Article
Economies of Speed in Sea Transportation
Investing in large ships has been the traditional way of increasing the capacity of cargo transportation and raising the profitability of shipping through higher freight income. The economies of scale have been achieved, however, at higher fixed costs and higher operational risks because of fluctuating demand for transportation services. A more flexible way to increase the cargo carrying capacity is to raise the cruising speed by improving ship hull design and engine power, resulting in a larger number of round trips per year. The additional benefit of higher frequency is faster delivery and responsiveness to customer service, implying also the possibility of charging higher freight rates. The fast ship projects have, unfortunately, a history of failure due to excessive fuel costs and ports congestion.
Judul | Edisi | Bahasa |
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Economies of speed in sea transportation | Vol. 24 Iss 8 pp. 33 - 41 | en |
Economies of speed in sea transportation | Vol. 24 No. 8, 1994, pp. 33-41 | en |