Blanket” rate structures apply uniform rates to a geographical region in spite of differences in the costs of carrying the goods. They are generally utilized by carriers to achieve some strategic objective, whether rate simplification, to be more competitive, or to meet some political objectives. While blanket rates are common in land transportation, the Hawai’i waterborne trade offers a unique example of this pricing mechanism. Further, given new and potential competitive factors in this trade, this is a unique case study for those interested in transportation pricing and the economic impacts of changes in the competitive struct ure in an isolated market.
Marcus, Henry S., Bess, H David. & Valdez, Michael E. (2005). Common fare: an example of “blanket” rates in Hawai’i waterborne trade. Journal of Transportation Management, 16(2), 14-24. doi: 10.22237/jotm/1125446580