Title: The determinants of the sea freight fee in container shipping - an analysis by route

Authors: Jaqueline Castegnaro Schünke; Silvio Hong Tiing Tai

Addresses: PUCRS, Business School, Rua Professor Ulisses Cabral 1300 301, Porto Alegre – RS, Cep 91330-520, Brazil ' PUCRS, Business School, Rua Professor Ulisses Cabral 1300 301, Porto Alegre – RS, Cep 91330-520, Brazil

Abstract: This paper analyses the effect of supply and demand through an econometric model of price definition in the short term in the five main trades from Asia to the world. The increase in the capacity of ships aiming at gains in scale has generated a global idleness of services. To reduce the effects of service idleness, shipping companies have consolidated into three major alliances, leading the market to an oligopoly status. Understanding how the price definition is done in this self-regulated market provides valuable insights that empower maritime industry professionals to make decisions and contribute to efficient and effective policies and practices in the sector. The results show that specific route-region markets behave in different ways and the incidence of ex-post rates in region-routes with great volume does not allow the offer and demand operate in balance, because of the sector's oligopoly's structure.

Keywords: sea freight; container; oligopoly; supply; demand.

DOI: 10.1504/WRITR.2023.137458

World Review of Intermodal Transportation Research, 2023 Vol.11 No.4, pp.341 - 361

Received: 19 Feb 2023
Accepted: 19 Jul 2023
Published online: 19 Mar 2024 *