IDEAS home Printed from https://ideas.repec.org/a/kap/iaecre/v3y1997i4p388-39410.1007-bf02295217.html
   My bibliography  Save this article

Service contracts, rate discounting, and the future of shipping conferences

Author

Listed:
  • Richard Neel
  • Carl Gooding

Abstract

The objective of this paper is to assess the impact of service contracts and rate discounting on the future of ocean linear shipping conferences. As a result of increased competition between ocean liner conference carriers and nonconference carriers and excess shipping capacity in the ocean liner container industry, conference carriers on many shipping lanes are engaging in rate discounting and negotiating service contracts with large shippers to obtain additional business. Often, these service contracts are entered into without the prior approval of the conference. Will the use of discounting and service contracts lead to the end of shipping conferences? Using economic theory, the conclusion is drawn that shipping conferences are likely to be weakened but not eliminated as a result of these practices. Copyright International Atlantic Economic Society 1997

Suggested Citation

  • Richard Neel & Carl Gooding, 1997. "Service contracts, rate discounting, and the future of shipping conferences," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(4), pages 388-394, November.
    • Handle: RePEc:kap:iaecre:v:3:y:1997:i:4:p:388-394:10.1007/bf02295217
    DOI: 10.1007/BF02295217
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF02295217
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/BF02295217?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pirrong, Stephen Craig, 1992. "An Application of Core Theory to the Analysis of Ocean Shipping Markets," Journal of Law and Economics, University of Chicago Press, vol. 35(1), pages 89-131, April.
    2. Sjostrom, William, 1989. "Collusion in Ocean Shipping: A Test of Monopoly and Empty Core Model s," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1160-1179, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Li & Zhang, Rachel Q., 2015. "Cooperation through capacity sharing between competing forwarders," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 75(C), pages 115-131.
    2. Hayden G. Stewart & Fred S. Inaba, 2003. "Ocean liner shipping: Organizational and contractual response by agribusiness shippers to regulatory change," Agribusiness, John Wiley & Sons, Ltd., vol. 19(4), pages 459-472.
    3. Cullinane, Kevin, 2004. "7. The Container Shipping Industry And The Impact Of China'S Accession To The Wto," Research in Transportation Economics, Elsevier, vol. 12(1), pages 221-245, January.
    4. Ghosh, Sugoutam & Lee, Loo Hay & Ng, Szu Hui, 2015. "Bunkering decisions for a shipping liner in an uncertain environment with service contract," European Journal of Operational Research, Elsevier, vol. 244(3), pages 792-802.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lester G. Telser, 1994. "The Usefulness of Core Theory in Economics," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 151-164, Spring.
    2. Rau, Philipp & Spinler, Stefan, 2017. "Alliance formation in a cooperative container shipping game: Performance of a real options investment approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 155-175.
    3. Takuma Matsuda & Suguru Otani, 2022. "Unified Container Shipping Industry Data From 1966: Freight Rate, Shipping Quantity, Newbuilding, Secondhand, and Scrap Price," Papers 2211.16292, arXiv.org, revised Apr 2023.
    4. DAVID A. Butz, 1993. "Ocean Shipping Economics: Free Trade And Antitrust Implications," Contemporary Economic Policy, Western Economic Association International, vol. 11(3), pages 69-80, July.
    5. Mike Fusillo, 2013. "The Stability of Market Shares in Liner Shipping," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 42(1), pages 85-106, February.
    6. Margaret C. Levenstein & Valerie Y. Suslow, 2002. "What Determines Cartel Success?," UMASS Amherst Economics Working Papers 2002-01, University of Massachusetts Amherst, Department of Economics.
    7. Schmitt, Nicolas & Weder, Rolf, 1998. "Sunk costs and cartel formation: Theory and application to the dyestuff industry," Journal of Economic Behavior & Organization, Elsevier, vol. 36(2), pages 197-220, August.
    8. Marín Uribe, Pedro Luis, 2001. "Exclusive Contracts and Market Power: Evidence from Ocean Shipping," CEPR Discussion Papers 2828, C.E.P.R. Discussion Papers.
    9. Waters II, William G., 2007. "Evolution of Railroad Economics," Research in Transportation Economics, Elsevier, vol. 20(1), pages 11-67, January.
    10. Aivazian, Varouj A. & Callen, Jeffrey L., 2023. "The Coase Theorem and the empty core: Inspecting the entrails after four decades," International Review of Law and Economics, Elsevier, vol. 73(C).
    11. JAMES D. Reitzes, 1993. "Ocean Shipping Economics: Comment," Contemporary Economic Policy, Western Economic Association International, vol. 11(3), pages 81-85, July.
    12. Benacchio, Marco & Ferrari, Claudio & Musso, Enrico, 2007. "The liner shipping industry and EU competition rules," Transport Policy, Elsevier, vol. 14(1), pages 1-10, January.
    13. Kenneth Button & Peter Nijkamp, 1997. "Network Industries, Economic Stability and Spatial Integration," Tinbergen Institute Discussion Papers 97-047/3, Tinbergen Institute.
    14. Pedro L. Marín & Richard Sicotte, 2003. "Exclusive Contracts And Market Power: Evidence From Ocean Shipping," Journal of Industrial Economics, Wiley Blackwell, vol. 51(2), pages 193-214, June.
    15. Yang, Dong & Liu, Miaojia & Shi, Xiaoning, 2011. "Verifying liner Shipping Alliance’s stability by applying core theory," Research in Transportation Economics, Elsevier, vol. 32(1), pages 15-24.
    16. Wu, Wei-Ming, 2009. "An approach for measuring the optimal fleet capacity: Evidence from the container shipping lines in Taiwan," International Journal of Production Economics, Elsevier, vol. 122(1), pages 118-126, November.
    17. Jingang Zhao, 2009. "Estimating Merging Costs by Merger Preconditions," Theory and Decision, Springer, vol. 66(4), pages 373-399, April.
    18. Thomas Tacker, 2009. "U.S. Airline Antitrust Policy and Empty Core Disequilibrium," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 25(Fall 2009), pages 69-79.
    19. Jingang Zhao, 1998. "Non-Empty Core as a Precondition for Horizontal Merger: Core Existence without Using Balancedness," Working Papers 98-07, Ohio State University, Department of Economics.
    20. Suguru Otani, 2024. "Industry Dynamics with Cartels: The Case of the Container Shipping Industry," Discussion Paper Series DP2024-28, Research Institute for Economics & Business Administration, Kobe University.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:iaecre:v:3:y:1997:i:4:p:388-394:10.1007/bf02295217. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.