THE GEOGRAPHY OF TRANSPORT SYSTEMS

Source: Germanischer Lloyd.
Singapore and Rotterdam are among the world's largest container ports and are thus prone to economies of scale. The introduction of the Emma class of 12,000 TEU containerships in 2008 marginally improved the shipping rates. The potential introduction of a "Malacca Max" class of 18,000 TEU containerships would further reduce rates per TEU but would impose higher port equipment costs, such as cranes able to handle such ships. There is thus a balance between the benefits that maritime shipping companies derive from economies of scale and the additional capital investment this process imposes on port terminals.