The market of liner shipping Claudio Ferrari Organization of maritime transport 18th century - colonies military and commercial sailing vessels industries international maritime trade raw materials and finished products sea adventure uncertain duration of voyage
Source: WTO, 2002
Source: Fearnleys, Review 2001
Parcel Size Distribution (PSD)
Parts of ships
TRAMP SHIPPING - CHARTERED VESSELS (1)
LINER SHIPPING (2)
Source: Erasmus University, Rotterdam
Source: Drewry, 2004
Demand for shipping services is rather inelastic.
It is so because demand for shipping is a derived demand, so in the short term even a great increase in shipping rates have not effects on the production functions of firms.
In the long run, firms may consider alternative means of transport, but sea transport is much less expansive than overland means of transport (road, rail).
If the ship load factor is below 80%
vanishes any potential benefit of size scale