SWM wrote:But most freight in the Honorverse is contracted deliveries. There is no race to get to the destination to beat the competition. And the people paying for delivery aren't going to pay 50% more to have it delivered 30% faster if they don't need it 30% faster.
How much of freight is contracted today?
Next to none outside of oil/coal/iron ore. Only bulk cargo is with a flat fee as those are very long lead items that do not vary much. So, if you believe what is being shipped in the Honorverse is mostly oil/coal/iron ore or its equivalent, Ok then you have a point.
All other cargo is not that way and never has been that way. TEU shipping prices vary day to day. It certainly is NOT fixed. The market is waaaayyyy too volatile for that and we have light speed communications! It will be even worse in the Honorverse. Ships will not know where their next load is coming from, how much, or how fast they need to deliver the load in. Yes, they will have a crude idea as routes will be established that generally have 'z' amount of cargo going to destination 'T'.
Today it goes like this:
0) Manufacturing Company ships TEU for "x" on a GUARANTEE it will arrive in "Y" days. They could even pay more for a faster GUARANTEE. And all contracts have steep penalties for late shipment, or require Huge sums of money for insurance to cover beyond general product insurance. Having the easter egg candy arrive too late is a rather stiff penalty. Having those Kitchen Aid mixers arrive late makes angry customers.
1) Terminal takes a "handling fee". Terminal is now responsible for the GUARANTEE it will arrive in "Y" days. Be it a private terminal owned by Hapog Lloyd, Hanjin, or the state.
1a) Different terminals have different handling fees. Shipping companies hop around.
2) Ship arrives, unloads. Its parent company has already been talking to the terminals to find out what may be available. In the Honorverse this would be done AS they come in system. Parent company negotiates a price point with the TERMINAL. Shipping company is now on the hook for the GUARANTEE delivery date.
Above is from the Guarantee side of things. How do freighters Operate? They have routes that they run continuously with alternate stop points that they arrive at less frequently. They try to remain as full as possible. Reality is that except at end destinations of regular route, freighters operate generally around 70-80% full. They also have competition on those same routes who are willing to do it cheaper, or guarantee a faster delivery date.
A faster ship will be able to not only do its normal guaranteed delivery date, but also stop at the alternate destinationsas well who might not have an enormous amount, still have plenty and will gladly let you take it off their hands as they were sweating their guarantee delivery time, creating a fuller hold percentage and higher gross returns.
A faster ship can pick up those guarantees and thus those bonus's that another shipping line failed to pick up because they were already full, or would not arrive in time. Said bonus cargoes today can run upwards of 3X what normal cargoes do. Shipping companies if they cannot meet their guarantee will auction off their guarantee to other shipping lines so they do not eat the steep penalties.
If you want more in depth of how shipping works here on earth. Check out your local Shipping exchange be it Seattle(puget sound), Shanghai, Baltic, etc.
No, I am no expert on this subject matter but I have had to ship many TEU's internationally and had to figure it all out so I didn't screw my company over and get my ignorant butt fired.