Shipping Costs and the Controversy Over Open Registry

Abstract

Concern with safety in particular has resulted in efforts to phase out open registry of ships. This study employs a transcendental logarithmic framework to highlight some of the cost implications of adopting such a policy in terms of the higher shipping costs which would result. It compares the cost functions of open registry ships with those of ships registered under traditional mnaritime nations in order to offer some insights into the possible impacts on shipping markets of withdrawing the opportunities for shippers to elect for open registration.

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