IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i10p4424-d1654698.html
   My bibliography  Save this article

Quantifying the Influence of Market Concentration on Maritime Freight Rates for Sustainable Transport: A Case Study of the Asia–North America Container Route

Author

Listed:
  • Abdullah Acik

    (Department of Maritime Business Administration, Maritime Faculty, Dokuz Eylul University, Izmir 35390, Türkiye)

  • Can Atacan

    (Maritime Transportation and Management Program, Urla Maritime Vocational School, Ege University, Izmir 35430, Türkiye)

  • Oguzhan Der

    (Department of Marine Engineering, Bandirma Onyedi Eylul University, Balikesir 10200, Türkiye)

  • Ramazan Ozkan Yildiz

    (Deparment of Maritime Transportation and Management Engineering, Bandirma Onyedi Eylul University, Balikesir 10200, Türkiye)

Abstract

The determination of freight rates in liner shipping is influenced by the market dynamics and the strategic decisions of shipping alliances. This study investigates the effect of non-alliance tonnage on freight rates along the Asia–North America West Coast route, employing a quantile regression method. A dataset covering July 2021 to June 2023 was used, with bunker prices and the Dow Jones Index serving as control variables. The results reveal that the non-alliance share has a significant and negative impact on lower quantiles, suggesting that enhanced competition reduces freight rates when the prices are low. In contrast, this effect disappears at higher freight levels. Bunker prices and the stock market index also exhibit varying effects, depending on the quantile, with demand-side variables being more influential during low-freight conditions. These findings suggest that market concentration affects price-setting power, and quantile-based approaches offer deeper insights into these complex relationships than linear models. These insights contribute to the sustainable development of maritime transport by promoting fair competition, improving pricing transparency, and supporting efficient policy interventions in global liner shipping.

