Titlebook: Liner Shipping Economics; J. O. Jansson,D. Shneerson Book 1987 J.O. Jansson and D. Shneerson 1987 container.elasticity.growth.optimization

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Ship size and shipping costscause an adequate frequency of sailings cannot be maintained with too big ships? This is only part of the truth. In this chapter we go into a more fundamental reason why ship-size economies cannot be realized to the same extent, by far, in general-cargo shipping as in bulk shipping.

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Shippers’ costs of sailings infrequency and transit timeIn chapter 5 we have already dealt with the interest costs of cargo in transit. In this chapter we move ashore and examine some other items of shippers’ costs which will rise by a lowering of the sailings frequency and/or increase in transit time.

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The freight rate structure is out of line with the marginal cost structureIn this chapter we will show in what respects, and to what extent actual freight rates deviate from the marginal costs. We start by outlining the costing principles which should underlie a cost-based tariff of freight rates, which will serve as the basis of comparison for the following examination of existing tariffs.

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