Economics of regulation in shipping

In this paper the author explores the nature and scope of social regulation in shipping comparing its nature with that of economic regulation per se. Whilst economic regulation affects liner shipping only, social regulation—impelled by a specific concern for health and environmental protection, rather than a desire for optimal resource allocation—effects all types of shipping. The legislation emerging from this has had important (and often overlooked)economic impact; focusing on the conditions, under which a carrier discharges his duties, these regulations may determine, to a greater or lesser degree, the levels of cost and service. He concludes that, whilst the concept of social regulation has a valid, humanitarian base, the cost of its implementation should not be underestimated.