Suggested Citation

  • Abdullah Acik & Can Atacan & Oguzhan Der & Ramazan Ozkan Yildiz, 2025. "Quantifying the Influence of Market Concentration on Maritime Freight Rates for Sustainable Transport: A Case Study of the Asia–North America Container Route," Sustainability, MDPI, vol. 17(10), pages 1-21, May.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:10:p:4424-:d:1654698
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/10/4424/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/10/4424/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chen, Yanhui & Zhou, Xiaoyu & Chen, Shun & Mi, Jackson Jinhong, 2024. "LNG freight rate and LNG price, carbon price, geopolitical risk: A dynamic connectedness analysis," Energy, Elsevier, vol. 302(C).
    2. Shi, Wenming & Gong, Yuting & Yin, Jingbo & Nguyen, Son & Liu, Qian, 2022. "Determinants of dynamic dependence between the crude oil and tanker freight markets: A mixed-frequency data sampling copula model," Energy, Elsevier, vol. 254(PB).
    3. Schwert, G William, 2002. "Tests for Unit Roots: A Monte Carlo Investigation," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 5-17, January.
    4. Christos Zikopoulos, 2019. "Determination of freight rates under stochastic demand and freight consolidation savings," International Journal of Production Research, Taylor & Francis Journals, vol. 57(17), pages 5556-5573, September.
    5. D. K. Ryoo & H. A. Thanopoulou, 1999. "Liner alliances in the globalization era: a strategic tool for Asian container carriers," Maritime Policy & Management, Taylor & Francis Journals, vol. 26(4), pages 349-367, October.
    6. Simone Caschili & Francesca Medda & Francesco Parola & Claudio Ferrari, 2014. "An Analysis of Shipping Agreements: The Cooperative Container Network," Networks and Spatial Economics, Springer, vol. 14(3), pages 357-377, December.
    7. Monge, Manuel & Romero Rojo, María Fátima & Gil-Alana, Luis Alberiko, 2023. "The impact of geopolitical risk on the behavior of oil prices and freight rates," Energy, Elsevier, vol. 269(C).
    8. Hercules E. Haralambides, 2019. "Gigantism in container shipping, ports and global logistics: a time-lapse into the future," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 21(1), pages 1-60, March.
    9. Amir H. Alizadeh & Nikos K. Nomikos, 2009. "Shipping Derivatives and Risk Management," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-23580-9, February.
    10. Nikkinen, Jussi & Omran, Mohammed & Sahlstrom, Petri & Aijo, Janne, 2006. "Global stock market reactions to scheduled U.S. macroeconomic news announcements," Global Finance Journal, Elsevier, vol. 17(1), pages 92-104, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Borggreve, Richard & Wilmsmeier, Gordon, 2025. "Container alliance strategies, market concentration and equality: A dynamic time warping clustering approach," Journal of Transport Geography, Elsevier, vol. 126(C).
    2. Jackson Jinhong Mi & Shek Ahmed & Yanhui Chen, 2025. "Exploring volatility transmission in Capesize freight contracts: Insights from energy and commodity markets," PLOS ONE, Public Library of Science, vol. 20(1), pages 1-27, January.
    3. Daniele Crotti & Claudio Ferrari & Alessio Tei, 2020. "Merger waves and alliance stability in container shipping," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(3), pages 446-472, September.
    4. Mohammad Ghorbani & Michele Acciaro & Sandra Transchel & Pierre Cariou, 2022. "Strategic alliances in container shipping: A review of the literature and future research agenda," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(2), pages 439-465, June.
    5. Laurent Fedi & Oliver Faury & Patrick Rigot-Muller & Nicolas Montier, 2022. "COVID-19 as a catalyst of a new container port hierarchy in Mediterranean Sea and Northern Range," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(4), pages 747-777, December.
    6. Chen, Shuiyang & Hao, Siting & Meng, Bin & Zhang, Yajing & Kuang, Haibo, 2025. "Revisiting oil and tanker shipping markets: The role of geopolitical risk in shaping spillover dynamics," Energy, Elsevier, vol. 321(C).
    7. Yunus, Nafeesa, 2023. "Long-run and short-run impact of the U.S. economy on stock, bond and housing markets: An evaluation of U.S. and six major economies," The Quarterly Review of Economics and Finance, Elsevier, vol. 90(C), pages 211-232.
    8. Ghosh, Soumya Kanti & Nath, Hiranya K., 2023. "What determines private and household savings in India?," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 639-651.
    9. Vicente Esteve & Manuel Navarro-Ibáñez & María A. Prats, 2013. "The present value model of US stock prices revisited: long-run evidence with structural breaks, 1871-2010," Working Papers 04/13, Instituto Universitario de Análisis Económico y Social.
    10. Vasudeva N. R. Murthy & Emmanuel Anoruo, 2009. "Are Per Capita Real GDP Series in African Countries Non-stationary or Non-linear? What does Empirical Evidence Reveal?," Economics Bulletin, AccessEcon, vol. 29(4), pages 2492-2504.
    11. M. T. Alguacil & V. Orts, 2003. "Inward Foreign Direct Investment and Imports in Spain," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 19-38.
    12. repec:diw:diwwpp:dp982 is not listed on IDEAS
    13. Jiawu Dai & Liurui Deng & Lan Yang, 2021. "Testing the absorber hypothesis of exchange rates for the overshooting of agricultural prices in China," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(8), pages 327-336.
    14. António Afonso & José Alves & João Jalles & Sofia Monteiro & João Tovar Jalles, 2024. "Energy Price Dynamics in the Face of Uncertainty Shocks and the Role of Exchange Rate Regimes: A Global Cross-Country Analysis," CESifo Working Paper Series 11384, CESifo.
    15. Michel Simioni & Frédéric Gonzales & Patrice Guillotreau & Laurent Le Grel, 2013. "Detecting Asymmetric Price Transmission with Consistent Threshold along the Fish Supply Chain," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 61(1), pages 37-60, March.
    16. Xueni Gou & Jasmine Siu Lee Lam, 2019. "Risk analysis of marine cargoes and major port disruptions," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 21(4), pages 497-523, December.
    17. Pär Österholm, 2005. "The Taylor Rule: A Spurious Regression?," Bulletin of Economic Research, Wiley Blackwell, vol. 57(3), pages 217-247, July.
    18. Chowdhury, Rosen & Cook, Steve & Watson, Duncan, 2023. "Reconsidering the relationship between health and income in the UK," Social Science & Medicine, Elsevier, vol. 332(C).
    19. Mohamed el hédi Arouri & Fredj Jawadi, 2011. "Do on/off time series models reproduce emerging stock market comovements?," Economics Bulletin, AccessEcon, vol. 31(1), pages 960-968.
    20. Christian Bauer & Sebastian Weber, 2016. "The Efficiency of Monetary Policy when Guiding Inflation Expectations," Research Papers in Economics 2016-14, University of Trier, Department of Economics.
    21. Jan Hoffmann & Naima Saeed & Sigbjørn Sødal, 2020. "Liner shipping bilateral connectivity and its impact on South Africa’s bilateral trade flows," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(3), pages 473-499, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:10:p:4424-:d:1654698. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.