Week 6: The Shipping Industry - A Case Study

What is a major factor in realizing the benefits of liner shipping?

What drove the growth of larger ships in the liner shipping industry?

What is a significant benefit of new ships in the liner shipping industry?

What is a major cost component in the liner shipping industry?

What is a growing concern for the liner shipping industry?

What percentage of liner shipping services involved ports in Asia?

What is a result of investments in port infrastructure?

What was the primary focus of smaller shipping firms in the liner shipping industry?

What was the growth rate of container volume in the liner shipping industry after 2020?

What posed a threat to the liner shipping industry due to changing trade patterns?

What was the consequence of the COVID-19 pandemic on global trade and shipments in the first half of 2020?

What has been a persistent issue in the liner shipping industry since the 1990s?

What is a key factor that influences the bargaining power of buyers?

What is a threat to the profitability of an industry?

What is a factor that can affect the threat of new entrants?

What is a consequence of high switching costs to substitutes?

What is the purpose of analyzing the factors that influence profitability in an industry?

What issue arises due to the lengthy shipbuilding process mentioned in the text?

Why did liner shipping firms struggle to provide value-added logistics services?

What was a significant challenge faced by container usage, as per the text?

What did the Chinese government aim to achieve through substituting Europe-Asia shipping routes with a land bridge?

Why are ultra-large container ships with capacities up to 23,000 TEUs favored?

What was a major government action to support national shipping lines, as mentioned in the text?

What was a significant impact of the Suez Canal blockage in March 2021?

Why were the majority of ship orders in 2021 for ultra-large ships?

What are industry experts optimistic about despite ongoing challenges?

Which factor in Porter's five forces model influences profitability through elements like concentration and product differences?

How does Supplier Power in the industry affect profitability according to the text?

Which aspect of industry structure impacts profitability by considering elements like labor cost and ports' power?

The top five firms in the liner shipping industry hold more than 80% of the market share.

Large corporations like Walmart account for a significant share of global shipments in the liner shipping industry.

Customers in the liner shipping industry are highly loyal to specific shipping companies.

The shipbuilding industry has experienced undercapacity since 2000, leading to increased prices.

Customers in the liner shipping industry are insensitive to prices, particularly concerning shipping costs.

The majority of liner shipping firms have been able to provide value-added logistics services to their customers.

The liner shipping industry experienced a decline in global trade and shipments throughout 2020.

About 75% of liner shipping services involved ports in Asia.

The liner shipping industry's growth rate in container volume exceeded demand since the 1990s.

Governments aimed to reduce reliance on trade for future global growth through reshoring and local sourcing.

The hub-and-spoke system is used by large shipping firms to transfer cargo between major ports.

The liner shipping industry's capacity consistently met demand since the 1990s.

Over 90% of container ships are constructed by firms from South Korea, China, and Japan.

The lengthy shipbuilding process typically takes about a month.

The prices of containers decreased from 2019 to 2021.

Liner shipping firms successfully expanded into logistics services by the mid-2010s.

The Chinese government's endeavor to substitute Europe-Asia shipping routes with a land bridge did not face any infrastructure development challenges.

Ultra-large container ships with capacities up to 10,000 TEUs are favored for their potential economies of scale.

Majority of ship orders in 2021 were for medium-sized vessels.

The Suez Canal blockage in March 2021 had a positive impact on the efficiency of supply chains.

Industry experts are pessimistic about the sector's resilience.

The liner shipping industry has not faced any financial, technological, or regulatory challenges.

The demand for new ships in 2021 was at its lowest level in a decade.

Industry experts anticipate future capacity expansion and market growth with the majority of ship orders being for ultra-small ships.

Buyer concentration, buyer volume, and buyer bargaining power are factors that influence the profitability of an industry.

Access to proprietary inputs by new entrants is a factor considered under the Threat of New Entrants in Porter's Five Forces model.

Buyer propensity to substitute and switching costs to substitutes are considerations under the Threat of Substitutes in Porter's Five Forces model.

Reshoring and local sourcing impact the profitability of an industry by reducing international trade.

Higher buyer bargaining power typically leads to increased industry profitability.