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Container freight rates and the role of surcharges

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  • Slack, Brian
  • Gouvernal, Elisabeth

Abstract

This paper demonstrates that the structure of ocean container freight rates has become more complex. A growing number of surcharges are being imposed by the carriers on their customers, surcharges that are not only adding significant extra costs but are highly variable over time. These elements are examined based on a data set of export rates from ports on the Northern European Range that have been compiled from a major global carrier. The paper compares the surcharges to the base rates and discusses some of the implications for shippers who face increasing uncertainty in planning supply chains. Some of the issues for academic research on freight rates is also examined and points to the need to clearly identify what is included in the freight rate data employed. In addition, questions are raised concerning the suitability of many of the variables traditionally used to explain or predict freight rates.

Suggested Citation

  • Slack, Brian & Gouvernal, Elisabeth, 2011. "Container freight rates and the role of surcharges," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1482-1489.
    • Handle: RePEc:eee:jotrge:v:19:y:2011:i:6:p:1482-1489
    DOI: 10.1016/j.jtrangeo.2011.09.003
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Nikola Kutin & Zakaria Moussa & Thomas Vallée, 2018. "Factors behind the Freight Rates in the Liner Shipping Industry," Working Papers halshs-01828633, HAL.
    2. Ziaul Haque Munim & Hans-Joachim Schramm, 0. "Forecasting container freight rates for major trade routes: a comparison of artificial neural networks and conventional models," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 0, pages 1-18.
    3. Wang, Junjin & Liu, Jiaguo, 2019. "Vertical contract selection under chain-to-chain service competition in shipping supply chain," Transport Policy, Elsevier, vol. 81(C), pages 184-196.
    4. Ziaul Haque Munim & Hans-Joachim Schramm, 2017. "Forecasting container shipping freight rates for the Far East – Northern Europe trade lane," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(1), pages 106-125, March.
    5. Liu, Jiaguo & Wang, Junjin, 2019. "Carrier alliance incentive analysis and coordination in a maritime transport chain based on service competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 333-355.
    6. Wang, Hua & Meng, Qiang & Zhang, Xiaoning, 2014. "Game-theoretical models for competition analysis in a new emerging liner container shipping market," Transportation Research Part B: Methodological, Elsevier, vol. 70(C), pages 201-227.
    7. Chen, Kee Kuo & Chiu, Rong-Her & Chang, Ching-Ter, 2017. "Using beta regression to explore the relationship between service attributes and likelihood of customer retention for the container shipping industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 104(C), pages 1-16.
    8. Ziaul Haque Munim & Hans-Joachim Schramm, 2021. "Forecasting container freight rates for major trade routes: a comparison of artificial neural networks and conventional models," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(2), pages 310-327, June.
    9. Guerrero, David & Thill, Jean-Claude, 2021. "Challenging the shipper's location problem in port studies: An analysis of French AOC wine shipments to the US," Journal of Transport Geography, Elsevier, vol. 91(C).
    10. Zhu, Junming & Wang, Jiali, 2021. "The effects of fuel content regulation at ports on regional pollution and shipping industry," Journal of Environmental Economics and Management, Elsevier, vol. 106(C).

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