Summary

This study comprises four major sections. Section A presents the reader with a broad view of liner conference operations, covering the origin of the conference system, its internal organization, achievements and the problems and inefficients generated in trades with the US by FMC regulation. Section B explores the legal aspects of conference operation and is especially concerned with the implications and legality of the USA's policy of unilateral regulation of conferences through national legislation. Section C investigatees the economic environment in which conferences operate, postulates a new economic models applied to liner shipping. Section D consistes of a and illustrates the failures of that Report.     

The competitive environment of liner conferences

Although liner conferences are traditionally assumed to possess effective monopoly power, such a view ignores many important aspects of their competitive environment. This article examines some of these neglected competitive features and shows how they may decisively influence conference pricing strategies.

In the analysis of linear shipping, the notion that conferences are effective monopolists lies at the root of many of the grievances of the conference system. It has also become an integral part of the conventional wisdom of shipping economies, to such an extent that the monopoly power of conferences is virtually regarded as a matter of established fact rather than what it really is-namely a postulated assumption open to testing and refutation.

It is the purpose of this paper to explore the competitive conditions of the industry in which liner conferences operate and to try and establish the extent and limitations of their market power. This will involve an analysis of hte bariers to entry which conferences may be protected by, the manner in which the relevant industry should be defined, the possibility and consequences of new entry, and the response of conferences to their competitive environment.     

The rationality of conference pricing and output policies. Part 2

In Part 1^*of this article a background to the economics of conference operation was provided, and conference fleet planning and single voyage costs were discussed. This part of the paper will analyse the economic objectives of conferences and will consider the implications of ending the conference princing structure. Some recommendations are also offered.     

Shipper's councils: role and responsibility—a western view

Traditionally, liner markets have been seen as dominated by conferences on the seller side, facing small, unorganized shippers onn the buyers' side. This perceived asymmetry has greatly influenced conference legislation in North America (and more recently in the E.U.) and it has been deemed essential that government should regulate conference activities in order to curb any abuse of 'conference power'. In this view, shipowners and shippers are adversaries engaged in a zero-sum battle over transport costs rather than potential or actual partners in global distribution systems. This paper suggests that in today's global markets much can be achieved by cooperationn in the development of logistics systems and that shipowners and shippers may have much to gain from such cooperative alliances. A survey of shippers' councils in 1991-1992 demonstrates the diversity and increasing sophistication of many national shippers' councils, which devote themselves to the task of improving markets through education and the legislative process. The situation in the U.S.A. is different: for legal reasons, conventional shippers' councils do not exist. Instead, 'shippers' associations' play a commercial role in liner markets. It is suggested that European style shippers' councils can and should play an important role in the development and formulation of policies for internatinal liner markets. Such participation requires a cooperative industry environment quite different from the traditional adversarial approach, which is ill suited to global trade and logistics alliances.     

Offshore Petroleum Development and Potential

This article examines the uncertainties concerning the antiturst immunity for collective participation by liner conferences in intermodal transporation. Among them are the FMC's jurisdiction under the Shipping Act to authorize such collective actions, the legality of intermodal dual-rate contracts and the stringency by lsquo;public-interestrsquo; justification. Administrative and judicial decisions proved ineffective in resolving the issues which legislative actions had, over a decade, failed to deal with. These uncertainties could soon be ended with passage of the maritime antiturst polity emerging out of this Congress. It is, however, still uncertain as to whether, and to what extent, the viabilty of the conference system would be threatened by the continued growth of intermodalism and vice versa. Congressional intent to safeguard the continued growth of intermodalism and the development of other future innovations means that these two issues are of more than just academic interests. Yet, they have not been adequately addressed in the policy studies currently available.     

