Why did the EU decide to extend shipping alliances’ rights? This article in the Loadstar points to a short piece on Linked in calling attention to a study by Olaf Merk (and others) critiquing alliances and what they have done to the ocean shipping and port industries.
The study points out alliances were useful in the distant past, but today they are serving to consolidate ocean shipping, reduce offers and most every service, and they also put great pressure on ports to engage in competition on facilities, a costly endeavor that results in over-allocation of capital for the use of few lines.
I’ve attached the Merk etal. article below. He’s an eminent port and maritime economist, and what he writes should be taken seriously.
We’ve already seen and heard of many instances where business incentives granted by governments to firms moving in have not produced results the politicians wanted. Why is this? Which incentives work? Finally there’s a study that sheds light on this. It’s important advice for local and regional leaders. One should always take economic research with a grain of salt; but if even a few awful cases could be prevented the benefits for local economies would be great.