil for the purpose of adding value to the commodity

The demand for oil measured in ton-miles per time period

The demand for transportation services in the tanker industry

The product of cargo volume and distance travelled per time period (correct)

Shift to short haul trades

Increase in the average haul of crude movements

Changes in the route structure (correct)

Expansion of Suez Canal capacity

Stable oil trade routes and increase in average haul of crude movements

The rise of larger tankers and wide variation in cargo volume

The dominance of short haul trades and expansion of Suez Canal capacity

The closure of strategic routes and changing structure of oil demand pattern (correct)

<p>$5,000$ miles</p> Signup and view all the answers

<p>$VLCC$ and $ULCC$ tankers</p> Signup and view all the answers

<p>To add value to the commodity</p> Signup and view all the answers

<p>It is part of the production process</p> Signup and view all the answers

<p>Derived demand</p> Signup and view all the answers