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Premium "peak" pricing
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<blockquote data-quote="zubenelgenubi" data-source="post: 4289187" data-attributes="member: 63706"><p>This is business 101. Supply and demand. When supply of shipping capacity is diminished due to greater demand, price should go up. This allows for more investment in infrastructure in order to increase capacity. But, you always have to be aware of competition. When shipping prices go up, they attract investors looking to get a piece of the larger pie. More competition means more capacity, which means supply outpaces demand and prices drop. There are also limiting factors, such as bottlenecks that cannot be eliminated due to regulatory constraints, or contracts we have with shippers.</p></blockquote><p></p>
[QUOTE="zubenelgenubi, post: 4289187, member: 63706"] This is business 101. Supply and demand. When supply of shipping capacity is diminished due to greater demand, price should go up. This allows for more investment in infrastructure in order to increase capacity. But, you always have to be aware of competition. When shipping prices go up, they attract investors looking to get a piece of the larger pie. More competition means more capacity, which means supply outpaces demand and prices drop. There are also limiting factors, such as bottlenecks that cannot be eliminated due to regulatory constraints, or contracts we have with shippers. [/QUOTE]
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