It has been shown that the original cost of investment in the main maritime markets has been increasing over time. The approach taken is that the increasing capital requirements in the main maritime markets constitute a barrier to entry. The accompanying tables indicate such requirements differ from market to market and they are considerably higher in specialized markets and in the liner market, if one takes into consideration that the firm must operate more than one unit in order to remain in that market. It has been argued that increasing capital requirements as such can not be considered a barrier to entry in view of the fact that credit and financial facilities now are generally easier for the firm to secure than used to be the case in the past when capital requirements for entry were less. This might seem to have been so during the period of "liberal credit policies" when not even 10% of the building cost of the ship had to be provided by the firm. Although the recent recession heightened the problems created by the liberal credit policies the evidence from the financial sector reveals that the lesson has been learned of the general problems of such a policy. Capital is a scarce resource in shipping as much as in any other industry. It is obvious that the entrepreneurial concern over increasing capital requirements is justified and that, as a result, concentration of ownership will tend to increase further in those maritime markets which function under oligopolistic conditions.

  • Availability:
  • Corporate Authors:

    Taylor & Francis

    4 Park Square, Milton Park
    Abingdon,   United Kingdom  OX14 4RN
  • Authors:
    • Metaxas, B N
    • Parker, W N
  • Publication Date: 1979-10

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00309366
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Apr 22 1980 12:00AM