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Using a discrete-choice perspective and emphasizing the differentiated-goods nature of container handling, this article empirically studies the price and welfare effects of the 2001 merger between Antwerp-based container handlers Hessenatie and Noord Natie. Results show that: (i) the merger between Hessenatie and Noord Natie causes relatively small price increases and losses to consumer surplus and total welfare, confirming the clearance of the merger by the Belgian Competition Authority; (ii) increased substitutability among container handlers and more realistic shipper/carrier substitution patterns tend to mitigate welfare losses from mergers in this industry and; (iii) allowing for post-merger costs savings, price decreases passed on to shippers/carriers entail significant increases in both consumer surplus and total welfare. Additionally, market power is shown to be more sensitive to changes in inter-handler substitutability than increasing complexity of consumer substitution.

This article investigates the interrelationships in daily returns and volatilities between Capesize and Panamax price series in four major trading routes, the transatlantic, the fronthaul, the transpacific and the backhaul, during the sample period from 1999 to 2008. The sample is split into two sub-periods: the first runs from 3 January 1999 to 24 December 2002 and the second is from 2 January 2003 to 29 August 2008, because of the substantially different economic conditions and market features over each of these periods. Cointegration and causality tests have been made for the price series over two sub-periods and yield mixed results. The volatility spillovers between Capesize and Panamax markets are investigated by employing an extended bivariate ECM-GARCH model. The results, in terms of returns and volatilities, imply that the dynamics between the two markets change across time on different trading routes. The findings of this study contain useful information for both shipowners and charterers to mitigate risks or to make extra profits by switching between the two markets.

The virtual disappearance of liner shipping conferences from US markets and their elimination in European trades create a significant risk that in place of these collusive price-setting groups, the industry could become increasingly consolidated. The absence of the conference pricing cushion could end up giving an advantage to large, cost-efficient carriers who will drive smaller players from the market. During this competitive process, shippers could see lower freight rates and better service but as the industry consolidates towards oligopoly, there is the risk that shippers will be faced with fewer alternatives to move their goods, lower service quality and significantly higher prices. The impact on merchandise trade could be substantial. This paper is intended to reveal basic structural characteristics of the liner shipping industry that could point to more accurate predictions of future consolidation activity. In particular, a series of mergers and acquisitions in the industry will be examined against the backdrop of industry structure and regulatory constraints. Ultimately, a Poisson model is formulated and estimated to extract and quantify the structural factors that increase the likelihood of horizontal merger and acquisition activity. Maritime Economics & Logistics (2009) 11, 209–226. doi:10.1057/mel.2009.3

Liner shipping companies strive for fully loading cargo on vessels and often neglect revenue management opportunities. Shipping agents in different ports typically compete for additional slots on containerships to improve their own revenue. In booming markets, arguments over slot allocation between shipping agencies occur frequently. Intra-Asian service routes are designed to call at many ports to provide frequent sailings, reduced shipping time and direct delivery. Slot allocation in intra-Asia liner shipping is more complex than that for long-haul liner shipping. This study uses revenue management modelling as a decision-support tool to enhance profit and management performance of liner shipping agencies. The model is explained using a case study of Taiwan liner shipping company. Experimental results show the proposed model to have better applicability and performance than conventional slot allocation models. Maritime Economics & Logistics (2008) 10, 295–309. doi:10.1057/mel.2008.6

The recent increase in operating expenses of merchant vessels (opex) has stimulated interest in explaining their determinants. However, the available literature cannot explain this development nor does it provide information on a level of necessary detail. This paper considers a quantitative model of opex that is particularly successful in explaining the variation in opex across vessels of different type, size, age and specification. This paper employs a generalised additive model framework to analyse the determinants of opex. The results confirm that differences in opex are due to the behaviour of a vessel's operator and to regulatory requirements. Furthermore, it shows that there are significant differences in opex due to earnings and employment status of a vessel. Maritime Economics & Logistics (2008) 10, 275–294. doi:10.1057/mel.2008.5

