| Abstract: | In this paper, the authors outline the structure of liner shipping systems with special emphasis on the question of whether feeder services are superior in economic terms to the more traditional and commonly-used multi-port-calling system. They describe the theoretical advantages of the former over the latter, and develop a model by which the optimal conditions both operate in may be determined. This model is then applied to a real situation to ascertain whether the theory works in practice. They conclude that the shuuttle/feeder system is worthwhile only in exceptional circumstances when specific route characteristics—low trade density; hinterland generated cargo; inland position of port; and heavy congestion—coexist. Despite the expense of multi-port-calling, it remains the most practical solution to the thin trade problem. |
