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Transshipment Hubs, Trade, and Supply Chains

Author

Listed:
  • Anh Do
  • Sharat Ganapati
  • Woan Foong Wong
  • Oren Ziv

Abstract

The majority of global trade moves by sea through hub-and-spoke shipping networks. We investigate the returns to being a hub country by analyzing how transshipment activity shapes trade and supply chains. We show that most US imports especially from smaller origin countries are transshipped via key hubs, and transshipment is positively correlated with the hubs product-level trade. Leveraging the indirect shipping network structure to construct an instrument, we find that transshipment increases hubs imports from origins for which they facilitate trade and exports of downstream goods, highlighting their central role in shaping modern global trade and supply chain dynamics.

Suggested Citation

  • Anh Do & Sharat Ganapati & Woan Foong Wong & Oren Ziv, 2025. "Transshipment Hubs, Trade, and Supply Chains," CESifo Working Paper Series 12187, CESifo.
    • Handle: RePEc:ces:ceswps:_12187
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    File URL: https://www.ifo.de/DocDL/cesifo1_wp12187.pdf
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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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