Price discrimination between freight forwarders and carriers: Evidence from the container shipping industry

Pierre Cariou, Haiying Jia and François-Charles Wolff

Transport Policy, 2025, vol. 170, issue C, 1-11

Abstract: Freight forwarders often serve as intermediaries in the container shipping industry, facilitating reservations and negotiating container freight rates between shippers and carriers. This study empirically investigates whether these freight forwarders experience price discrimination compared to shippers who engage in direct price negotiations with carriers. The analysis uses a unique dataset consisting of approximately 1.5 million real-world transactions from 2018 to 2023. The results show that, on average, freight forwarders incur a 5 % premium for short-term contracts but receive a 3 % discount for long-term contracts. Moreover, the premium was more pronounced during the COVID-19 pandemic, peaking at 18.1 % in 2021–2022. This finding is corroborated by a robust estimation that matches contracts negotiated by freight forwarders with comparable contracts negotiated directly by shippers.

Keywords: Container shipping; Freight forwarder; Freight; Price discrimination; TEU (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:trapol:v:170:y:2025:i:c:p:1-11

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DOI: 10.1016/j.tranpol.2025.05.005

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