Abstract
tions of the steamship conferences (cartel-like associations of ship lines) that determine the ocean freight rates on the nations' major trade routes.1 This article will hypothesize how conference ratemaking can injure a country's trade, and how a national-flag line can benefit a nation by moderating conference rates. The hypothesis will then be tested by comparing the rate-making behavior of U.S.-flag firms with that of the foreign-flag members of the same conference to see if nationality does influence firm behavior. The hypothesis is based upon nationality and not the stage of development so that the U.S. case can serve as a proxy for the case of the developing nations where the necessary data are lacking.
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