8 Questions
What is the flow demand in the context of tanker industry?
The product of cargo volume and distance travelled per time period
What can reduce ton mile demand even if oil volume demand is unchanged?
Changes in the route structure
What are the main reasons for discrepancies between ton-mile and ton demand in tanker industry?
The closure of strategic routes and changing structure of oil demand pattern
What is the average haul of crude movements around 1990-2000?
$5,000$ miles
What type of tankers are dominant on long haul crude oil movements?
$VLCC$ and $ULCC$ tankers
In the context of the tanker industry, what is the primary purpose of moving oil?
To add value to the commodity
How is the demand for transporting oil related to the production process?
It is part of the production process
What type of demand drives the need to move oil in the tanker industry?
Derived demand
This quiz explores the concept of derived demand in the tanker industry, emphasizing that the need to transport oil is driven by the goal of adding value to the commodity and its role as a factor input in the production process. It also delves into the measurement of oil demand in terms of quantity and distance traveled.
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