Topic: 12.3 Shipping
Statistical estimation of cost functions for sea transport in dry bulk carriers indicates that the effect of distance on freight rates is less than it appears to be in engineering cost functions. This is important for cost-benefit analysis of port projects.
The author compares cargo handling rates and costs at sea and in port. There are so many systems available that no clear-cut choices can be made, but deep sea roll-on-roll-off ships seem likely to make a powerful challenge on third world routes.
Dr Saggar finds that very large economies could be effected by reducing the number of ports of call and thus increasing the number of voyages per annum. The largest and fastest ships may not be the most economical.
An examination of the system of conferences to control charges by cargo liners. The author concludes that conferences do not maximise profits and that the rate structure is too arbitrary to deter competition; rates based on costs of carriage plus a normal profit would serve the needs of trade much better.
This is a study of the costs of a defined cargo liner, with the object of discovering to what extent the true costs – as distinct from the market rates – of moving freight and passengers by sea are affected by differences in turn-round time and route length. A method of shadow prices is used and the results help one to judge how far it is worth spending money in other directions in order to improve turn-round time.
The author gives a statistical analysis of the economics of Norwegian coastal shipping and considers its prospects in meeting new competition from road and air transport.