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Maritime Transport Costs and Trade

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Most comprehensive dataset on maritime transport costs known today ... A doubling of transport costs ($/T) is associated with a 33-36 % decline in ... – PowerPoint PPT presentation

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Title: Maritime Transport Costs and Trade


1
Maritime Transport Costs and Trade
  • jane.korinek_at_oecd.org
  •  

2
Why?
  • As tariffs and excess costs in production have
    fallen, other costs such as transport have become
    relatively more important
  • Gravity model workhorse of trade flow models,
    uses distance as a proxy for trade costs.

3
New dataset on maritime transport costs
  • Most comprehensive dataset on maritime transport
    costs known today
  • Different data sources for different segments of
    maritime transport markets (containers, bulk
    industrial raw materials, bulk agricultural raw
    materials)
  • Permits calculation of
  • transport cost per tonne of merchandise
  • ad valorem equivalent

4
Why not more?
  • Customs data have to be collected by mode of
    transport and by CIF and FOB
  • For some countries, these data are not collected
  • For others, we have not had access to them
  • In other cases, we have incomplete information
    about the availability of these data

5
Shipping to and from developing countries is more
expensive than OECD
6
Maritime transport costs for grains in some NFIDCs

7
Impact of MTC on trade in agriculture
  • A doubling of transport costs (/T) is associated
    with a 33-36 decline in agricultural trade
    overall
  • Distance is still significant
  • The impact of transport costs on trade is
    increasing over time by 1.5 percentage points
    per year

8
Context Project on Trade Costs
  • Future work to measure and analyse impact of
    other trade costs
  • Inland transport
  • Logistics and port-side services
  • Exchange rate volatility
  • Importer/exporter margins
  • Distribution issues

9
  • jane.korinek_at_oecd.org
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