With falling tariff and non-tariff barriers, lowering other trade costs related to the logistics of moving goods through ports is key to further facilitation of world trade. Such costs are now part of the language of several GATT articles of importance to WTO negotiations. This paper estimates the effect of various port costs on re-export intensity in six major Asian ports: Dubai, Manama, Mumbai, Bandar Abbas, Damman, and Hong Kong. What we find is that the cost of transportation and logistics is the most important factor affecting re-export intensity. We also find that re-export intensity is not dissimilar between the Asian ports reviewed except Hong Kong. Hong Kong seems to outperform the rest of the ports except Dubai. Maritime Economics & Logistics (2008) 10, 229–242. doi:10.1057/mel.2008.2

Shipping is a highly internationalised industry working in an increasingly globalised environment. Meanwhile, policy-making in shipping continues to be formulated within a traditional nested hierarchy of jurisdictions that pays little attention to new relationships that exist and intensify between jurisdictional levels, interested parties, and across different locations. This paper examines these issues providing an interpretation of the current shipping policy-making situation and the problems it faces, the need for a new approach and the potential of multi-level governance. Maritime Economics & Logistics (2007) 9, 84–103. doi:10.1057/palgrave.mel.9100173

Despite the illiquid and heterogeneous nature of the second-hand market for bulk ships and the resulting difficulty of creating reliable time series of ship prices for generic ships, the literature on ship price dynamics relies heavily on time series models. In this paper we present, for the first time, an analysis of ship valuation using cross-sectional data based on actual sale and purchase transactions in the second-hand market for bulk ships. This allows us to investigate price formation in the second-market free of broker bias and measurement error. Moreover, we do not impose a strict linear model specification but allow for the presence of non-linearity in a flexible non-parametric vessel valuation function. Based on data from more than 1,850 individual sales of Handysize bulk carriers from January 1993 to October 2003, we find that the second-hand value of a vessel can be well described as a partially non-linear function of three main factors: DWT, age, and the state of the freight market. Maritime Economics & Logistics (2007) 9, 105–118. doi:10.1057/palgrave.mel.9100174

This paper proposes a framework for benchmarking Italian and Portuguese seaports and the rationalisation of their operational activities. The analysis is based on the Luenberger productivity indicator. A key advantage of this method is that it allows for both input contraction and output expansion in determining relative efficiencies and productivity changes. Benchmarks are provided for improving the operations of those seaports that perform worse than others. Several interesting and useful managerial insights and implications arise from the study. The general conclusion is that the benchmarking of multi-country seaports gives a different picture than the one obtained by benchmarking the seaports of a single country, reflecting different cultural traditions and managerial practices. Maritime Economics & Logistics (2007) 9, 138–147. doi:10.1057/palgrave.mel.9100176

The maritime shipping industry has experienced significant technological and management changes over the past several decades. This study analyses the total factor productivity of Japan’s shipping industry by applying the Luenberger productivity indicator from 1996 to 2005. This is a nonparametric frontier analysis technique, which allows for inefficiency of the production unit. We find large productivity increases in three major maritime shipping firms in Japan, although the magnitudes are different among firms and the general industry trend is declining. Maritime Economics & Logistics (2007) 9, 291–301. doi:10.1057/palgrave.mel.9100187

Port planning should take into account the following elements: port development strategy; the relationship between port and city; port financing; the key financial players; economic impacts, both local and national; and environmental impacts. The master plan usually sets out a 10-year port development option, where many different interests come into play, and it requires an agreed course of action. This paper examines the challenges that a port faces in achieving its primary objectives as outlined in its master plan. Namely, economic expansion; employment; the strengthening of the maritime industry; the creation of value-added services – benefiting city and port alike; the provision and upgrading of infrastructure; and the development of an efficient management strategy. In what direction are we moving in terms of port planning models? This article is designed to stimulate a debate that may provide some of the answers for the future, where each individual port can tailor its own solution. Maritime Economics & Logistics (2003) 5, 413–425. doi:10.1057/palgrave.mel.9100089