Economics of Scale in Container Ship Costs

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shipping analysis and trade
Published 09/14/2016 by William Murray

Economies of Scale in the Container Fleet
• How has the fleet changed in the past decade?
• What does the fleet look like today?
• How are capital, voyage, and operational costs influenced by ship size?

Conclusion
• Economies of scale exist in all categories, although there may be a point of diminishing returns
• Greater economic conditions play a large role
• Consider externalities, particularly in regards to routes, infrastructure, and turn around time
• Trends have persisted over time, but there has been variability in recent years
• Overcapacity?

 
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