Why Ships Got So Insanely Big
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Lastly, let’s put shipping containers on the global economic leader board.
Yes, he missed out how the shipping container made posts so efficient and that the door to door delivery, truck, ship and truck again, massively dropped the price of moving good around the world.
@@brisbanebillmachine like head is what you will receive bill. For free bill. 😮😮. No bill for bill.
So. Bill. Are you down on this journey with my little sister❤? Yes or no.
@@brisbanebillhu
Did I miss the part where he explained why less globalization is good or did he just talk about shipping and supply chains the entire video?
The title of the video is probably gonna change in a few hours
He constantly does this, and it's annoying as heck. He never gets to the point of the video and just side tracks the whole time. It's typical investment banker bait and switch.
He says it in the last two minutes.
14 minutes in
Yes, what a bait and switch.
Uhhh seamen
Followed by "bigger was better"
yum
Highly trained
It's Sea-man!
Siemen..s
You got close but no cigar on explaining the square cube law. A ships mass will scale pretty much in line with it's cargo capacity. The scaling advantages you get with a bigger ship are that proportionally the loads from waves become smaller and stuff like hull plates don't get proportionally bigger on large ships. Where the square cube law really kicks in is that most of the resistance to the ship going through the water comes from skin friction. Surface area under water is proportional to length squared, carrying capacity to length cubed. Also larger ships are in proportion to their size smoother. Ergo they use much less fuel. As an aside sailing ships didn't use particularly large crews often less than 20, this is why sailors didn't mind being pressed into navy service as they would have a crew of hundreds on a warship and a ship that could be operated by dozens so life was actually quite relaxed.
One of the biggest factors is crossectional area, so long ships are very efficient.
Well said; I came here to say the same thing regarding wetted surface area.
@BackseatGamingJesus now add that to the fact that many of the older ships were scrapped and their raw materials were put again on the market. Of course, everyone wants to build larger ships.
What can happen in the future is we see less of these ships due to a less globalized world, which could also mean we'd have even bigger ships to carry more with less costs.
"Didn't mind being press ganged" was a funny part.
Sure, there was less work to be done on some HMS, compared to a merchant ship. The problem was the payment, which was significantly lower, sometimes orders of magnitude lower. So, with the exception of serving under command of exceptionally effective and lucky commander, who will ensure you'll got compensated for a poor salary with a lot of prize money, serving in a navy was a sure way to poverty.
So no, most of the times sailors didn't really liked to be press-ganged, unless they already were good-for-nothing drunkards.
Nice job!
Lowering the costs of transportation is important for cargo or people. Shortening supply chains is NOT anti-globalization.
The real world, non-dictionary, definition of Globalization is the offshoring of jobs and materials from developed nations to less developed. That’s how globalization has played out over the last ~40 years.
Crude oil is absolutely not fungible. For example, American refineries are set up for the type of oil from the middle east (and formerly northern Appalacia). They cannot handle oil from the Dakotas or Canada. All that has to get shipped to refineries in Mexico or SE Asia. So despite North America being net oil exporters, we are still nearly 100% dependent on imported oil.
8:30 I was about to say the same thing. Oil has sulfur-content and density properties which affect products of its refinement and what refineries can handle it.
While you are sortof right about crude not being completely fungible, the refineries do have some play with the make up of oil they can handle. You should really double check your source on refineries; while many of the ones in the US were originally setup to handle middle east oil, today there's very little oil from the middle east being imported to the US. Crude from Canada and Mexico make up over 70% of the US crude imports, so clearly, they can handle oil from Canada. The whole fight over the Keystone pipeline was so they could transport Canadian crude to US refineries cheaper.
@@xungnham1388 I'm also under the impression that the oil from Middle East mainly goes to Europe or China.
@@xungnham1388 ew, Canadian oil 🤢. Have we no morals.
The true NFT
14:08 I live there! My father lead the construction the shipping cranes in this clip.
Small world, huh.
