THEORY OF OPTIMUM SHIP SIZE

The theoretical relationships discussed in this paper relate to the economic concepts of the economies of scale in bulk vessels, and the diseconomies in storage and handling facilities. These theoretical relationships can be used to predict the future trends in ship size for different commodities, sources and destinations. The theory can assist port managers to determine the best strategy in developing their commodity handling facilities. Alternatively from a National point of view alternatives can be assessed of degrees of concentration of product imports, either limiting ports by developing adequate inland transport links or through transhipment and/or port of call operation. Clearly the validity of the relationships is dependent on the assumptions made in developing the fundamental model. Although the theory is not over sensitive to deviations from the assumptions there appears to be a high dependence on the precision of determination of model parameters. The real test of any theory is its ability to predict. Results to date indicate a prediction accuracy adequate to the likely applications of the model. The optimum ship size theory discussed in this paper has been developed to explain the macro-economics of some aspects of dry bulk cargo shipping practices. Nevertheless, the general concepts and principles appear to have far wider applicability. Some of these implications are also described.

• Corporate Authors:

  Associated Industrial Consultants Nederland N.V.

  Leidsegracht 39
  Amsterdam,   Netherlands 
• Authors:
  • Harding, A S
  • Kendalh, PMH
  • Taylor, R J
• Publication Date: 1971-5-4

Media Info

• Features: References; Tables;
• Pagination: 12 p.

Subject/Index Terms

• TRT Terms: Bulk carriers; Capital investments; Economic analysis; Optimization; Ship operations; Ships; Ships by size; Vehicle size
• Old TRIS Terms: Economic analysis (Ship operation)
• Subject Areas: Administration and Management; Design; Economics; Marine Transportation; Vehicles and Equipment;

Filing Info

• Accession Number: 00019342
• Record Type: Publication
• Files: TRIS
• Created Date: Nov 8 1974 12:00AM