Container shipping: A market equilibrium perspective on freight rates formation post-Covid-19

The unprecedented container shipping freight rate levels post-Covid-19 are studied in a stochastic dynamic partial equilibrium framework. The proposed container marked model is calibrated on annual aggregate data from the two recent decades. The observed freight rate levels in 2021 and 2022 match a switch of competitive equilibria from Bertrand to Cournot competition. Whereas increased costs and reduced productivity play a role in explaining freight rates, these factors alone appear not to be able to justify the high post-Covid-19 freight rate levels.

• Record URL:
  • https://doi.org/10.1016/j.tra.2023.103917
• Record URL:
  • http://www.sciencedirect.com/science/article/pii/S0965856423003373
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/09658564
• Supplemental Notes:
  • © 2023 The Author(s). Published by Elsevier Ltd. Abstract reprinted with permission of Elsevier.
• Authors:
  • Tvedt, Jostein
  • 0000-0001-7313-768X
  • Hovi, Inger Beate
• Publication Date: 2024-1

Language

• English

Media Info

• Media Type: Web
• Features: Figures; References; Tables;
• Pagination: 103917
• Serial:
  • Transportation Research Part A: Policy and Practice
  • Volume: 179
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 0965-8564
  • Serial URL: http://www.sciencedirect.com/science/journal/09658564

Subject/Index Terms

• TRT Terms: COVID-19; Equilibrium (Economics); Maritime industry; Port capacity; Shipping; Supply chain management
• Geographic Terms: China
• Subject Areas: Economics; Freight Transportation; Operations and Traffic Management; Security and Emergencies;

Filing Info

• Accession Number: 01905844
• Record Type: Publication
• Files: TRIS
• Created Date: Jan 26 2024 10:02AM