I think I had an unrefined and vague intuition about this when I was just a small child. I remember my mum pointing to a spot and saying that's where the old washing machine factory was, near the cardboard box factory. The factories shut down and were moved overseas, and now all the jobs in the area were white collar/office jobs. Because all the jobs in the area were of a certain type, the local economy slumped for everyone but those who already worked in the offices, since most of the new office jobs were filled by people who moved to town for those jobs. Now there's some Mexican city where you can only be a labourer, and the local economy has nowhere for labourers to work - essentially wasting the labour pools of both places.
If goods can be more cheaply made overseas if the factory or mill is right next to the mine or whatever, then by all means, that makes sense. Sometimes the lower cost of shipping offsets the high cost of labour, but in the case of the city where I grew up, all the local factories were shut down because it didn't want to be the kind of city that had dirty laborers in it regardless of the actual economics. I feel like that attitude is disappearing, and that the cost of shipping and labour aren't so far apart anymore. Obviously, my feelings are nothing compared to solid economic analysis though 👍
Inflation and minimum wages making labourers cheaper eh?
@mehedi1178 In The West? Obviously not. I was talking about lower production costs at whatever location the factories are moved to. But impoverished countries do eventually industrialize themselves, so unless the long game is to keep every country poor there will theoretically come a time when cost of labour v cost of shipping won't be so obviously tilted.
This is indeed probably the most important aspect of globalization that the media always manages to ignore.
Good living standards usually come with well balanced labor markets that provide opportunities to labor with diverse skillsets.
Globalization can indeed provide manufacturers with the opportunity to specialize production to one location (for example 70% of high performance semiconductor chips are manufactured in Taiwan), but it can also provide employers with the opportunity to adapt to the needs of local labor markets. For example a car parts manufacturing factory might be able to open a new plant in a city 500km away, when the pool of available laborers has been depleted in the primary location.
A significant hit to globalization might ironically force a significant amount of people to leave their villages, move cities or even countries/continents.
My mam*
Proper British word for mother
I suspect it was the dirty factory and not the dirty labourers that were the main reason why the city didn't want the factories there.
NO!!! WITHOUT GLOBALISATION HOW WILL I CONSOOOOOM!!!!!!
Consume 😂
Just out of curiosity, what device did you type this on?
eerrrrm you hate soceity.. then why are you living in one... checkmate librul@@sheeshshoot123
-he said as he looked out over his sea of empty soda cans and disposable microwave dinners. "I'm not like other consumers I'm different and special" he said as he went back to his 8th hour being on the internet.
@@sheeshshoot123A refrigerator
That was a top teir ad transition. Linus would be proud.
I am so early the Evergreen hasn't got stuck in the Suez canal yet.
.......
How do you know?
Just make Gigantic highways in the middle of ocean and connect it to all countries so truck can be used instead of ships
Yeah, nope, it would take too long and cause too much pollution.
Trucks are less efficient than trains and trains are less efficient than ships
^ the sarcasm flying over these two’s heads
Lets call it the Freedom Highwayᵀᴹ. Big freight containers can't be just lumped on a single ship(its so communism), they deserve FREEDOM. With a Ford/GM truck people can freely load/unload their Amazon parcels anytime/anywhere.
@@Sam-bp2st Yeah but boats aren't efficient going from the east coast of the US to the West coast or vice versa. Strange thing they need water.
“Highly trained … uh…. Seamen…”
Can you make a video talking about the amplification of high-interest rates on developing economies
They take out loans, don’t play or have shaky payments, next loan will be higher interest. Rinse and repeat
Then they go the IMF for help while blaming the IMF for worlds problems. Rinse and repeat
Opinion on Georgism or the Land Value Tax which Milton Friedman supported?
Land value tax has existed for a long time. Taxing only land is stupid for example you can build a large data center on a small patch of land and you will pay very little tax running a company like google but the farmers that supply everyone food will always need hectares of land.
Property taxes always get passed to renters. It's difficult to accomplish any productive incentive structures with property taxes.
