ABSTRACT
This chapter analyzes the potential future consequences of the concentration processes and the problem of potential dominance position abuse in the liner shipping industry, which might reach far beyond creating barriers for new entrants and privileges for setting prices. It outlines the basics of economic theory of industrial organization and the current state, and addresses the results and consequences. The chapter describes the main characteristics of the liner shipping industry to understand the current situation and relevant significance. The combination of external factors, such as economic growth and other elements produce a cocktail of dominance abuse. There has been an interrelation of three main factors: concentration, cyclical effects and economies of scale, scope and density. The chapter discusses the potential risks and tries to identify signals towards an evolving hangover. One indicator to identify the potential first signs of the "hangover" is freight rates.
