Flawed Container Transport Business Models

This paper is an adaptation based on presentations given in 2001, including the Marine Money Hong Kong conference in November 2001.

Containerized transport is a high-growth volume business (7-8% long- term growth versus 2-3% bulk cargo). Container ship- ping is run by organized, internationalized firms that are able to benefit from economies of scale to a far greater extent than bulk transport.

So you’d expect efficient division of labor and ration- al economic behavior within the transport organization to run a business with the ultimate aim of maximizing shareholder and owner returns. Not so.

The main reasons for the failure of industry thus far, in our view, are the following:

This is only an excerpt of Flawed Container Transport Business Models

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