Inter-firm relationships and shipping services: the case of car carriers and automobile importers to the United States

Abstract

This paper is an initial exploration of inter-industry relationships and linkages in the context of automobile imports to the United States. It is our contention that the nature and structure of the engagement between automobile importers and shipping lines is central to understanding the evolution of the car carrier trade. Building on the literature on transactions costs, and supply and value chains, we show that the regimes currently governing car carriage services range from markets to vertical integration via network forms of engagement. We illustrate this through a detailed discussion of Japanese inter-firm networks and an examination of automobile import data to the US from 1980 to 2000. The findings raise important questions for future research on the impact of inter-industry relationships in various strategic decisions of steamship lines, shippers and port authorities including port entry, port choice and routeing, technological and investment choices, and trajectories of supply chain development.