Economic Analysis of Liner Shipping Rate Rationalization and Deregulation
In 1990, when the terms of reference were drafted for the SRRS by the PTSR (which worked from an earlier draft written by MARINA), the SRRS team was expected to provide recommendations on an initial phase of cargo rate deregulation. However, while the SRRS was still in its early stages, the Philippine government decided that reefer box shipments, transit traffic, and livestock shipments should be deregulated and fork tariffs (±5 percent from reference points for each of four commodity classes) introduced. This early action of the government enabled the SRRS team to examine the early effects of changes in rate regulation and thereby gain some insight into the effects of cargo rate flexibility and deregulation.