Competition Through Cooperation in Liner Shipping

International liner shipping has operated through a mixture of competition and cooperation since its beginnings in the mid-nineteenth century. Economists have spent nearly that long trying to understand the reasons for the different kinds of cooperative agreements used in the industry, from shipping conferences to strategic alliances and consortia. These agreements have set prices, set output, shared cargo space, and imposed contractual restrictions on shippers. The chapter explores and surveys the economic models that have addressed the question of whether these agreements are designed for efficiency, in pursuit of monopoly, or perhaps both. It also tries to summarise what is known empirically about these agreements and where there are disputes that should set an agenda for future research in the field.