US antitrust policy and liner conferences in the age of intermodalism

This article examines the uncertainties concerning the antiturst immunity for collective participation by liner conferences in intermodal transporation. Among them are the FMC's jurisdiction under the Shipping Act to authorize such collective actions, the legality of intermodal dual-rate contracts and the stringency by lsquo;public-interestrsquo; justification. Administrative and judicial decisions proved ineffective in resolving the issues which legislative actions had, over a decade, failed to deal with. These uncertainties could soon be ended with passage of the maritime antiturst polity emerging out of this Congress. It is, however, still uncertain as to whether, and to what extent, the viabilty of the conference system would be threatened by the continued growth of intermodalism and vice versa. Congressional intent to safeguard the continued growth of intermodalism and the development of other future innovations means that these two issues are of more than just academic interests. Yet, they have not been adequately addressed in the policy studies currently available.     

The effects of US shipping regulation on specific aspects of liner conference operation

This paper is the first of two articles by J. E. Davies which seek to explore the incongruities of the USA's current regulatory system. The second paper will cover the overall economic impact of the USA's insistence on open conferences in its trades, whilst the first concentrates on the effects of US regulation on specific aspects of the operation of linear conferences.     

Conference-shipper loyalty contacts: Time for a re-think?

This paper examines the purposal by the British Shipper's Council (BSC) and the UK government to place a statutory limit, by means of a regulations implementing the EEC rules for competition, upon the proportion of a shipper's cudstom that may be demanded in a loyalty agreement with a liner conference.

The development of 70% loyalty is traced through the following the various drafts of the EEC competition rules for sea transport; the department of trade investigation which found freight rate disparities that were caused partially by the less competitive environment in the UK than on the Continent; and evidence given on 70% loyalty beforew the house of Lords Select Commitee on the European Communities.

By considering the precise proposals, as suggested by the BSC, and means of enforcing them, 70% loyalty is found to be eminently practicable. the short-term consequences of its introduction are unlikely to be great, considering the shippers' needs for a good quality service; but in time the additional competition fostered by a less-than-100% tie would cause radical changes; conferences would have to aopt limit-pricing and respond to competition loyalty ties might be restricted to service contracts with large shippers. These effects would be felt far more in the UK since the continental environment is in any case more competitive.

It is concluded that 70% loyalty should be imposed upon conferences by means of the EEC Regulations in order to enhance the competitive environment of linear shipping.     

Current aspects on international shipping policy

The subject of shipping conferences has been much discussed in recent decades. In this paper the author advocates a reappraisal of the conference system with special reference to the fleets of developing countries.     

Current aspects on international shipping policy

The subject of shipping conferences has been much discussed in recent decades. In this paper the author advocates a reappraisal of the conference system with special reference to the fleets of developing countries.     

The rationality of conference pricing and output policies. Part 2

In Part 1 ^{* *}Maritime Studies and Management (1975) Vol 3, No. 2, pp. 103–111. of this article a background to the economics of conference operation was provided, and conference fleet planning and single voyage costs were discussed. This part of the paper will analyse the economic objectives of conferences and will consider the implications of ending the conference princing structure. Some recommendations are also offered.     

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.     

Containerization and liner conferencs: A polemic

By the mind-1960s there was a great deal of inefficiency in the Europe/Australia liner trade which reflected the ultra-conservative management of the British shipping lines under the benign protection of the conference system. Containerization per se was not necessary to realising a large gain in efficiency and therefore permitting a reduction in the level of freight rates. The introduction of containerization with cellular container ships and under the aegis of a strengthened conference monopoly has meant that shippers have been denied much of the potenital beneifit.     

An Investigation into Some Effects of New Handling Technologies on the Structure of Marine Transport Systems ∗

By the mind-1960s there was a great deal of inefficiency in the Europe/Australia liner trade which reflected the ultra-conservative management of the British shipping lines under the benign protection of the conference system. Containerization per se was not necessary to realising a large gain in efficiency and therefore permitting a reduction in the level of freight rates. The introduction of containerization with cellular container ships and under the aegis of a strengthened conference monopoly has meant that shippers have been denied much of the potenital beneifit.     

