ANALYSIS OF ECONOMIC FEASIBILITY OF INTERCOASTAL CONTAINERSHIP OPERATION

Lift-on, lift-off cargo vessels operated in the United States intercoastal trade were studied with emphasis on the economic feasibility of such an operation. The economic feasibility of the containership operation depends on the ability of the proposed containership operations to attract and retain enough traffic at renumerative rates to cover operating costs. Key factors in the study therefore included: availability of intercoastal traffic suitable for containerization; containership operating costs at levels of traffic potentially attainable at current intercoastal cargo rates; and the ability of an intercoastal containership operation to attract and hold at renumerative rates this potentially available traffic against the competition of other intercoastal cargo carriers, such as railroads, motor carriers, air freight carriers, and other steamship companies. It is noted that competition in the form of selective rate cutting by railroads seeking to hold present traffic and gain additional traffic creates risks sufficient to raise serious questions as to the economic feasibility of the proposed operations. Further conclusions indicate that intercoastal containership operations are not economically feasible under the policies followed by the Interstate Commerce Commission and established by the interpretation of the courts.

• Supplemental Notes:
  • This document is available for review at the Department of Commerce Library, Main Commerce Building, Washington, D.C., under reference number L-5-AF.
• Corporate Authors:

  Little (Arthur D), Incorporated

  Acorn Park
  Cambridge, MA  United States  02140
• Publication Date: 1960

Media Info

• Features: Appendices; Figures; Tables;
• Pagination: 113 p.

Subject/Index Terms

• TRT Terms: Container traffic; Containerization; Containerships; Economics
• Subject Areas: Economics; Freight Transportation; Marine Transportation;

Filing Info

• Accession Number: 00026266
• Record Type: Publication
• Source Agency: Maritime Administration
• Files: TRIS, USDOT
• Created Date: Feb 14 1973 12:00AM