Determinants of maritime transport costs – a panel data analysis for Latin American trade

Wilmsmeier, Gordon and Martínez-Zarzoso, Inmaculada (2010) Determinants of maritime transport costs – a panel data analysis for Latin American trade. Transportation Planning and Technology, 33 (1). pp. 105-121. ISSN 0308-1060

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This paper analyses the determinants of maritime transport costs for intra-Latin American trade over a period of 6 years (1999–2004). The data refer to yearly disaggregated (five-digit level Standard International Classification) containerised maritime trade flows on 277 trade routes. With this data-set, a transport costs equation is estimated using linear regression analysis in a panel data framework. The first contribution to the literature is to exploit the greater variability present in the data and to control for unobservable heterogeneous effects. The second is to investigate the role of distance as a determinant of international maritime transport costs in comparison to the location within the liner services network and the potential impact of being peripheral in the liner shipping network. Finally, the work analyses influence of open registries on the variability of maritime transport costs. To the authors’ knowledge, this has not been done previously. Three groups of explanatory variables are considered. Firstly, time variant variables: use of open registries and trade imbalance. Secondly, variables related to liner shipping network structures: number of liner services; shipping opportunities; deployed ships and deployed TEUs. Finally, product-related variables such as volume of shipment, value of product and special characteristics of the cargo (i.e. refrigerated cargo). The results allow the quantification of the effects of explanatory variables on international maritime transport costs and to compare the obtained elasticities with previous cross-section analyses. In particular, estimating the impact of the use of open registries on maritime transport cost is a new contribution in this field that could provide policy-makers with valuable information to be used in the implementation of economic policies.

Item Type: Article
Print ISSN: 0308-1060
Additional Information: Paper presented at 41st Annual UTSG Conference held at University College, London on the 5th-7th Jan. 2009
Uncontrolled Keywords: International transport costs; Panel data analysis; Cconnectivity; Flag of convenience; Latin America
University Divisions/Research Centres: Edinburgh Napier University, Transport Research Institute
Dewey Decimal Subjects: 300 Social sciences > 380 Commerce, communications & transportation > 387 Water, air & space transportation
Library of Congress Subjects: H Social Sciences > HE Transportation and Communications
Item ID: 5096
Depositing User: Mr David Main
Date Deposited: 13 Mar 2012 15:00
Last Modified: 19 Mar 2014 11:28

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