BetterThanLife
SOC-14 1K
Yes. Exactly. The ship has to be economically viable. Keeping away from the big stuff, the complicated stuff and the specialized stuff. Keeping down to the "standard" small, independent, trade ship. (The least common denominator) And the second easiest multiparsec jump capable ship for a party to purchase. (The Seeker being the easiest and the Scout not being purchased.) The ship under the per jump model doesn't make economic sense.
If I take your cargo and charge you Cr2000 per ton to go two parsecs I am saving you both time and money. I also actually can be economically viable. (I can see everyone saying but if it is only one jump then you aren't saving me money over the Cr1000 per ton per jump model.)
Here is your money savings. Without making multijumpships economically viable you are forced to ship on a jump one ship. Therefore to go two parsecs it takes you two jumps and Cr2000 per ton to get to market. It will also take you between two and three weeks to get there. (Possibly longer if no one is going from your intermediate destination to your final destination.) During the time between when your cargo is off loaded and loaded for its final leg you have to pay for wharehousing and for someone to watch over it and arrange for its next leg. And you also have to pay, though this is normally part of the cost of shipping, for transhipping your cargo. Any breakage during the cargo handling at the transship point is also your cost. Now find a ship going directly there, it gets there in one week, it doesn't have to be wharehoused, it doesn't have to be transhipped. Paying the same Cr2000 actually saves me money. Why should I have a problem paying the same freight costs? Further by paying Cr2000 per ton to get it two parsecs away also makes the Jump-2 ships financially viable and therefore encourages their manufacture and use. Which brings more markets to me for my goods, it also means my orders can be filled faster and with more, faster ships, I also get my orders faster. (Since orders are transmitted at the speed of ships.) Less lag time between when the customer wants the goods to when they get them. (Cuts the time in half.)
For the shrewd businessman that wants his company to grow and wants to expand his markets paying the same cost for a ship to get it there faster makes good business sense. Would you really expect to get to spend less to get it there? Sure once competetion was seriously thriving, but without the higher jump ships being economically viable then you won't get a price break.
As for bulk cargo carriers from big companies, etc. Show me how they make financial sense. I would love to see the stats on any jump-2 freighter that can make a starship payment on the per jump economic model. (And given the normal ranges of available cargo run at better than 75% capacity.)
I can't seem to find the right mix.
If I take your cargo and charge you Cr2000 per ton to go two parsecs I am saving you both time and money. I also actually can be economically viable. (I can see everyone saying but if it is only one jump then you aren't saving me money over the Cr1000 per ton per jump model.)
Here is your money savings. Without making multijumpships economically viable you are forced to ship on a jump one ship. Therefore to go two parsecs it takes you two jumps and Cr2000 per ton to get to market. It will also take you between two and three weeks to get there. (Possibly longer if no one is going from your intermediate destination to your final destination.) During the time between when your cargo is off loaded and loaded for its final leg you have to pay for wharehousing and for someone to watch over it and arrange for its next leg. And you also have to pay, though this is normally part of the cost of shipping, for transhipping your cargo. Any breakage during the cargo handling at the transship point is also your cost. Now find a ship going directly there, it gets there in one week, it doesn't have to be wharehoused, it doesn't have to be transhipped. Paying the same Cr2000 actually saves me money. Why should I have a problem paying the same freight costs? Further by paying Cr2000 per ton to get it two parsecs away also makes the Jump-2 ships financially viable and therefore encourages their manufacture and use. Which brings more markets to me for my goods, it also means my orders can be filled faster and with more, faster ships, I also get my orders faster. (Since orders are transmitted at the speed of ships.) Less lag time between when the customer wants the goods to when they get them. (Cuts the time in half.)
For the shrewd businessman that wants his company to grow and wants to expand his markets paying the same cost for a ship to get it there faster makes good business sense. Would you really expect to get to spend less to get it there? Sure once competetion was seriously thriving, but without the higher jump ships being economically viable then you won't get a price break.
As for bulk cargo carriers from big companies, etc. Show me how they make financial sense. I would love to see the stats on any jump-2 freighter that can make a starship payment on the per jump economic model. (And given the normal ranges of available cargo run at better than 75% capacity.)
I can't seem to find the right mix.
Originally posted by Hal:
Another way to look at the shipping costs for CT and anything based on it?
Two merchants each competing to sell their service of transportation. The J-1 Free trader needs to charge 1,000 credits per ton to be financially viable. Cost to ship a consignment of 10 dtons 3 parsecs via a J-1 ship will be:
3 x 1000 x 10 = 30,000 credits.
A Jump 3 ship has two choices. It can either charge the SAME rate as what the J-1 ship does and get it there faster (which is a plus for some shippers) or they can charge LESS than the J-1 ship but only enough that is economically viable for them to stay barely above water.
Why?
Because if one J2 ship exists with a monopoly on shipping, people will have to pay their price. When TWO or more competitors exist, they will try to steal each other's customers - and that entails a price war of sorts.
You can argue the point saying "Ok, the J3 ship can set prices that the others will adhere to - fixing the market IF there is enough work to go around. You'd be right too![]()
When enough people WANT to get into the market of shipping because it is THAT profitable, then yes, they will do so. It is the GLUT of shipping firms and services that will drive the market prices down. Since Traveller's 3rd Imperium is supposed to be a 365,000 day old environment, it is safe to assume that there are a LOT of mature markets there where the prices have been driven down to the bare minimum. Shipping that has become ultra efficient (read that as HUGE bulk carriers) can charge even LESS and remain finacially afloat.
Odd, but that seems to be precisely the environment that FAR TRADER discusses![]()