Developments in maritime trade (original) (raw)

Dynamics in the dry bulk market: Economic activity, trade flows, and safety in shipping

Recent dynamics in iron ore markets are driven by rapid changes in economic activities that affect commodity markets, trade flows, and shipping activities. Time series models for the relation between these variables in Southeast Asia and the Australasian region are supplemented with models for safety and pollution risk. Steel production in China, Japan, and South Korea is related to iron ore exports and vessel activity in Australia, with an estimated time lag of about two months. The Purchasing Manager Index, which is popular among traders as indicator of economic activity, is found to have predictive power both for steel production and for iron ore exports. The growth in economic activity and vessel movements is associated with significantly higher risks for ship accidents and pollution.

The Influence of Transportation Rates on Grain Prices: A Dynamic Analysis

2006

An efficient and reliable transportation system is important to the marketing of U.S. grain since transport costs often account for a significant portion of the grain price in destination markets. Changes in a mode's transportation rate may divert the grain flow and ultimately influence prices in origin and destination markets. The objective of this paper is to explore the impact of transport rates on grain prices using a multi-destination, inter-temporal approach, which can better capture the dynamic influence of transportation rates on grain prices. Corn prices at two major port areas and selected domestic markets are included in the analyses as are barge rates on the Upper Mississippi and Illinois Rivers, rail rates linking selected production regions and domestic markets, and ocean rates linking the export ports to foreign markets. A multivariate time-series analysis and graphical models are employed to analyze monthly prices and transport rate series extending from January ...

Interaction between commodity prices and freight rates: Content analysis of the dry bulk market reports

İzmir Journal of Social Sciences, 2021

Most of the commodities used as raw materials for final products in the world economy are transported by sea by dry bulk cargo ships. Due to the derived demand structure, the demand for commodities directly affects the demand for shipping. One of the biggest indicators of the demand for commodities is their prices. The purpose of this study is to investigate how the relationship between commodity price and freight rate, which has been examined and verified by many studies in the empirical literature, is interpreted in the maritime industry. In this direction, the industry reports published by Fearnleys, one of the leading institutions of the maritime industry, are analyzed using interpretive content analysis method. Investigated market reports cover the period 23 February 2005 to 13 November 2019 and consist of a 752-week market summary report. The sections related to the dry bulk market and summarizing the Capesize, Panamax and Handymax markets are examined in the reports. According to the results, the relationship between the commodity price and freight rates in the sector reports is interpreted with the assumption that the commodity price reflects the demand for itself. In addition, the cargo shift between ship types arises according to the freight levels. Therefore, information and volatilities from commodity prices affect not only the freight of the specialized ship, but also the other freight markets.

Factors influencing the formation of freight rates on maritime shipping markets

Pomorstvo, 2015

Maritime shipping has a significant role in maritime policies and overall economic development of every maritime country. The fact that 2/3 of the total world trade of goods are done by maritime routes and that the sea is the least expensive trade route is enough to see the importance of its existence for every maritime country. The whole world and overall world trade, in maritime and other sectors, are defined by the relationship between supply and demand and prices on the market. Precisely for this reason it is important to well understand these relations and their mutual impacts. Therefore, in order to present the changeable state of shipping markets, in this paper we will use the supply and demand model which is connected to the freight rate i.e. the price of maritime transport service, which through its influence on the shipper and the shipowner balances the supply and demand. The aim of this paper is to point out the factors which influence the maritime shipping markets. In th...