Table 1 Potential impact of vertical... | Emerald Publishing

Table 1

Potential impact of vertical integration in the maritime world: a literature review

Efficiencies gained by vertical integration	Vertical integration competition concerns
Increases efficiency of cargo movement (OECD/ITF; Transport Research Centre (2008))	It may be detrimental to welfare. Agreements between different service providers (i.e., shipping lines, terminal operators and land (railway and road) transport operators may limit or hamper competition for space and traffic at ports (Álvarez-Sun Jaime et al., 2015)
Reaps all of the benefits of intermodal transport (Frémont, 2010)	Increases barriers to entry for potential competitors Parola et al. (2015)
Minimises transactions costs, reduces operational time for cargo handling, and ensures security and service quality standards that will certainly be beneficial for shippers (OECD, 2011)	Vertical integration and the associated bundling of services might act as a barrier to entry in container handling (de Langen and Pallis, 2006; Vanelslander, 2011; Parola et al., 2015)
Enhances the corporate performance and corporate value by reducing transaction costs. Improves efficiency of their supply chain operations (Parola et al., 2015)	The involvement of liners in terminal operations shifts balance of power in the market, with increasingly large shipping companies exerting more control. As an example, the ECT terminal operator, although being the “de facto monopoly cargo handler” in Rotterdam, eventually had to yield to the demands of Maersk (Heaver et al., 2000)
Allows liners to provide better service (Álvarez-Sanjaime et al., 2011)	Substantial concentration in the stevedoring market and the emergence of dedicated facilities in northern Europe, make this co-operative-competitive paradigm stronger and stronger (Parola and Musso, 2007)
	In order competition to be protected, specifically transparent regulations may protect the access and the equal business opportunities of the non-integrated shipping companies to the essential facilities of the strategic and vital terminals (OECD, 2011)
	A horizontally and vertically integrated transport chain raises the problem of competition in a situation that could turn into a monopoly (Frémont, 2010)
	Horizontal and vertical integration result in a power concentration of port customers and an increase in their bargaining power over port managements (Cetin and Cerit, 2010)

Efficiencies gained by vertical integration	Vertical integration competition concerns
Increases efficiency of cargo movement (OECD/ITF; Transport Research Centre (2008))	It may be detrimental to welfare. Agreements between different service providers (i.e., shipping lines, terminal operators and land (railway and road) transport operators may limit or hamper competition for space and traffic at ports (Álvarez-Sun Jaime et al., 2015)
Reaps all of the benefits of intermodal transport (Frémont, 2010)	Increases barriers to entry for potential competitors Parola et al. (2015)
Minimises transactions costs, reduces operational time for cargo handling, and ensures security and service quality standards that will certainly be beneficial for shippers (OECD, 2011)	Vertical integration and the associated bundling of services might act as a barrier to entry in container handling (de Langen and Pallis, 2006; Vanelslander, 2011; Parola et al., 2015)
Enhances the corporate performance and corporate value by reducing transaction costs. Improves efficiency of their supply chain operations (Parola et al., 2015)	The involvement of liners in terminal operations shifts balance of power in the market, with increasingly large shipping companies exerting more control. As an example, the ECT terminal operator, although being the “de facto monopoly cargo handler” in Rotterdam, eventually had to yield to the demands of Maersk (Heaver et al., 2000)
Allows liners to provide better service (Álvarez-Sanjaime et al., 2011)	Substantial concentration in the stevedoring market and the emergence of dedicated facilities in northern Europe, make this co-operative-competitive paradigm stronger and stronger (Parola and Musso, 2007)
	In order competition to be protected, specifically transparent regulations may protect the access and the equal business opportunities of the non-integrated shipping companies to the essential facilities of the strategic and vital terminals (OECD, 2011)
	A horizontally and vertically integrated transport chain raises the problem of competition in a situation that could turn into a monopoly (Frémont, 2010)
	Horizontal and vertical integration result in a power concentration of port customers and an increase in their bargaining power over port managements (Cetin and Cerit, 2010)