@@LevNikolayevichMyshkin Is your example really a problem? Farmlands far from cities are usually cheap, and i doubt there would be much competition between datacenters and farmers, datacenters don't need much land. Also, you can still have regulations in Georgism, so if a datacenter wants to build something on a very fertile land, where agriculture would make more sense, the government could deny that.
@@MeisVlk If all you tax is land (Georgism) then you will tax google less than a guy growing 50 tonnes of potatoes. It does not matter how cheap farmland is the amount of land that is needed for agriculture is far more than what is needed for a far more profitable business. By taxing land and nothing else you are giving up the tax revenue you would otherwise get from for example google because they can build their data centre pretty much wherever they want and it will never need as much space as a farm.
@@LevNikolayevichMyshkin i was thinking that google needs a place where you have infrastructure, security, a lot of people => high land value.
But i admit it sounds super complex. Where would hairdressers and shops be? They couldn't pay that land value.
=> Would they rise their prices? A beer would cost 200x more in the city than in the area around the city?
=> Then everybody would purchase beer 50km from their workplace/home?
=> But maybe then google would have to pay for places where its workers can buy cheap beer?
=> Google would pay a lot afterall?
Sorry i am a noob at economics but i really want to understand georgism, it would be awesome if it could work
Dude I watch a lot of sh*t on CZcams, and I’ve never said this before. I REALLY appreciate you.
Keep up the good work.
From Byron Bay.
Notes: bigger ships can carry alot more so cheaper in bulk, and are only limited but the initial finance of the constant or the size of the shipyard/docks, or by cannels or water straights.
But if there is not this large demand then its more efficient to use smaller ships
I think not many people understand that the standard 20 and 40 foot containers are by far the most important invention of the last century. Forget nuclear power, the Internet... Having nearly everyone agree that we do shipping now differently than we did for the rest of human history... Its crazy
I do think that Africa's position is such that it could reasonably export to various South American, Asian and European Countries among others if the infrastructure existed. The problem is that it currently does not, and it is unlikely to for some time.
The issue alongside this is the lack of skilled labour and stability. Right now you have active conflict from Gambia to the Port of Sudan and north to Libya, and very hot spots in Ethiopia (which is one of the more successful stories) and Rwanda (also more successful)- Congo.
And South Africa, well the issues in the economy there are well known.
Boils down to Africans can't do it, Europeans don't want it.
Same reason there isn't a bridge or tunnel connecting Europe and Africa like there is England and France
Africa has historically suffered from a dearth of viable port locations (relative in proportion to its coastline)
@@adamperdue3178 a great example for OP to look into is Namibia. Such a long coast line, but the country is pretty inhabited by the coast, everyone lives inland. The coast is all arid sand dunes and deserts and nowhere suitable for a deep water port.
@@f.g.9466 See I had actually heard (and I could have misremembered or the person telling me was incorrect) that Namibia actually has some of the best waters for ports in all of Africa. Except that the areas where the water is viable for ports, are so sandy that it would be nearly impossible to build out the infrastructure, and so far from inhabited areas that nobody would be able to work there.
Calling an USB Stick basic is very surreal.
This channel is fantastic
Thanks
Better video than your latest trend. Thanks!
Shipping has always been the most efficient mode of transport
The Ocean is an infinite lane highway that requires zero maintenance.
Can we please get a Milei video?
Can you please do a video on the Mongolian economy and mabey Menton how they helped the soveits in ww2
Please make your videos have chapters tags 🙏🏽
That's my favorite flash drive so far, the Type A/C Sandisk lol
"...was an indication to businesses and policy makers that this status quo wasn't something that could be relied on." Ha. I think you give them too much credit. After the pandemic, they went right back to thinking endless growth and the status quo would go on indefinitely.
You should do one about how shipping containers has changed economies
At the 8:01 mark, why did you pause before saying, seamen?
Because of its homophone.
