THE IMPACT OF BILATERAL SHIPPING AGREEMENTS IN THE U.S. LINER TRADES

The purpose of this study was to develop quantitative measures of the impact of bilateral shipping agreements--including cargo reservation and revenue pooling--on the commerce, carriers and shippers in the U.S.-foreign trade. Theoretical work on the issue presumes that bilateralism is a form of intercarrier cooperation which increases carrier certainty and control of operations, and reduces carrier risk, by providing a substantial guarantee that a relatively certain and substantial share of the cargo and the cargo revenue will accure to the cooperating carriers. The potential drawback is that such a market, with lessened competitive pressures, might work to the disadvantage of the shipper, in terms of deteriorated or less innovative service and/or in terms of higher freight rates. On the other hand, it is possible that the better match of capacity to cargo, higher utilization and service innovations that might be achieved by the carriers might then also benefit shippers, in that cost savings would be passed along to the consumers of shipping services. These opposing conjectures can be answered only by empirical case studies such as this one--a time-series and cross-sectional study of bilateralism in the U.S. trade with Brazil during the period 1967-1976.

  • Corporate Authors:

    Manalytics, Incorporated

    625 Third Street
    San Francisco, CA  USA  94107
  • Publication Date: 1979-5

Media Info

  • Pagination: 92 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00301400
  • Record Type: Publication
  • Report/Paper Numbers: Final Rpt.
  • Files: TRIS, USDOT
  • Created Date: Nov 7 1979 12:00AM