Contestability of Container Liner Shipping Market in Alliance Era

A cross section panel model is applied to estimate the effect that the Herfindahl-Hirschman Index (HHI) has on container freight rates for a sample of six major container liner shipping routes during 2009 to 2011. The estimated coefficient of HHI is non-positive and statistically insignificant, indi...

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Main Author: Enna Hirata
Format: Article
Language:English
Published: Elsevier 2017-03-01
Series:Asian Journal of Shipping and Logistics
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2092521217300044
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author Enna Hirata
author_facet Enna Hirata
author_sort Enna Hirata
collection DOAJ
description A cross section panel model is applied to estimate the effect that the Herfindahl-Hirschman Index (HHI) has on container freight rates for a sample of six major container liner shipping routes during 2009 to 2011. The estimated coefficient of HHI is non-positive and statistically insignificant, indicating that higher concentration level does not lead to high price and the container liner shipping market is contestable for the period under consideration. The suggestion that efficiency can be achieved without actual competition in a contestable market is highly significant for policy makers.
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spelling doaj.art-a0f19b8b3569491593a13aa722ad22662022-12-22T02:01:08ZengElsevierAsian Journal of Shipping and Logistics2092-52122017-03-01331273210.1016/j.ajsl.2017.03.004Contestability of Container Liner Shipping Market in Alliance EraEnna HirataA cross section panel model is applied to estimate the effect that the Herfindahl-Hirschman Index (HHI) has on container freight rates for a sample of six major container liner shipping routes during 2009 to 2011. The estimated coefficient of HHI is non-positive and statistically insignificant, indicating that higher concentration level does not lead to high price and the container liner shipping market is contestable for the period under consideration. The suggestion that efficiency can be achieved without actual competition in a contestable market is highly significant for policy makers.http://www.sciencedirect.com/science/article/pii/S2092521217300044Container Liner ShippingAllianceContestabilityLiner Freight RatesHerfindahl-Hirschman Index
spellingShingle Enna Hirata
Contestability of Container Liner Shipping Market in Alliance Era
Asian Journal of Shipping and Logistics
Container Liner Shipping
Alliance
Contestability
Liner Freight Rates
Herfindahl-Hirschman Index
title Contestability of Container Liner Shipping Market in Alliance Era
title_full Contestability of Container Liner Shipping Market in Alliance Era
title_fullStr Contestability of Container Liner Shipping Market in Alliance Era
title_full_unstemmed Contestability of Container Liner Shipping Market in Alliance Era
title_short Contestability of Container Liner Shipping Market in Alliance Era
title_sort contestability of container liner shipping market in alliance era
topic Container Liner Shipping
Alliance
Contestability
Liner Freight Rates
Herfindahl-Hirschman Index
url http://www.sciencedirect.com/science/article/pii/S2092521217300044
work_keys_str_mv AT ennahirata contestabilityofcontainerlinershippingmarketinallianceera