Really cool to see a different trend than aviation which larger jets get less favored
Aviation is subject to vastly different market forces. Shipping cares a lot about cost and fuel efficiency. Aviation had only ever been able compete on time-sensitive cargos, so it favors small vehicles making direct trips over more efficient networks that use less fuel and cost less but take longer.
history section of this video should've mentioned container.
To make more money 0:17
i know ships carry an unfathomable amount, but i had no clue they were that efficient, thats crazy that they are much better than the already crazy good rail road with steel on steel
could a video be done on the trans Siberian railroad and economic affects
Nice
I want video about australia ❤❤❤❤
I think the history section of this video should've mentioned the invention of the intermodal cargo container.
Yeah, that's arguably a bigger factor than anything other than ww2
If you make enough of something you can drive the cost of its production to its commodity index, Adam Smith's Wealth of Nations. There are thousands of Business School case studies that prove this concept.
Globalisation only works if the G20 export the same value as they import, otherwise each nation is just paying for imports from the bigger economic powerhouses that can afford to max out its exports reducing the amount of available capital still in the domestic market.
We are on the cusp of a manufacturing revolution with both AI and 3d printing alongside the software needed not being geolocated therefore massively reducing the need to rely on other nations to supply. It's going to be a case of who can come up with idea X first and then who can do it most efficiently by X means, not really much who has X amount of low cost labour.
I love how all the USBs go through shenzhen
TLDR: costs of the boat don’t scale linearly with the cargo capacity. Bigger = cheaper and more fuel efficient.
What happens when manufacturing becomes more automated? And labour costs are a smaller percentage of total costs?
Couldnt agree more.
"The crews of these ships needed to be well compensated"
Ot you know, gang pressed, enslaved, or otherwise coerced
You know how a characteristic of public goods is that the initial capital investment into producing them would be to high for any private firm to raise, like with rail for instance.
I wonder if this is what's happening to global shipping. What if in the future global shipping will be akin to rail in many countries today.
08:01: He, he... "Sea men"
Calum Raasay did a great video on shipping containers last year that I'd highly recommend as a follow up to this video.
Interesting
More eu content please
5:44 what is the name of left company. The VOC is dutch. I presume the left one is England 🏴
EIC
@@bepamungkas thank you
first comment
You guys are taking a lot to release new videos.
Agreed
Just a video idea after watching the recent one on the EU; Why don't Australia and NZ share a tasman dollar (or NZ takes on our dollar?) There's a few papers on it but they're around 25 years old.
What would be the benefit to make the transition worthwhile? I'm guessing AU (as the larger economy) doesn't have much incentive to change so NZ would have to adopt the $AU. How would that benefit NZ enough to bother?
Any chance of a review of Israel and Gaza as a comparative?
please put timestamps for the ad so I can skip it
👌👌
"Shocking" discovery.
So what is the “Megaship dilemma” in the thumbnail?
Not a comment on the video theme but something is wrong with the audio. Lots of hitching in the first few minutes even after i closed out YT and restarted the video.
It was only on your end. It played fine for me.
Jones Law ruined US shipping
Uhm, actually, oil is not quite as fungible as stated. You can end up with either sour or sweet oil (if I recall the terms correctly) and it makes a spectrum from one to the other. The problem is, you need to buy oil of certain characteristics in order for refinery to be able to refine it. For this reason, East coast of the US exports crude and imports crude as well, because local refineries mostly can't process the crude they can get continent side. In order to be able to process that oil, they'd need to retool them selves.
Sweet or sour refers to sulphur, which is one of two characteristics, but you also have API which is the density. Higher density, or heavier, oils tend to produce a higher ratio of heavier petrochemical (more diesel less gasoline). The bigger reason the east coast exports is very light Bakken crudes, whereas the refineries were built for heavier (but not "heavy") Brent oil, so running on Bakken would reduce capacity. It has less to do with Sulphur content.
Gulf oil refineries on the other hand are built for the heavy sours of South America, and Midwestern for the even heavier, and less evenly distributed in molecular weight, DilBits from Canada.
