Sailing quotas are, however, probably easier to enforce. Sjostrom, Liner shipping contractual terms is a substantially different than other shipping contracts; the relationship between shippers carriers is regulated by standard printed forms of contracts e. Munari, The early start of liner conferences Liner shipping cartels started due to the presence of Beggar thy neighbor policy in international trade, allowing the maritime nations to extract wealth from exporting countries as well as from non-maritime economic systems served by foreign shipping lines.
The liner ship owners do not have competitive market model since the fixed cost are higher than the variable costs, the entering and exiting the liner market is not that easy cause of the shifting cost, and the vessel does not correspond to and much bigger than the cargo unit it carries, which make it difficult to the carrier to adapt the offer to match the change in demand.
The perfect competition model could not be implemented in the liner shipping business, since the competition between liners carriers in pricing could start a rate war and the competition would be destructive. All of the above mentioned reasons along with the benefit of having reliable and constant shipping services carrying goods traded in world markets with a stable tariff made the cartelization of liner shipping accepted and welcomed too.
Munari, The oldest and most important kind of cartels is the liner shipping conference. Munari defined the conference as is a cartel agreement among shipping lines serving the same route; its scope can encompass one or both directions of trade, and normally the latter is the preferred option. Conference members fix and agree on schedules, in order to rationalize the capacity and the frequency of services offered to their customers, as well as the tariffs that are publicly available.
Munari, After the domination of containerization over break- bulk modes of seaborne trade new forms of cooperation between liner ship owners developed. Reference is made to the so-called consortium agreements, or consortia, i. In a consortium, pooled vessels are normally identical, and cross-slot charters are executed with a view to reserving for each member of the consortium a fixed portion of the capacity of all vessels used in the service.
Port terminals used by the members are clearly the same 4. Sometimes joint offices are also established, yet each member maintains its independency in respect of pricing and conditions of transport with clients. Munari, At the s the UNCTAD published the code of conduct for liner conferences to improve the liner conference system, and recognize the need for a universally acceptable code of conduct for liner conferences, taking into account the special needs and problems of the developing countries with respect to the activities of liner conferences serving their foreign trade.
UNCTAD, Chapter 2, Article 1 in the code of conduct for liner conferences stated that Any national shipping line shall have the right to be a full member of a conference which serves the foreign trade of its country UNCTAD, After the publication of the code of conduct for liner conferences third world countries were able to enter the conferences and be part of it.
Cargo carried by the conferences was allocated according to the formulas, i. Munari, The freight rate mechanism Like any business area the supply and demand is the orchestra maestro who controls the product pricing. In the liner shipping business area its the same but we have other factors t hat affect both the demand and the supply. The five determinants for sea transport demand are political factors, the world economy, seaborne commodity trade, average haul, and transport costs. Lai, And regarding the supply the five determinants for sea transport are World working fleet, Fleet productivity, Shipbuilding production, scrapping and losses, and Freight revenue.
Stopford, The freight market is the middle layer that links the supply and demand as shown in figure 1. It depends on the negotiations between ship owners and shippers to establish a freight rate. This freight rate 6. The freight rate is inversely proportional with the number of vessels in market. Once this freight rate is established, both shippers and ship owners adjust to it and eventually this brings supply and demand into balance. Stopford, The supply of sea transport is influenced by the freight rate. This is a mechanism that the market uses to motivate decision makers to adjust capacity in the short term and to find ways to reduce costs in the long run.
On the demand side, the demand function shows how shippers adjust to changes in the freight rate.
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Figure 2 illustrates the freight rate mechanism. Sellers and buyers transact in the market and their supply and demand requirements cause the price to move. The going price is an equilibrium value of the price. This can be explained if we combine the demand and supply curve diagrams. The sea transport demand function shows the quantity of sea transport shippers would purchase at each level of the freight rate.
The sea transport supply function shows the quantity of sea transport carriers would offer at each level of the freight rate. The supply and demand curves intersect at the equilibrium price in the shipping market, which determines the freight rate at which the quantity demanded by shippers for shipping services is equal to the quantity supplied by carriers.
At this point, both shippers and carriers reach a mutually acceptable freight rate level. Lai, Pricing liner services Due to the large amount of fixed overhead needed to operate a ship, the pricing was not that easy to handle.get link
ISBN 13: 9783642274183
And the procedure was complicated due to of its variability. If the ship owner decided to use the marginal cost pricing, he will face a great loss if the demand is low. As shown in figure 3. Marijana Cvetkovic Marijana Cvetkovic. Actopolis-City: Belgrade Cultural worker and activist. Co-founder of Station Service for contemporary dance and Nomad Dance Academy, a Balkan platform for the development of contemporary dance and the performing arts.
