with limited vehicle-vessel choices. The optimum vehicle-vessel size will also be seen
to depend on the characteristics of the goods being shipped, with more valuable,
bulky, perishable or fragile goods generally requiring more frequent shipments in
smaller individual loads. This implies that the optimised total shipment distance, and
consequently the absolute levels of the transport rates for these types of goods, will
tend to be higher for any given geographical distance (Chisholm 1971), than for other
goods. However, competition and contestability in transport markets still implies that
the behaviour of transport rates with respect to the haulage distance and quantity will
be as described here.
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19
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