Competition and Cooperation in the U.S. Liner Industry: A Case Study of the North Atlantic Trade Routes

摘要

This study examines the nature and extent of competition among liner shipping services for cargoes on the trade routes between U.S. North Atlantic ports and Northern Europe and the effect of the Shipping Act of 1984 on that competition. Although over the past decade trade with Asia has superseded trade with Europe, the North Atlantic routes still account for a major share of U.S. foreign trade. The study's examination of modal competition among liners, non-liners and air-freight operations indicates significant competition among the three. The competition for cargoes also occurs among ports and port ranges. The study also discusses the importance of conferences and rate agreements in the North Atlantic trade and the effectiveness of these conferences in controlling capacity. The Shipping Act of 1984 will principally affect competition by allowing conferences to coordinate intermodal through-rates. This law also increases the freedom of conferences to employ pooling arrangements and may improve the ability of conferences to control capacity.