Regulated International Cartel of Shipping Carriers

Shipping carriers, operating as an unregulated or lightly regulated international cartel, are organized into three dominant alliances that control over 95% of Pacific trade. These carriers also manage terminals at major ports like LA and Long Beach, giving them a stake in ensuring cargo flow. The carriers benefit from importers' fear of delays, allowing them to demand high handling charges. They capitalize on managed scarcity, akin to airlines charging exorbitant prices during bad weather and controlling runway clearing, to maintain high profits.