The Handbook of Maritime Economics and Business by Unknown

Author:Unknown
Language: eng
Format: epub
Publisher: Lloyd's List

Managerial: refers to the relationship of the internal structure of shipping companies with the policy framework that is imposed. Thus the size and complexity of shipping organisations and the changing range of functions that shipping companies have incorporated has an impact in terms of policy-making and its implementation. The latter point is particularly important as shipping companies increasingly integrate vertically, absorbing logistical functions traditionally carried out by separate organisations but now incorporated within one company structure. Thus Maersk’s interests in the full range of logistics from shipping to trucking and agency work to air transport has implications for policy-makers and vice versa in that it is no longer shipping policy which is solely important but a range of policies from competition to industrial, transport to regional development. This increase in the range of functions undertaken by traditional shipping companies adds to the complexities and has also increased pressure on the industry to conform to a wider range of policy initiatives. The problems faced by the TACA operators in liner shipping on the North Atlantic in the 1990s is evidence of this in that they fell foul of competition policies of the EU in the area of inland trucking (being accused of being anti-competitive for whole transport journeys and not just shipping links as permitted under Regulation 4056/86 of the EU) rather than any specific shipping offence. It is only whilst the economic and logistical benefits of vertical integration for shipping companies remain greater than the potential complexity that comes with it (and the risks of falling foul of legislation) that this trend will continue.

A further example of complexity that changes within the managerial context can bring includes conflict within the liner industry again on the North Atlantic between the regimes of the EU and the FMC in the USA with their differing views on the permissible nature of liner conferences and also the option of including inland transport within overall conference legislation.

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