Shipping Costs and the Controversy Over Open Registry
Journal of Industrial Economics (Impact Factor: 1.04). 02/1986; 34(4):409-27. DOI: 10.2307/2098626
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- "Better knowledge of how to specify underlying cost functions emerged as more flexible equation forms (most notably trans-log and quadratic specifications) were developed and parameter estimation improved as more efficient econometric procedures were devised. Such improvements were fairly rapidly adopted in maritime analysis[66,67]. Network effects have been given rather less detailed consideration in shipping economics, certainly compared to sectors such as air transportation or telecommunications . "
ABSTRACT: There have been significant changes in the nature of shipping services in recent years. These have been most notably in the liner segment, but other parts of the market have not remained static. Technology shifts have been responsible for some of the change, but there have also been developments in institutional structures and managerial approaches. The economic drivers behind the sector, however, remain relatively poorly understood, despite a copious literature on shipping. Managerial economics has tended to put emphasis on the emergence of more sophisticated logistics structures and the role of information to tighten the overall supply chain. Industrial economists have been concerned with technical change and in particular with its interaction with more liberal markets structures. Often tied with this has been interest in the underlying nature of shipping markets (e.g. competitive, monopolistic or contestable) and, depending on the outcome, whether there is price leadership, collusion, predatory behaviour or whatever. Much of this work has been aspatial, treating shipping as any other industry with distance between demand and supply ignored or incorporated in a very simplistic manner. Environmental economists have focused on matters of fuel efficiency and pollution. This paper takes a broad overview of shipping economics in the context of the larger institutional framework within which it operates. It seeks broader analysis within an institutional economics framework, but also highlights some of the problems of achieving this.
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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).
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