Shipping Costs and the Controversy over Open Registry.
- SourceAvailable from: Michele Acciaro[Show abstract] [Hide abstract]
ABSTRACT: The development of logistics has offered a wide range of new business opportunities for transport operators. Shipping lines have been taking advantage of these opportunities and have expanded their business scope beyond the movement of cargo, to include, for example, coordination among transport modes, route rationalisation and even value added logistics services. Carriers offer today transportation as part of integrated global supply chain solutions in an attempt to provide a better service to their customers as well as improve their bottom lines. This appears to be a winning strategy since an increasing number of industry players are investing in logistics operations and infrastructure. The offering of products and services jointly as a package or bundle is a common marketing strategy in a variety of industries and also appears to be a successful strategy for enhancing shipping lines’ competitiveness and profitability. Only limited research is available though to better understand under what conditions such bundled sales are possible; what attitude shippers show towards this industry trend; how bundling strategies could be developed optimally; and how they could be priced. This thesis is a contribution to research in this area and provides an analysis of the viability and the benefits of bundling strategies in the container industry, and specifically with reference to the joint provision of ocean transportation and other logistics services.
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ABSTRACT: Data weaknesses coupled with the lack of a rigorous modelling framework have limited detailed, econometric analysis of international shipping costs. By combining cross‐sectional survey data with simulated variables this article examines the cost functions associated with bulk carrier and tanker operations. It adopts a flexible form of economic cost function to circumvent the restrictive nature of the few previous studies which have been conducted. The paper looks at a number of key relationships including factor substitutability in shipping supply, the existence and magnitude of scale economies and the impact of regulation on shipping costs. This is done both for bulk carriers and tankers. It provides statistical evidence relating to both management practices in the shipping industry and the ways in which these may be affected by the external environment.This work is based on a paper published in the Proceedings of the Fourth World Conference on Transport Research (Vancouver: Centre for Transportation Studies, University of British Columbia, 1987).Transportation Planning and Technology 06/1987; 11(4):311-321. DOI:10.1080/03081068708717352 · 0.43 Impact Factor
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ABSTRACT: The pull of economic gravity on traditional tanker operators towards open registries has been caused primarily by the need to be cost‐competitive in a market which itself is competitive. By using transcendental logarithmic cost functions to model the cost structures of open and traditional tanker operations, this study highlights the general structure of the production technology of tanker services, the cost differentials between the two flag groupings and provides insights into the comparative statics effects of their production functions in the form of elasticities of factor substitution and demand, and scale economies.Transportation Planning and Technology 12/1988; 12(3-4):239-254. DOI:10.1080/03081068808717376 · 0.43 Impact Factor