01366620

Component

The objective of this paper is to explore how container freight rates vary globally and regionally and over time. This is achieved in part by considering freight rates as a measure of economic distance. Unlike absolute distance which is invariant between locations, economic distance is a relative measure, but like absolute distance it can be mapped. In this paper the geographical distribution for a set of rates from markets around the world to the ports of the Northern Range of Europe is mapped. This cartographic representation provides a unique opportunity to explore the spatial arrangement of markets while providing a number of insights into the spatial structure of rates during a period of considerable change. The paper goes on discuss this spatial structure in the context of three issues that have been raised in the literature: the relationships between rates and physical distance; the role of market conditions and rates; and, the relationships between rates and economic development. From this examination, questions are raised involving long held assumptions about distance and rates, competition and pricing, and rates and economic development.

This paper was sponsored by TRB committee AT020 International Trade and Transportation

01362476

12-0786

English

15p

2012

Transportation Research Board 91st Annual Meeting

Digital/other

Figures; References; Tables

Container handling; Economic development; Freight transportation; International trade; Rates; Shipping; Trip length

Global markets

Economics; Finance; Freight Transportation; Marine Transportation; I10: Economics and Administration

Transportation Research Board Annual Meeting 2012 Paper #12-0786

PRP, TRIS, TRB

Feb 8 2012 4:57PM