Answer to Question #317407 in Economics for james

Question

Identify and explain the maritime transport service providers that form maritime transport chain.

Answer 1

A maritime transport chain is a network over which carriers and ports provide services for the movement of cargo (provided by shippers) over this network. In order for a maritime transport chain to exist, three parties – carriers, ports, and shippers – must be in agreement with the choice of this chain. 

Shipper is the person or company who is usually the supplier or owner of commodities shipped. Also called Consignor. Carrier is a person or company that transports goods or people for any person or company and that is responsible for any possible loss of the goods during transport.

While carriers and ports are providers of chain services, shippers are users of chain services. Shippers not only incur the prices charged by the carriers and ports for their services but also incur logistics costs (related to their cargo) for these services.