Course: Shipping Economics and Policy

Background

Competition and technological advancement in ship construction have lowered transport costs and made ocean transportation an unquestionable facilitator of world trade, growth and prosperity. Shipping management is an extremely complex function. In bulk shipping, high market volatility and unpredictability require lean organisation and effective decision-making, both in operations and asset management. Multimodal transport, logistics and the complexity of global maritime supply chains in liner shipping require highly sophisticated operational solutions. Capital concentration and intensified global competition in shipping require managerial skills that include a thorough understanding of the institutional framework of international shipping and the way it affects the well-being of the company. For instance, the ever-increasing body of international rules and standards with regard to ship safety and environmental protection makes the adoption of a safety management culture a sine qua non in corporate thinking.

Objectives

The objectives of the course are to enable students understand, analyze and appraise, from a research viewpoint, shipping economics theories and trends and the role shipping plays in global maritime supply chains. In addition, the aim is to afford students a broad and thorough understanding of international shipping and trade policy issues, thus offering them the strong comparative advantage of being able to put their managerial decisions in the proper industrial and trade policy perspective.

Programme Update

NB: The new MEL programme structure will be introduced in the academic year 2012-2013. This means that the names of some of the courses will change and that most courses will be split into a number of smaller modules. MEL Management is currently working on the new programme and will post updates as soon as information becomes available.

Recommended reading

  • Abrahamsson, B.J. "International Ocean Shipping". Westview, 1980

  • Beenstock, M & A. Vergottis "An Econometric Model of World Shipping". Chapman & Hall, 1993

  • Brooks, M.R. "Sea Change in Liner Shipping". Perhamon, 2000

  • Buxton, I.L. "Engineering Economics and Ship Design". British Maritime Technology, 1987

  • Clark, X., Dollar, D., & Micco, A. (2004). Port efficiency, maritime transport costs, and bilateral trade. Journal of Development Economics, 75(2), 417-450.

  • Cullinane, K. & Khanna, M. (2000). Economies of scale in large containerships: Optimal size and geographical implications. Journal of Transport Geography, 8(3), 181-195.

  • Dixit, A.K. & V. Norman "Theory of International Trade". Cambridge University Press, 1980

  • Evangelista, P. & Morvillo, A. (1999). Alliances in liner shipping: An instrument to gain operational efficiency or supply chain integration? International Journal of Logistics Research and Applications, 2(1), 21-38.

  • Evans, J.J. & P.B. Marlow "Quantitative Methods in Maritime Economics". Fairplay Publications, 1990

  • Franck, B. & Bunel, J. C. (1991). Contestability, competition and regulation: The case of liner shipping. International Journal of Industrial Organization, 9(1), 141-159.

  • Haralambides, H.E. "Topics in Applied Maritime Economics". Erasmus University Rotterdam, 2007

  • Hummels, D., Ishii, J., & Yi, K. M. (2001). The nature and growth of vertical specialization in world trade. Journal of International Economics, 54(1), 75-96.

  • Hummels, D., Lugovskyy, V., & Skiba, A. (2009). The trade reducing effects of market power in international shipping. Journal of Development Economics, 89(1), 84-97.

  • Jansson, J.O. & D. Shneerson "Liner Shipping Economics". Chapman & Hall, 1987

  • Koopmans, T. "Tanker Freight Rates and Tankship Building". Haarlem-de Erven F. Bohn N.V., 1939

  • Midoro, R. & Pitto, A. (2000). A critical evaluation of strategic alliances in liner shipping. Maritime Policy & Management, 27(1), 31-40.

  • Stopford, M. "Maritime Economics 3rd edition". Routledge, 2009

  • Sanchez, R.J., Hoffmann, J., Micco, A., Pizzolitto, G.V., Sgut, M. & Wilmsmeier, G. (2003): Port Efficiency and International Trade: Port Efficiency as a Determinant of Maritime Transport Costs. Maritime Economics & Logistics, 2003, 5, (199-218)

  • Sjostrom, W. (1989). Collusion in ocean shipping: A test of monopoly and empty core models. The Journal of Political Economy, 97(5), 1160-1179.

  • Sys, C. (2009). Is the container liner shipping industry an oligopoly? Transport Policy, 16(5), 259-270.

  • Yannopoulos, G.N. (ed.) "Shipping Policies for an Open World Economy". Routledge, 1989

  • Zannetos, Z.S. "The Theory of Oil Tankship Rates". The MIT Press, 1966