Which isn't to say you are wrong just adding some color. The other point to remember is that refineries generally have storage, and can mix several different crudes with more or less API and Sulphur, to approximate what your design crude is like.
Basically NATO is really really alarmed by more competitive economics from Asia
If by Asia you mean China yes, the US is vocally concerned about China.
The only channel i actually listen go at x1 speed 😂😂
COVID, the Suez Canal Crisis, china‘s pressure on Taiwan… are only some examples why spreading your supply line too thin, can be very damaging in the long run
I love shipping
Less Globalization being a good thing should actually be common sense.. Unless you're a professional economist with a PhD or a member of the WEF (in which case, you don't want to bite the hand that feeds you).
What does all this have to do with fish and chips?
highly trained seamen
BASED STATEMENT!
8:01…
I guess we'll just be stuck with $50 flash drives again soon.. but hey! They'll be they'll be domestically made!
All out of idea's boys, how should we make our next video?
Word salad, sneak in advertisement, word salad.
Job well done.
Yes, i know the saying that nobody can predict the future, least of all economists, but I don't understand it. I think economist would predict the future better than most people. What am I missing?
This is referring to how often economist have been just incredibly wrong
@@Nothing2150 I agree with that, but I think economists could predict the future better than a toddler. I don't know, it rubs me the wrong way when he says that or maybe I'm just too autistic.
economists are often more right than most, but they're also often more wrong than most.
@@dead-claudia because they try to predict the future, while most others don't?
You know what the difference between an economist and a fortune teller is?
Sometimes fortune tellers are right!
Peter Zeihan was right again!
if only there was a ground news of economics, you could call it dirt cheap
Took me a second... :)
Square cube law. Done.
Mariners. Let's use the word mariners.
⭐
How much is the drive without globalization
Our whole planet's gone, Bazaar
Silk roads on the seas
There's no such thing as far
But for stars and galaxies
Villian passing vendors
Like ships in the night
They can still remember
Exactly what it was like
Caravans of camels
Laden with great treasure
Silent spiritual vandles
and theives without measure
But IF you reach that great Bazaar
And settle up all your debts
You realise that's about as far
As the silk ever gets.
I imagine if we can ever make better batteries that weigh a lot less than current batteries, maybe we'll have automated quad-copter drones transporting goods and people around the world! A man can dream, at least.
😮
nice knowledge of how to exploit the human psyche
This guy reads the comments.
Congratulations on tackling the up talk. It makes a gigantic difference.
If you had just built them in space, you could have increased the quality, and decreased the emissions on Earth.
The amount of extra carbon burned in the race to the bottom of cheapest labor/regulations is obviously superfluous and unnecessary.
Anybody else this this was a Wendover Productions video before they clicked?
Off topic, but still important: could you revisit your Why Africa is poor video, as there are plenty of historical mistakes in it? It would mean a lot to the people with origins from the continent
He could but he will never be able to give you the true answer. He's an economist and for that you would need the kind of sociologist who has long since been blacklisted for wrong-think.
It’s basically geography that impedes transportation, and weak civil institutions. The argument of Western intervention only gets weaker with time if African leaders continue to rule their realms through tribalist kleptocracy.
When you need some money but don't have a video idea
I like this better than "here's a really basic over view of some country"
Love the title 🎉 it’s time to backwards and develop own economy by area
It doesn’t stop in India, it stops in Sri Lanka
is that a question that even need to be asked? why did the pyramids got so big? why do we enjoy monster trucks? why massive pets and even wild animals look awersome to us?
at this point, it should be a rhetoric question, since pretty much everyone already knows the answer...
USB Memory stick is a bad example
there actually insanely complicated to manufacture. not simple devices at all
It’s best example because it’s complicated, yet it’s dirt cheap!
B O A T
Small countries suffer. Towns suffer more. Citizens suffer the most. Almost whatever you wanna do in your life, there's always someone doing it cheaper. It's bad enough as it is with accumulation of money through Capitalism. We are increasingly becoming ants in a gigantic ant colony, and there's currently no way out.