What would happen if there was no system of common carriage in ocean shipping?

Prepare for the Certified Export Specialist Test. Use flashcards and multiple-choice questions, each with hints and explanations. Get ready to excel!

In ocean shipping, a system of common carriage allows for a standardized approach where carriers offer their services to the public without discrimination, facilitating a smoother and more inclusive shipping process. If this system did not exist, the industry would likely revert to contract carriage, where shipping agreements would need to be negotiated separately with each carrier.

In a scenario without common carriage, shippers would have to engage in negotiations for each shipment, determining terms, costs, and conditions without a common framework to rely on. This would lead to a fragmented system where each carrier may impose different terms, making it more complex and potentially more expensive for shippers, as they must traverse individual contracts rather than accessing a standard service.

The other choices do not align with the implications of removing common carriage. An all-carrier system wouldn't occur since multiple carriers would still operate, shipping costs would not standardize without common terms, and there would still be multiple shipping options available since many carriers would continue to compete in the market, even if on a contractual basis.

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