FREIGHT PRICING POLICY IN COASTAL LINER BEFORE THE FIRST WORLD WAR. IN: COASTAL AND SHORT SEA SHIPPING

The business policies used by the coastal shipping companies to try to compete with the railways can now be summarized. First, they monitored the freight train rates and kept them constantly in hand, both the class rates and the exceptional rates. They then based their own charges on the same classifications making it easy for customers to compare prices. In setting their rates the shipping firms kept their charge well below that of the railway, especially for long hauls and bulky commodities. Like the railways, the coasters offered a discount on quantity, thus encouraging merchants and manufacturers to send large consignments and so increase the profitability of full loads for the coaster. It was also quite usual, by the late nineteenth and early twentieth centuries, for coastal liner companies to cooperate to reduce the competition among themselves by fixing common freight rates and scheduling their steamer's departures on an agreed basis. In this way they provided a better service to the customer but at a price which yielded themselves a return. Thus, a number of ways that the coastal liners attracted shippers was by offering cheaper freights than the railways, agreeing on special rates for large quantities and regular customers, and offering through rates to inland towns or the smaller ports.

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  • Supplemental Notes:
    • Originally published in Journal of Transport History, 3rd series, vol. X, no. 2 (1989) pp. 180-197.
  • Corporate Authors:

    Ashgate Publishing Company

    110 Cherry Street, Suite 3-1
    Burlington, VT  United States  05401-3818
  • Authors:
    • Armstrong, J
  • Publication Date: 1996

Language

  • English

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Filing Info

  • Accession Number: 00794189
  • Record Type: Publication
  • ISBN: 1859283004
  • Files: TRIS
  • Created Date: Jun 12 2000 12:00AM