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The cost to users of substandard shipping

Filetype[PDF-417.37 KB]


  • English
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    Details:

    • Corporate Creators:
      Simpson Spence & Young, Ltd.
    • Subject/TRT Terms:
    • Resource Type:
      Research Paper
    • Corporate Publisher:
      Organisation for Economic Co-operation and Development
    • Abstract:
      The problems posed by ?substandard? shipping came to mounting prominence in the 1970s as an increased number of casualties arose involving badly-maintained tonnage. Various parties in the maritime industry can derive benefits from disregarding agreed standards concerning vessel quality, both in terms of a ship?s physical condition and its operation. Apart from ship-owners and Flag States, these parties can include charterers and classification societies. Conversely, the existence of substandard ships imposes various costs on quality conscious parties, particularly other ship-owners, charterers, cargo interests, P&I clubs and marine underwriters. There is a strong incentive for charterers and cargo owners to see the continued existence of low quality ships, as these help to facilitate inexpensive carriage of their cargoes. Conversely, any move towards eliminating such vessels implies an inevitable rise in freight expenses. This study seeks to identify and measure the direct costs incurred by the users of ships that are ?substandard.? Appendices, graphs, tables, 79 p. Also available in French in http://www.oecd.org/dataoecd/27/20/1827505.pdf.
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      PDF
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