Scale and rationalization in container shipping

Return to scale are important in container shipping: service operators are continuing to increase the size of their vessels. Mr Seok-Min Lim's article 'Economies of container ship size' (Maritime pollicy and Management,21(2) pages 149-160, 1994) uses a sample of transPacific voyages to evaluate the effect of vessel scale on revenue and cost.Although the results are inconclusive,his study is of value in drawing attention to the revenue-side problems of large containerships. More data need to be collected before the effects of topping up with low-rated cargo on unit revenue retention can be assessed. Meanwhile the pursuit of scale aggravates over-tonnaging. The required response is further rationalization, through the medium of the conferences and the container consortia. In Europe both are under political attack. Operators need to convince the authorities of the soundness of the soundness of their case for adapting these institutions to the neeeds of times.Otherwise the scramble for scale could spell disaster.