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Vertical integration and exclusivities in maritime freight transport

Óscar Álvarez-SanJaime, Pedro Cantos-Sánchez (), Rafael Moner-Colonques and José Sempere-Monerris ()
Authors registered in the RePEc Author Service: Óscar Álvarez San-Jaime ()

Transportation Research Part E: Logistics and Transportation Review, 2013, vol. 51, issue C, 50-61

Abstract: A key recent theme in maritime freight transport is the involvement of shipping lines in terminal management. Such investments are costly but allow liners to provide better service. Most of these new terminals are dedicated terminals but some are non-exclusive and let rivals access them for a fee. In this paper, we show that a shipping line that builds its own terminal finds it strategically profitable (i) to continue routing part of its cargo through the open port facilities, and (ii) to keep its terminal non-exclusive. In this way, the liner investor pushes part of the rival’s freight from the open to the new terminal. Besides, under non-exclusivities, the shipping lines offer a wider variety of services, total freight increases and the resulting equilibrium fares are higher than with a dedicated terminal.

Keywords: Freight transport; Shipping lines; Vertical integration (search for similar items in EconPapers)
Date: 2013
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Working Paper: Vertical integration and exclusivities in maritime freight transport (2013) Downloads
Working Paper: Vertical integration and exclusivities in maritime freight transport (2011) Downloads
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DOI: 10.1016/j.tre.2012.12.009

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Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

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