Lecturer at the University of Arts in Belgrade. Works with museums. Publishes texts and edits books on dance, performing arts, cultural policy and museums. All these fields are approached through critical theory and practice, institutional critique and transdisciplinarity. Mihai Dutescu Mihai Dutescu. Actopolis-City: Bucharest Mihai Dutescu was born in He was awarded a PhD degree for research in the field of contemporary urban vernacular developments.
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Mihai Dutescu is the author of two poetry books and one novel and has received several literary prizes. Poems and fragments of prose have been translated into English, French, Swedish and Czech. Current research interests include vernacular and non-architectural phenomena within contemporary cities, speculative real estate developments and emerging post-communist societies. She has initiated and realised projects dealing with visual art in public and private spaces, often in the form of participatory projects.
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Independent cultural production is her central focus, though she has collaborated with different institutions from Serbia and abroad. Involved in organisational, artistic and curatorial practice in visual and socially engaged arts. Participates in research projects and activist campaigns. Occasionally writes about cultural and artistic production. Works in the Cultural Center Rex in Belgrade, as the initiator and coordinator of the debate programmes.
Tadej Kurepa: Journalist from Belgrade. His professional interests are media, publishing, cultural theory and the theory of ideology.
About this book
The area of his closest interest is political cinema and film in general as means of political communication. Whether on a territorial or site-specific scale, his practice often digs into the social and political dimensions of space, analysing and disturbing the lines that divide public and private realms. He worked as an art director and set designer of a theatre piece in Algeria, which dealt with the issue of illegal immigration across the Mediterranean sea. In China he designed a landscape installation which honours the people whose villages have been destroyed in the name of new urban development.
During his stay at Harvard University he wrote Excavations, an experimental book that aims to translate reading into an authentic spatial experience. Currently he is editing the Life of Art magazine for contemporary visual arts published by the Institute of Art History in Zagreb. He explores the intersections of history, human rights and culture through prisms of photography, text and installation. Has focused his recent work on the issues of Holocaust history and remembrance as the right to minority self-interpretation and representation.
Panos Sklavenitis Panos Sklavenitis. That is why he has an attachment to the Greek sun and the Greek sea. When he was young he attended PIKPA school, an institution offering education to children with special needs. Like the artists of the Russian avant-garde, Sklavenitis worked for many years in applied arts as a graphic designer, until he also discovered an interest in the fine arts. In his work he focuses on masquerade, satire, over-identification and performative methods.
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He collaborates closely with anthropologists and archaeologists in order to study subjects in the culture industry and other subjects relating to our civilisation. Sklavenitis is an experienced teacher, since for many years he has made his living as a drawing teacher.
He frequently uses his students in his projects. Pelin Tan Pelin Tan. Raluca Voinea Raluca Voinea.
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Since she has been co-director of tranzit. Here she is organising a programme of exhibitions and discursive events focused on the relationships between contemporary art and political determination, stimulating local production and debate and working in a trans-disciplinary manner. Linking the Existing with the Imaginary — a travelling public space platform in Berlin, Warsaw and Bucharest ; The Department for Art in Public Space , a small platform for discussions and artistic projects; and Public Art Bucharest Roberto Vertieri Roberto Vertieri.
After degree worked as graphic designer and film maker. Currently studying film directing at film. Work and research focus on the development and contradictions that are constantly produced for and by societies and Nature. He is the author of the book Zagreb, Public Space. He is also the author of a number of artistic interventions. Selma Banich Selma Banich. She has authored a series of artworks, created independently or in collaboration with other artists, groups, and initiatives.
She uses the medium of dance performance, performance art and action in the public space, both on film and in the theatre, and at the same time is engaged in the field of non-formal education and practice-based research. While conceiving and presenting her own work, she strives to give priority to ethics over aesthetics, empathy over utopia, art making over politics, and nature over society, thus expanding the context for further learning, creativity and participation in the organisation of labour. Selma Banich is the co-founder and programme coordinator of ekscena, a prize-winning platform for education and research in the performing arts.
When not working in theatre, she lives a simple life as a lover of nature, mankind and web 2. Her work derives from specific localities and long-term engagements and is motivated by the possibilities of collective production, mobilisation and commoning. She works with photography and video as forms of essay and enjoys printed matter.