Home Economy Explosions and bankruptcies in shipping costs and their dynamics: Economics

Explosions and bankruptcies in shipping costs and their dynamics: Economics


As the recent past has shown, the cost of shipping has large variation. This column analyzes a new large data set on dry bulk freight rates between 1850 and 2020, when shipping costs fell 79%. Turning to the cause of the boom and bust in the dry bulk shipping industry, it finds that shocks in shipping demand dominate both fuel price and shipping supply shocks. Transport demand shocks increase in importance over time while transport supply shocks have become less relevant.

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