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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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    References listed on IDEAS

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    1. Sharat Ganapati & Woan Foong Wong, 2023. "How Far Goods Travel: Global Transport and Supply Chains from 1965–2020," Journal of Economic Perspectives, American Economic Association, vol. 37(3), pages 3-30, Summer.
    2. Ahmad, Zofia & Chicoine, Luke, 2021. "Silk Roads to Riches: Persistence Along an Ancient Trade Network," MPRA Paper 105146, University Library of Munich, Germany.
    3. Ducruet, César & Juhász, Réka & Nagy, Dávid Krisztián & Steinwender, Claudia, 2024. "All aboard: The effects of port development," Journal of International Economics, Elsevier, vol. 151(C).
    4. Edward Ludwig Glaeser, 2005. "Urban colossus: why is New York America's largest city?," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 7-24.
    5. Woan Foong Wong, 2022. "The Round Trip Effect: Endogenous Transport Costs and International Trade," American Economic Journal: Applied Economics, American Economic Association, vol. 14(4), pages 127-166, October.
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    Cited by:

    1. Sonali Chowdhry & Inga Heiland & Hendrik Mahlkow, 2026. "Quantitative Trade with Ships," Discussion Papers of DIW Berlin 2158, DIW Berlin, German Institute for Economic Research.

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    Keywords

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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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