We use cookies to improve your website experience. To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy. By continuing to use the website, you consent to our use of cookies. Close

PART II The supply

Economics of Maritime Business

Page 113


The supply

The supply

Page 114

Chapter 5 Productivity and structure changes in maritime transport

Page 115

It was concluded in the previous chapter that one of the major causes of the extraordinary growth of international trade is the decline of maritime transport prices, especially in terms of value for money. It means that the price a customer pays for transport services with a comparable quality has been decreasing. Though prices do fluctuate in the long term and in a competitive market, which is very much the case of international shipping, the price is determined by cost. So, over a long time, the cost of providing a specific type of maritime transport service has declined. What are the root causes for this fall in the transport cost? Under what conditions did the cost decrease happen? What are the driving forces for such condition changes? In this chapter we will discuss these questions by looking at the structural evolution that occurred in the maritime transport industry and by analysing various issues related to maritime transport productivity: its nature, the reasons and the impact on international seaborne trade, both in the short and long term.

The rest of this document is only available to i-law.com online subscribers.

If you are already a subscriber, click login button.