Problem

Liner shipping cartels

Other Names:
Multimodal transport monopoly
Nature:

Many problems connected with liner shipping relate equally to multimodal transport. Unchecked spread of containerization can lead to consortia power, reinforcing the cartellist grip of liner conferences on their ocean trades and inland transport infrastructures. However, restatement in the Multimodal Transport Convention of the public rights of states to regulate and control multimodal transport operations at the national level, and to take all other steps in the national, economic and commercial interest, mitigates the potential of the consortia, although these developed mainly as a result of the introduction of container systems, which necessitate very high capital investments in vessels and equipment and therefore will not readily dissolve. International multimodal transport operators (MTOs) of developed countries have come to dominate as containerization has spread. There is an inadequate participation of indigenous MTOs in the trade and insufficient protection of shippers' interests in developing countries. Also, a number of questions as to the liability of MTOs for loss/damage/delay to cargo, and correct documentation remain open. The Convention on International Multimodal Transport Goods, adopted by consensus in 1980, was addressed to these concerns which impact the developing countries. However, these countries have insufficient financial and technical resources to create or improve their own national transport capabilities especially in order to facilitate the implementation of the Multimodal Convention.

Broader Problems:
Cartels
Monopolies
Strategies:
Operating a monopoly
Values:
Cartel
Monopoly
Related UN Sustainable Development Goals:
GOAL 9: Industry, Innovation and InfrastructureGOAL 10: Reduced InequalityGOAL 11: Sustainable Cities and Communities
Problem Type:
E: Emanations of other problems
Date of last update
08.05.2019 – 19:05 CEST