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LTJG Richard Bruce
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About ten years ago, Wal-Mart was seriously interested in buying into China-USAWC liner services. I believe the high fuel costs discouraged them. For those unfamiliar, a weekly round-trip liner service to/from China may involve a number of ships to maintain the schedule. The revenue/expense of each ship varies for many reasons. Due to marketing/capacity/demand/etc. the ship operator rarely can fill the ship's cargo capacity. So, space is sublet to other shippers. Shipper who participate in the liner service agree to "profit share" among all ships. This is complicated, but it ensures a steady revenue stream. This is how Wal-Mart was going to enter the shipping business. They were thinking about buying a ship to join an liner service. If one ship proved successful, then more ships would be bought.
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CDR Manager, Korea Programs
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Interesting insights. Thanks, LTJG Richard Bruce .
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Lt Col Scott Shuttleworth
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Looks like a potential job for you sailor...get in on the ground floor with Amazon ship lines.
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PO1 William "Chip" Nagel
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SN Greg Wright Makes Sense, Taking it to the Next Level. Bordering on Monopoly?
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CDR Manager, Korea Programs
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When does vertical integration of your supply chain becomes a monopoly, PO1 William "Chip" Nagel ? Echoes of Standard Oil?
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