Although economies of scale in container shipping convey several advantages, such as lower unit costs and more capacity, they can also generate externalities for a port. They include:
- Externalities of maritime and port operations. The size and draft requirements of larger ships reduce the number of ports able to accommodate them, implying fewer options. This may involve pressures for expensive capital dredging projects.
- Externalities in yard operations. With the same volume, economies of scale create compressed surges in terminal and yard operations.
- Externalities in gate and hinterland operations. In addition to surges in gate access, there are supply chain effects since the frequency of shipments can change, impacting lead time and inventory levels.