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Published:
Last Updated:
21 Jul 2019

Multiple Ports of Call versus Hub-and-Spoke

Containerized Maritime Trade between West Africa and Europe Author: Gylfi Palsson

Hub-and-spoke systems in containerized maritime transport often bring significant cost advantages, benefiting the various parties to the trade. Yet, comparison of a unit cost of the best example of a current multiple port call system with a hypothetical optimal hub-and-spoke system reveals only marginal cost benefit for the region. In addition, all the cost benefit would befall the hub itself, while costs for all other ports in the area would be higher. The most effective way to cut the total logistics cost for West Africa is to improve current practices, rationalize customs operations, weed out corruption, increase port efficiency, and cut through red tape in order to create a commercial and user-friendly environment.

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