THE DEMAND FOR BULK SHIP SERVICES

The volume of transportation services is a product of quantities transported and distances implied by the trade pattern. A model to isolate the effect of freight rates and commodity prices on trade pattern is presented. The concept of relative demand is defined and a computational procedure to quantify this variable is presented. The data analysis is carried out for three different commodities, iron ore, coal and crude oil. Contrary to the generally held view about the demand for shipping services, it is shown that there is a significant elasticity in transportation demand for coal and iron ore with respect to the freight rate.

  • Supplemental Notes:
    • Norw. Marit. Res., 11 <1983>, p. 22 <No. 1> (5 pp., 5 ref., 2 tab.)
  • Authors:
    • Eriksen, I E
  • Publication Date: 1983

Language

  • English

Subject/Index Terms

  • Subject Areas: Marine Transportation;

Filing Info

  • Accession Number: 00684197
  • Record Type: Publication
  • Source Agency: British Maritime Technology
  • Files: TRIS
  • Created Date: Aug 14 1995 12:00AM