David Jacks, Martin Stuermer, 18 April 2021

As the recent past has shown, maritime transport costs are subject to wide swings. This column analyses a large new dataset on dry bulk freight rates from 1850 to 2020, when maritime transport costs fell 79%. Turning to the drivers of booms and busts in the dry bulk shipping industry, it finds that shipping demand shocks dominate both fuel price and shipping supply shocks. Shipping demand shocks have increased in importance over time while shipping supply shocks have become less relevant.

Events

CEPR Policy Research