Chapter 13 The economics of maritime transport competition

In the last chapter we concluded that the shipping market is largely a competitive one. For the tramp shipping market, the competition is even considered to be perfect. The transport freight, consequently, is determined by the market forces. So a better understanding of international competition in the shipping industry is important at the company as well as the government policymaking levels. In this chapter we will examine various aspects of maritime transport competition, from its nature to its changing focus and from the internationalisation of the service inputs to the standardisation of maritime operations. Based on these discussions, we will analyse the strategic implications of maritime competition for shipping companies and policymakers alike.