An Economic Analysis and Study of the Ocean Liner Shipping Industry in Response to the Ocean Shipping Reform Act of 1998

The purpose of this paper is to determine how small, medium and large shippers react to changes in the ocean-liner shipping industry under the Ocean Shipping Reform Act (OSRA) of 1998. The focus is on the importance of negotiating contracts with carriers and the choice to use either a shipper's own leverage or the leverage of a third-party agent. I hypothesize that large shippers wi11 be more supportive of OSRA when negotiating favorable rates than small shippers. Data were collected from a wide variety of companies that ship from Pacific Coast ports to Asia. Our analysis implies that OSRA forces shippers to rely on their own clout or that of a third-party agent to gain desirable service contracts. Finally, the research describes desirable shipments from the perspectives of both carriers and the shippers.Mendez, Sylvia L. and Fred lnaba. An Economic Analysis and Study of the Ocean Liner Shipping Industry in Response to the Ocean Shipping Reform Act of 1998. WSU McNair Journal. Volume 1 (Fall 2001), p 48-55