Closed Conferences, rationalization, and U.S. maritime policy

A SHIFT in U.S. liner shipping policy toward greater cartelization via closed conferences and other devices would benefit the existing conference carriers, but its ultimate impact on shippers and U.S. foreign trade is not clear.The carriers allege such a policy will lead to rationalization, lower rates, and improved trade conditions.However, a Close look at the practical aspects of rationalization indicates there are many Pitfalls.A number of relevant issues have not yet been raised, let alone addressed, in the course of the ongoing debates.Rigorous examination of the issues should be undertaken as part of the policymaking process.This non-empirical paper is meant as a beginning, to more fully examine the issues, and pose Pome of the relevant questions, in hope this will better frame the debate and lead forward toward clearer answers.