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New evidence on the fluctuations in ocean freight rates in the 1850s

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  • Klovland, Jan Tore

Abstract

Newly constructed global indices of ocean freight rates in the 1850s show large cyclical fluctuations in these years. A new type of freight rate index, referred to as a repeat sailings index, is presented, which is similar to a type of index frequently applied to house prices. An econometric model of the freight rate market is estimated on monthly data from the 1850s. It is found that harvest failures, business cycles, the supply of tonnage and the Crimean War all significantly affected freight rates in this period. The Crimean War may have accounted for about a quarter of the surge in freight rates in the years prior to the outbreak of the War; once the War broke out in March 1854, however, it was of less importance.

Suggested Citation

  • Klovland, Jan Tore, 2009. "New evidence on the fluctuations in ocean freight rates in the 1850s," Explorations in Economic History, Elsevier, vol. 46(2), pages 266-284, April.
    • Handle: RePEc:eee:exehis:v:46:y:2009:i:2:p:266-284
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    Cited by:

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    2. Devaney, Steven, 2010. "Trends in office rents in the City of London: 1867-1959," Explorations in Economic History, Elsevier, vol. 47(2), pages 198-212, April.
    3. David Greasley & Les Oxley, 2010. "Cliometrics And Time Series Econometrics: Some Theory And Applications," Journal of Economic Surveys, Wiley Blackwell, vol. 24(5), pages 970-1042, December.
    4. David S. Jacks & Martin Stuermer, 2021. "Dry bulk shipping and the evolution of maritime transport costs, 1850–2020," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 61(2), pages 204-227, July.
    5. Ola Honningdal Grytten, 2012. "Financial crises and monetary expansion," Working Paper 2011/21, Norges Bank.
    6. Absell, Christopher David & Tena Junguito, Antonio, 2017. "The Reconstruction of Brazil's Foreign Trade Series, 1821-1913," IFCS - Working Papers in Economic History.WH 24511, Universidad Carlos III de Madrid. Instituto Figuerola.

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    Keywords

    Ocean freight rate index The Crimean War Freight market model;

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