CAPÍTULO I MARCO TEÓRICO
1.3 Bases teóricas 1 Modelo teórico
1.3.2 DIRECCIÓN DE RELACIONES PÚBLICAS
1.3.2.2 Identificación de los tipos de públicos
il • !:
i;
“ Reduction of the trade woluiw
i!incentives to efficiency and cost control, diminishing the flexibility of ships and raising costs for shippers and related sources of employment.
In other words, most forms of cargo reservation, or other methods limiting access to cargo, interfere with the rational use of resources and as a result increase cost, reduce service quality, and obviously limit competition. (12) As is shown in Figure 3.2, cargo reservation would bring about damage to the national economy.
Theoretically, free market system without any intervention is the best way to expand trade and promote world economy. As the market price to which the perfectly competitive firm responds is set by the forces of demand and supply in perfect competition, shippers are able to use vessels with the most favourable freight rate.
A next simple model, which is shown in Figure 3.3, shows the negative impact of sharing on the basis of a 40 - 40 - 20 ( one type of cargo reservation ) or any other share allocation. Given D1 is the demand curve on the liner route under consideration and D2 = 0.6 D1 is the 60 % demand curve. If PI was the conference freight rate before entry of the national shipping, and if because of higher costs of the national shipping members, the conference agrees to raise the freight rates to P2 > PI, then (P2 - PI) Q1 - additional profit of non-national shipping conference members who earlier accepted PI which included marginal profit and (P2 -PI) Q3 = additional cost to the country's trade of carrying Q3. Finally <Q2 -Q3) is the reduction in trading volume resulting from the increase in freight rate.(13)
(Figurt 3.3)
iiNPU
mm or the
inmctor
mnoihoeinq
It would be harmful for the shippers and the national economy. In relation to trade, a competitive manufacturing industry requires a flexible and open
international shipping system in order to reduce cost.
Next, the developing countries should have a stronger position in the long run. As comparative economic advantages in providing shipping services are heavily in favour of the developing countries, a major shift from the developed to the developing economies is inevitable. Participants in the shipping industry, such as government, banks and owners in the developed countries have begun to recognize this fact. Thus the EEC Report on Common Transport Policy ( Bulletin of EEC Supplement 5/85 )
identified the erosion of the comparative advantages of European ships in the traditional areas of shipping activity. As can be seen from the Figure 3.4, the fleets of the traditional maritime nations are decreasing and
(Figure 3.4)
T R El f■•■J [) S 0 F~ T R
A.D! Tl 0 N L M A ,R fi ’ i Fv'!
fT I L I pf! ri.. <' •+3 nn tn ni! R3 34 nn nn n?- on Bfil t' itiprin ■V un 1,13 Eli" I). U Wnr,v!7j' \T p* Dsource : Shipping Statistics 1987 - 1989, Institute of Shipping Economics and Logistics, Bremen.
Professor P. Bauchet gave a lecture at the World Maritime University that the oldest industries of today's most 3-dvanced societies relocate to other because these activities no longer correspond to the country's age of development. And their requirements give an edge to the new nations,making the move inevitable.
In 1979, W.W.Rostov divides these industrial activities into three categories according to their degree of industrial complexity and the elasticity of demand for their products. There are those which appear at the early
stages of industrialization in countries where the per capita income is about $200 ( I think that it has to be adjusted to $400 in 1989 ): especially textile, food, shoe and leather industries. Next is the more advanced stage of heavier industries such as metallurgy and shipbuilding. And finally a post-industrial stage of more recent activities including new activities in the service sector, but also high-tech industries and durable consumer goods. This implies that shipping industries including transport services belong to the "middle-age" of development in countries whose per capita income is between $400 and $2,000 (adjusted to $800 and 4,000) (14)
Therefore, some countries which reached in second stage increased their market share rapidly during last 10 years. Other developing countries will join to this stage upto their economic development because comparative advantage of shipping is moving to the developing countries. As a result, liberalism will give more benefits to t he developing countries in the future.
Finally, shipping should allow free entry because it has international and commercially-oriented characteristics. If one country reserves its cargoes, foreign flags could be excluded from the transport market. In addition, lots of countries follow protectionism to complement their fleets' weakpoints. For these reasons, shipping would change the internal business and vessels could not find cargoes on inbound voyages. It is harmful for the national and world economy, because there is a close relationship between a transport system and economic development. If one country discriminates certain flags, it is clear that the discriminated country should adopt countervailing action, such as retaliatory flag discrimination. This is
also harmfu trade. Theref ore, competition shipping, intervention
for expanding world welfare through the
libera is th becaus disto
lists insist that f e best way to increase e any national and rt market situation.
ree and fair ef ficiency in international
Chapter IV ECONOMIC EFFECTS OF PROTECTIONISM
4.1 Current Shipping Environment
The legislative trends of the developing world in recent years have been towards more international regulation of shipping through multilateral conventions, bilateral government-to-government agreements, and unilateral measures to favour and support national carriers.(15)
On the other hand, the reality of the freight market and shipping practices have been leading towards a more highly competitive international environment in shipping.
Firstly, I intend to observe demand for shipping. Between 1967 and 1974 seaborne trade grew by 12 % per annum. As shown in Figure 4.1, from 1974 to 1988 there was a slight growth <2-3 %) in seaborne trade.
Demand for shipping has continued to fall since 1960 in the oil trade, iron ore and several sectors of the general cargo markets. Even though there is a slight increase of seaborne trade from 1986, the aggregate transport task measures by tonne-miles has dropped by 3.5 thousand billion since 1979.
The reasons for reduced demand are economic recession, energy conservation, reduced trading distances (especially the oil and EC market ), land bridges and diversions of cargoes from sea to land and air modes.
The supply of shipping has not appreciably diminished over this period. Figure 4.2 give general trends in the
world fleet.
(Figure 4.1)