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Shipping line networks and the integration of South America trades

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  • Emmanuel Guy

Abstract

One recent transformation of liner shipping is the entry of leading carriers into north-south markets. This paper aims to test the commonly held proposition that global shipping lines entered north-south markets to feed more cargo on their established east-west services. This proposition arises out of: (1) predominant models of transport networks evolution which emphasize the influence of hubs, and (2) lines' strategy of commissioning larger vessels for east-west routes. In this perspective, the expansion of networks to southern economies serves specifically to bring more cargo on main routes to ensure volumes are sufficient to generate the desired economies of scale. This paper analyses the changing configurations of South American services. Results show that by 1999 leading shipping lines were offering direct services to all major trade ranges from the region, and numerous US loops were added to the already established European and Asian services. These new services involved multiple ports in the US; running in parallel with east-west services over a large part of the American coasts. The paper concludes that global shipping lines entered the South American market by setting up services typically configured to serve trades between North and South America; not to feed established main routes.

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  • Emmanuel Guy, 2003. "Shipping line networks and the integration of South America trades," Maritime Policy & Management, Taylor & Francis Journals, vol. 30(3), pages 231-242, July.
    • Handle: RePEc:taf:marpmg:v:30:y:2003:i:3:p:231-242
    DOI: 10.1080/0308883032000113271
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    2. Soppé, Martin & Parola, Francesco & Frémont, Antoine, 2009. "Emerging inter-industry partnerships between shipping lines and stevedores: from rivalry to cooperation?," Journal of Transport Geography, Elsevier, vol. 17(1), pages 10-20.
    3. Xu, Mengqiao & Li, Zhenfu & Shi, Yanlei & Zhang, Xiaoling & Jiang, Shufei, 2015. "Evolution of regional inequality in the global shipping network," Journal of Transport Geography, Elsevier, vol. 44(C), pages 1-12.
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    6. César Ducruet, 2020. "The geography of maritime networks: A critical review," Post-Print halshs-02922543, HAL.
    7. Ducruet, César & Rozenblat, Céline & Zaidi, Faraz, 2010. "Ports in multi-level maritime networks: evidence from the Atlantic (1996–2006)," Journal of Transport Geography, Elsevier, vol. 18(4), pages 508-518.
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    9. Rodrigue, Jean-Paul & Notteboom, Theo, 2010. "Foreland-based regionalization: Integrating intermediate hubs with port hinterlands," Research in Transportation Economics, Elsevier, vol. 27(1), pages 19-29.
    10. Notteboom, Theo E., 2012. "Towards a new intermediate hub region in container shipping? Relay and interlining via the Cape route vs. the Suez route," Journal of Transport Geography, Elsevier, vol. 22(C), pages 164-178.
    11. Christopher S Fowler, 2006. "Reexploring Transport Geography and Networks: A Case Study of Container Shipments to the West Coast of the United States," Environment and Planning A, , vol. 38(8), pages 1429-1448, August.
    12. Wilmsmeier Gordon & Sánchez Ricardo J., 2010. "Evolution of shipping networks," ZFW – Advances in Economic Geography, De Gruyter, vol. 54(1), pages 180-193, October.
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    14. Tavasszy, Lóránt & Minderhoud, Michiel & Perrin, Jean-François & Notteboom, Theo, 2011. "A strategic network choice model for global container flows: specification, estimation and application," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1163-1172.
    15. Antoine Fremont & F Parola & Martin Soppe, 2007. "Vertical adjustments between liner shipping and container handling industry on the global scale: divide et impera ?," Post-Print hal-02123048, HAL.

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