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Port of Oakland's Uncertain Future

Hello,

I am analyzing a case study on the Port of Oakland and am a little confused. I was wondering if you could help me with the following questions:

5. What is uncertain about the future?
a. Concerning trade with Asia?
b. At the Port of Oakland itself?
c. In other ports?
d. In Panama?
e. In "consumer behavior" where here the "consumer" is (i) the shipping lines and (ii) the importers

6. For each of these uncertainties what would you monitor and what metrics would you observe?

7. What are some of the strategic choices that the Port of Oakland can make, that is, do or not do?

I am hoping to really understand this case through these questions. Thank you!

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Hope this helps. Please let me know if you have any questions.

. What is uncertain about the future?
a. Concerning trade with Asia?
A large amount of the Port of Oakland's trade is exports to Asia. This is due to its geographic closeness to Silicon Valley and the fruitful Central Valley. However, it is not certain if this trade will continue to prosper as China works to replace these American exports with local products. Also, China manipulates the value of its currency, and depending on which way it does this impact imports/exports.
b. At the Port of Oakland itself?
It is uncertain whether the Port of Oakland will continue to be competitive with other options. If a ship can dock once in California (at either Los Angeles or Long Beach) it doesn't make sense to also dock in Oakland. In addition, Oakland has a negative reputation in terms of labor strife. The port has been shut down several times in the last three month. The port's truckers are currently picketing. The port faces competition from newer, smaller ports that are able to be more nimble. These issues add up to questions the future of the port based on its' inefficiencies, geographical location, and poor ...

Solution Summary

This detailed solution discusses the uncertainties the Port of Oakland faces in terms of trade with Asia, the Port of Oakland itself, other ports, the Panama Canal, behavior of the shipping lines and the importers. It provides items to monitor and metrics to observe, and offers some strategic choices that the Port of Oakland can make. Includes reference.

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