The value of direct call services by container shipping lines in Northern Europe: support model for strategic scenario development and case study

This paper addresses the decision on which ports to service with direct calls by large vessels, and which ports to service by feeder vessels from (which) transhipment ports. This is a fundamental aspect of liner shipping services which impacts directly upon the cost of transporting intercontinental container flows. The authors develop a strategic support model for analysing the economic consequences of the alternative options for container service, as well as illustrate its use with an empirical case study of intercontinental container flows moving to and from the port of Gothenburg in Sweden. A range of hypothetical scenarios are tested which vary in terms of container volumes and number of operators involved in the shipping service. Given sufficient volumes, the authors deduce that a direct call system would be more cost-efficient than feeder-based services; particularly when maximum economies of scale can be reaped by a monopoly provider in a contestable market. Conclusions are made regarding the port of Gothenburg in terms of its competitiveness as a transhipment hub for container flows to and from the Baltic States and Russia. There are also positive economic ramifications for Sweden, in general; as well as greater scope for horizontal cooperation between shippers in Scandinavia and its export markets, in such a way that higher quality of service and lower prices with international carriers can be secured.

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• Corporate Authors:

  Edward Elgar Publishers

  William Pratt House, 9 Dewey Court
  Northampton, MA  United States  01060-3815
• Authors:
  • Jensen, Arne
  • Bergqvist, Rickard
• Publication Date: 2010-9

Language

• English

Media Info

• Media Type: Print
• Features: Figures; References; Tables;
• Pagination: pp 256-283
• Monograph Title: International Handbook of Maritime Economics

Subject/Index Terms

• TRT Terms: Alternatives analysis; Case studies; Containerization; Cooperation; Cost effectiveness; Decision making; Economic impacts; Economic models; Feeder services; Forecasting; Freight service; Ship lines; Shipping
• Identifier Terms: Goteborgs Hamn
• Uncontrolled Terms: Direct delivery; Freight flow
• Geographic Terms: Baltic Countries; Scandinavia
• Subject Areas: Economics; Freight Transportation; Marine Transportation; Planning and Forecasting; I10: Economics and Administration;

Filing Info

• Accession Number: 01354384
• Record Type: Publication
• ISBN: 9781847209344
• Files: TRIS
• Created Date: Oct 21 2011 7:37AM