For the ocean shipping business today, it’s tough enough navigating the rough waters caused by economic cycles. But do carriers sometimes make their own waves?

Container shipping is an expensive business. Capital costs are immense, and ships must be planned and built well in advance of their entry into the trades. Matching supply with actual demand, therefore, can be devilishly difficult. Even so, have carriers in recent years introduced too much capacity, in the form of massive containerships that go begging for cargo when expected demand doesn’t materialize? And what about their penchant for slashing freight rates, which undercuts profitability even in the best of times? On this episode, we take a close look at the global shipping industry with Mary Brooks, professor at Dalhousie University in Halifax, Nova Scotia. She draws on decades’ worth of experience and research to put the current plight of carriers into perspective. It’s all about achieving a perilous balance between cost and service. Hosted by Bob Bowman, managing editor of SupplyChainBrain.

Look for a new episode of the podcast, which can be downloaded or streamed, every Friday on the SupplyChainBrain website and iTunes.

Show notes:

A slide presentation by Prof. Brooks on “Rethinking Competition Policy and Liner Shipping Regulation.”