Since the 1970s, we have witnessed ever-changing demand for tankers due to external forces such as the environmentalist lobby or politicians. Today political events, oil exploration, and oil substitution are impacting the tanker freight rate. Using an appropriate example, illustrate how this event influenced the freight rate of tankers over the years (Can be a specific year or several years).

Since the 1970s, we have witnessed ever-changing demand for tankers due to external forces such as the environmentalist lobby or politicians. Today political events, oil exploration, and oil substitution are impacting the tanker freight rate. Using an appropriate example, illustrate how this event influenced the freight rate of tankers over the years (Can be a specific year or several years).

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter8: Understanding Markets And Industry Changes

Section: Chapter Questions

Problem 8.3IP: Hand Sanitizer Due to the H1N1 flu outbreak, the demand for hand sanitizer has tripled. Should...

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Hand Sanitizer Due to the H1N1 flu outbreak, the demand for hand sanitizer has tripled. Should Johnson & Johnson increase production of their Purell hand sanitizer? Should it invest in doubling production capacity?
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Consider the following scenario: In Great Britain, the electricity system operator publishes a wind generation forecast of 14 GW for 7 PM on the next day. On the morning of the next day, the electricity system operator revised its wind generation forecast for 7 PM down from 14 GW to 11 GW. Do you expect the wholesale electricity market price for 7 PM to increase or decrease at this time? Explain your answer.
The A Index is a proxy for the world price of cotton. From January 2019 to October of 2019, the price reflected by the A Index increased about 80%.Provide two separate explanations for this price increase using shift in supply or shift in demand.What one piece of information would allow you to decide which of the two is a better explanation?
The price of raw sugar reached its highest level since 1981 due to problems with supply. Historically, raw sugar has traded at between 10 and 12 US cents per pound at the New York Board of Trade. But the price increased to over 18 cents last month. Growing demand in Brazil for sugar to be turned into ethanol for fuel, coupled with a sharp fall in Indian production have both been factors in the price increase. Sugar production in India for 2008-09 fell 45% year-on-year due to less rain in the monsoon season damaging a number of agricultural crops.The London-based International Sugar Organisation predicts that global consumption of sugar is likely to outstrip production by 9m tonnes next year, forcing food companies and governments to dig into stockpiles. In the US, snack producers including Mars, Nestlé and Krispy Kreme Doughnuts put pressure on the US government to relax import controls, warning that otherwise, they might run out of sugar.Commentators predict that most shoppers will…
Summarize this While the major economies slid into recession and industries suffered great losses to the COVID-19 pandemic, E-commerce sales saw explosive growth. In this rapid movement of consumers to online purchasing and delivery services, there has been a large increase in the demand for packaging materials, such as cardboard boxes. Supporting this, Parcel Shipping Index by Pitney Bowes Inc. (2020) finds global parcel volume exceeding 131 billion, a 27% increase from 2019. Corrugated cardboards are largely and versatilely used for secondary packaging of goods, up to the tertiary packaging of large packs into mass cargo (Saxon Packaging, 2020). In addition to its relatively low cost, its strength and durability are also remarkable in protecting a variety of products from damage, notably during the shipment process. Given this, businesses have been largely reliant on the material as a practical, secure, and sustainable way of containing their products from production centers to…
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