Sea Freight Logistics and Governance in Global Supply Chains: A Transaction Cost Economics Perspective

This paper interprets sea freight logistics through transaction cost economics, treating ocean freight as a governance problem spanning multiple handoffs, institutions, and counterparties. It proposes a stylized asset specificity × uncertainty framework to predict when firms rely on spot markets versus relational contracts or hybrid/quasi-integrated arrangements, and derives propositions linking shipment attributes to governance choice. The analysis connects these governance predictions to practical ocean freight service types (FCL, LCL, dry bulk, RoRo) and closes with implications for forwarder selection, risk management, and sustainability.