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A static theory of dry bulk freight rates by route

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  • Risto Laulajainen

Abstract

Trade flows subjected to a major upheaval are followed by a reorganized freight rate structure. Rate functions developed under the old regime are unlikely to perform well because they are implicitly based on the circulation of tonnage which no longer applies, for example fronthauls and backhauls. A gravity-type static model capable of estimating route-specific rate levels from trade matrix data is developed and tested with historical data. The rates are in index form which makes it possible to integrate data from several ship size segments (large capesize, small capesize, panamax, handysize) and years.

Suggested Citation

  • Risto Laulajainen, 2006. "A static theory of dry bulk freight rates by route," Maritime Policy & Management, Taylor & Francis Journals, vol. 33(5), pages 447-461.
  • Handle: RePEc:taf:marpmg:v:33:y:2006:i:5:p:447-461
    DOI: 10.1080/03088830601020570
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    Cited by:

    1. Prochazka, Vit & Adland, Roar & Wallace, Stein W., 2019. "The value of foresight in the drybulk freight market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 129(C), pages 232-245.
    2. Dinwoodie, John & Landamore, Melanie & Rigot-Muller, Patrick, 2014. "Dry bulk shipping flows to 2050: Delphi perceptions of early career specialists," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 64-75.

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