Advanced Search
MyIDEAS: Login to save this paper or follow this series

Vertical integration and exclusivities in maritime freight transport

Contents:

Author Info

  • CANTOS-SANCHEZ, Pedro

    (Department of Economic Analysis and ERI-CES, University of Valencia, Spain)

  • MONER-COLONQUES, Rafael

    (Department of Economic Analysis and ERI-CES, University of Valencia, Spain)

  • SEMPERE-MONERRIS, José J.

    (Department of Economic Analysis and ERI-CES, University of Valencia, Spain and Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium)

  • ALVAREZ-SANJAIME, Oscar

    (Department of Economic Analysis and ERI, University of Valencia, Spain)

Abstract

A key recent theme in maritime freight transport is the involvement of shipping lines in terminal management. Such investments are costly but allow liners to provide better service. Most of these new terminals are dedicated terminals but some are non-exclusive and let rivals access them for a fee. In this paper, we show that a shipping line that builds its own terminal finds it strategically profitable i) to continue routing part of its cargo through the open port facilities, and ii) to keep its terminal non-exclusive. In this way, the liner investor pushes part of the rival's freight from the open to the new terminal. Besides, under non-exclusivities, the shipping lines offer a wider variety of services, total freight increases and the resulting equilibrium fares are higher than with a dedicated terminal.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://uclouvain.be/cps/ucl/doc/core/documents/coredp2011_15web.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2011015.

as in new window
Length:
Date of creation: 01 Mar 2011
Date of revision:
Handle: RePEc:cor:louvco:2011015

Contact details of provider:
Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)
Phone: 32(10)474321
Fax: +32 10474304
Email:
Web page: http://www.uclouvain.be/core
More information through EDIRC

Related research

Keywords: freight transport; shipping lines; vertical integration;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. HEAVER, Trevor & MEERSMAN, Hilde & VAN DE VOORDE, Eddy, 2001. "Co-operation and competition in international container transport: Strategies for ports," Working Papers 2001002, University of Antwerp, Faculty of Applied Economics.
  2. DE BORGER, Bruno & PROOST, Stef & VAN DENDER, Kurt, 2007. "Private port pricing and public investment in port and hinterland capacity," Working Papers 2007019, University of Antwerp, Faculty of Applied Economics.
  3. Anming Zhang, 2008. "The Impact of Hinterland Access Conditions on Rivalry between Ports," OECD/ITF Joint Transport Research Centre Discussion Papers 2008/8, OECD Publishing.
  4. Evangelia N. Kaselimi & Theo E. Notteboom & Bruno De Borger, 2011. "A game theoretical approach to competition between multi-user terminals: the impact of dedicated terminals," Maritime Policy & Management, Taylor & Francis Journals, vol. 38(4), pages 395-414, January.
  5. Photis M Panayides & Kevin Cullinane, 2002. "Competitive Advantage in Liner Shipping: A Review and Research Agenda," Maritime Economics and Logistics, Palgrave Macmillan, vol. 4(3), pages 189-209, September.
  6. Yongmin Chen, 2000. "On Vertical Mergers and Their Competitive Effects," Econometric Society World Congress 2000 Contributed Papers 0383, Econometric Society.
  7. R. Midoro & E. Musso & F. Parola *, 2005. "Maritime liner shipping and the stevedoring industry: market structure and competition strategies," Maritime Policy & Management, Taylor & Francis Journals, vol. 32(2), pages 89-106, April.
  8. Jo Reynaerts, 2010. "Simulating mergers between stevedores," Maritime Economics and Logistics, Palgrave Macmillan, vol. 12(1), pages 8-35, March.
  9. Hummels, David & Lugovskyy, Volodymyr & Skiba, Alexandre, 2009. "The trade reducing effects of market power in international shipping," Journal of Development Economics, Elsevier, vol. 89(1), pages 84-97, May.
  10. Hercules E Haralambides & Pierre Cariou & Marco Benacchio, 2002. "Costs, Benefits and Pricing of Dedicated Container Terminals," Maritime Economics and Logistics, Palgrave Macmillan, vol. 4(1), pages 21-34, March.
  11. Zhang, Anming & Fu, Xiaowen & Yang, Hangjun (Gavin), 2010. "Revenue sharing with multiple airlines and airports," Transportation Research Part B: Methodological, Elsevier, vol. 44(8-9), pages 944-959, September.
  12. Moner-Colonques, Rafael, 2006. "The tradeoffs between retail service and exclusivity in distribution: Welfare and policy implications," International Review of Law and Economics, Elsevier, vol. 26(2), pages 241-261, June.
  13. Theo E Notteboom, 2006. "The Time Factor in Liner Shipping Services," Maritime Economics and Logistics, Palgrave Macmillan, vol. 8(1), pages 19-39, March.
  14. Defilippi, Enzo & Flor, Lincoln, 2008. "Regulation in a context of limited competition: A port case," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(5), pages 762-773, June.
  15. Eddy van de Voorde & Thierry Vanelslander, 2009. "Market Power and Vertical and Horizontal Integration in the Maritime Shipping and Port Industry," OECD/ITF Joint Transport Research Centre Discussion Papers 2009/2, OECD Publishing.
  16. David Spector, 2007. "Exclusive contracts and demand foreclosure," PSE Working Papers halshs-00588311, HAL.
  17. Zhang, Anming & Lang, Chunmei & Hui, Y.V. & Leung, Lawrence, 2007. "Intermodal alliance and rivalry of transport chains: The air cargo market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(3), pages 234-246, May.
  18. Dixit, Avinash K., 1978. "A Model of Duopoly Suggesting a Theory of Entry Barriers," The Warwick Economics Research Paper Series (TWERPS) 125, University of Warwick, Department of Economics.
  19. Photis M. Panayides, 2003. "Competitive strategies and organizational performance in ship management," Maritime Policy & Management, Taylor & Francis Journals, vol. 30(2), pages 123-140, January.
  20. Wilmsmeier, Gordon & Hoffmann, Jan & Sanchez, Ricardo J., 2006. "The Impact of Port Characteristics on International Maritime Transport Costs," Research in Transportation Economics, Elsevier, vol. 16(1), pages 117-140, January.
  21. Choi, J.P. & Yi, S.S., 1997. "Vertical Foreclosure with the Choice of Input Specifications," Discussion Paper 1997-16, Tilburg University, Center for Economic Research.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. DE BORGER, Bruno & PROOST, Stef, 2012. "Transport policy competition between governments: A selective survey of the literature," Working Papers 2012014, University of Antwerp, Faculty of Applied Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cor:louvco:2011015. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.