Some notes on structure and stability in liner shipping

Almost six years have elapsed since the passage of the Ocean Shipping Reform Act (OSRA), legislation that has led to significant changes in the structure of the US liner shipping industry. The European Union (EU) is poised to follow suit with the impending elimination of rule 4056/86, the block exemption from EU competition rules for liner shipping companies operating on European trades routes. The EU reform, however, is likely to go further than OSRA by prohibiting both conferences and discussion agreements on European trade routes. The outcome of such a policy is uncertain and the current review of it is several years old already. This paper is intended to provide some insight into the potential impact of regulatory reform in Europe, using the US experience as a benchmark. Specifically, the impact of OSRA with respect to industry structure, including its profitability, efficiency and what may be in store for the future is examined.     

Some notes on structure and stability in liner shipping

Almost six years have elapsed since the passage of the Ocean Shipping Reform Act (OSRA), legislation that has led to significant changes in the structure of the US liner shipping industry. The European Union (EU) is poised to follow suit with the impending elimination of rule 4056/86, the block exemption from EU competition rules for liner shipping companies operating on European trades routes. The EU reform, however, is likely to go further than OSRA by prohibiting both conferences and discussion agreements on European trade routes. The outcome of such a policy is uncertain and the current review of it is several years old already. This paper is intended to provide some insight into the potential impact of regulatory reform in Europe, using the US experience as a benchmark. Specifically, the impact of OSRA with respect to industry structure, including its profitability, efficiency and what may be in store for the future is examined.     

The evolution of Canadian liner shipping policy

This paper traces the evolution of Canadian liner shipping policy from its beginnings, at the time of the initial formation of shipping conferences, in the late nineteenth century, to its current form, as provided by the 1987 Shipping Conference Exemption Act. It is shown that evolution has been associated with a shift in policy orientation from an initial British-based position to a contemporary form that is distincly American in nature. The reasons for this shift are analysed and the similarities and differences between curent Canadian and U.S.A. legislation are identified. The paper shows that the adoption by Canada of an American-style policy became inevitable once the container revolution had physically integrated the transport systems of both nations.     

Liner alliances in the globalization era: a strategic tool for Asian container carriers

There has been an increased interest recently in alliances as successors of the large consortia that used to operate in the context of the conference system. Today, having become a common means and term of co-operation in a variety of other industries, alliances are posited as the response of the supply side of liner shipping to important changes on the demand side; alliances have, thus, become predominant in the most important routes for container cargoes. In recent years, however, the list of major container traffic generators and the list of major carriers of containerized cargoes have begun to contain more common entries, generally originating from the Asian region. Asia is, however, a large continent and the entrance of Asian carriers into liner shipping has not been simultaneous; the position, strategies and co-operation strategies of Asian companies have more differences than they share common features. Nevertheless, this paper suggests that alliances are a distinct form of co-operation in liner shipping and the empirical evidence based on a survey in the region supports this hypothesis. The similarity of attitudes of the major Asian container carriers vis a vis alliances is in this way revealing in terms of the range of motivations for participating in the alliance system in a globalized transport environment.     

集装箱船舶大型化对中国班轮运输的影响

通过竞争情报分析提供了各班轮公司未来船队结构和运力的变化趋势,由此观察到各班轮公司为了降低自身的营运成本,在最近几年大量订购超巴拿马型甚至更大型的集装箱船舶参与运输,但是却不能达到其预期的规模效应。原因就在于相当一部分成本随着船型的增大而线性增加,规模不经济。我们探讨了中国的班轮运输市场的几个重要特点:中外贸易的不平衡导致了货源的不平衡;未来贸易结构的调整会影响航线的布局和调派;贸易上的不稳定因素使班轮公司遇到外在的风险。这些特点会深远地影响集装箱船舶大型化的经济受益,相反的,集装箱船舶大型化的趋势也会加剧这些负面的影响,危及整个班轮运输市场。     

芜申航道南京高淳段护岸结构形式的探讨

航道整治中采用生态护坡是恢复航道生态的基础。介绍芜申航道南京高淳段整治工可报告中设计的航道护岸结构形式和国内外目前的一些生态护坡技术,并根据芜申航道高淳段的特点,探讨几种可考虑采用的生态护岸结构形式。