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

Gabriel Figueiredo De Oliveira

Transportation Research Part E: Logistics and Transportation Review, 2014, vol. 62, issue C, 23-33

Abstract: This paper investigates the determinants of freight rates between six European countries and 47 partners. We 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, we 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.

Keywords: Trade imbalance; Freight rates; Surcharges; Connectivity (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:62:y:2014:i:c:p:23-33

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DOI: 10.1016/j.tre.2013.12.001

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