THE OPTIMAL SHIP SIZE

Abstract

The model of optimal ship size specifies costs at sea and in port as a function of size, and estimates the model coefficients by statisti- cal methods. The optimal size is obtained by minimising costs per ton at sea plus costs per ton in port. The model shows how optimal size varies as a result of changes in route characteristics and factor prices . The stability of the relationship derived provides the basis for develop- ment of a model for forecasting the future growth of ship size.