The Impact of Hub and Spokes Networks in the Mediterranean Peculiarity

Abstract

The tendency towards consolidation of the liner shipping companies requires the development of the 'hub and spokes' model in the Mediterranean as well. In this framework, we argue that the network model will be reinforced as compared to the 'point to point' model. However, only a few studies are available to confirm the advantageousness of this choice. We therefore propose a methodological analysis of transport costs in a 'hub and spokes' system in comparison to a 'point to point' system, both in general terms and in the specific framework of the Mediterranean. The relative costs of the two alternatives were simulated utilizing the experience of the Mediterranean hub port of Gioia Tauro and with reference to the most recent literature on this subject.

Keywords: containers, costs, transshipment, intermodality, point-to-point networks, hub & spokes networks

JEL Classification: L100, L920