Determinants of European freight rates: The role of market power and trade imbalance

This paper investigates the determinants of freight rates between six European countries and 47 partners. The authors show that the inward freight rates are, on average, 23% higher than for outward ones, indicating that the cost of repositioning empty containers is mainly carried by European importers. Moreover, the authors have broken down the freight rates into basic ocean freight and surcharges in order to analyze the impact of each explanatory variable on these two components. It appears that basic ocean freight depends mainly on factors that define the structure of shipping lanes, while surcharges are more time sensitive.

Language

  • English

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  • Accession Number: 01517424
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Feb 27 2014 2:08PM