Question

What should be your issue concerning stipulation of a port of shipment and destination ?

Answer 1

There are a number of issues to be taken into account while considering the stipulation of a port of shipment and destination. First, it has to be decided what goods are to be shipped in and out of the port and which parties would get the licence to do so. Secondly, we must decide on the freight charges to be fixed for the shipping of these goods. It has to be decided at what timings and seasons will different goods be allowed to be shipped and whether the rates will vary over the year. For instance, the shipping may become more difficult during rainy season and may involve additional charges. Similarly, it has to be decided whether the good is a perishable good which will make it's shipping more risky and costly. It has to be decided whether they are to be allowed and the charges be fixed accordingly. Most importantly, it has to be decided on the kind of vessels to be running from that port, their capacity has to be decided and the toughness of the built has to be decided. The costs of installing the vessels and running the port have to be compared with the expected benefits of the port. Only if the net expected benefits are positive, the port is likely to be set up.