A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Do shipping alliances affect freight rates? Evidence from global satellite ship data
https://orcid.org/0000-0001-7787-2024
https://orcid.org/0000-0002-5743-0509
https://orcid.org/0000-0002-9239-0899
Abstract Shipping alliances (SAs) can facilitate their members’ coordination on price and capacity decisions. Although this helps reduce the oversupply of capacity and cutthroat competition during market downturns, the possible freight rate increase due to potential collusion among member shipping lines is another concern. This study aims to empirically investigate the impacts of SAs on container freight rates on nine major shipping corridors for the period from 2015 to 2020. To measure market concentration, data from a satellite-based Automatic Information System (AIS) is used to identify liner shipping companies' services in each market. We propose to use the alliance-level Herfindahl-Hirschman Index (HHI) and Concentration Ratio Index (CR) to measure market concentration. Then we used the simulated market concentration measures as the instrumental variable to address the endogeneity issue between freight rates and alliances’ market share. The main finding is that both alliance-level HHI and CR are negatively associated with freight rates, implying that SAs may help reduce prices. This finding provides new insights for antitrust authorities when investigating alliance applications in the liner shipping sector.
Do shipping alliances affect freight rates? Evidence from global satellite ship data
https://orcid.org/0000-0001-7787-2024
https://orcid.org/0000-0002-5743-0509
https://orcid.org/0000-0002-9239-0899
Abstract Shipping alliances (SAs) can facilitate their members’ coordination on price and capacity decisions. Although this helps reduce the oversupply of capacity and cutthroat competition during market downturns, the possible freight rate increase due to potential collusion among member shipping lines is another concern. This study aims to empirically investigate the impacts of SAs on container freight rates on nine major shipping corridors for the period from 2015 to 2020. To measure market concentration, data from a satellite-based Automatic Information System (AIS) is used to identify liner shipping companies' services in each market. We propose to use the alliance-level Herfindahl-Hirschman Index (HHI) and Concentration Ratio Index (CR) to measure market concentration. Then we used the simulated market concentration measures as the instrumental variable to address the endogeneity issue between freight rates and alliances’ market share. The main finding is that both alliance-level HHI and CR are negatively associated with freight rates, implying that SAs may help reduce prices. This finding provides new insights for antitrust authorities when investigating alliance applications in the liner shipping sector.
Do shipping alliances affect freight rates? Evidence from global satellite ship data
https://orcid.org/0000-0001-7787-2024
https://orcid.org/0000-0002-5743-0509
https://orcid.org/0000-0002-9239-0899
Abstract Shipping alliances (SAs) can facilitate their members’ coordination on price and capacity decisions. Although this helps reduce the oversupply of capacity and cutthroat competition during market downturns, the possible freight rate increase due to potential collusion among member shipping lines is another concern. This study aims to empirically investigate the impacts of SAs on container freight rates on nine major shipping corridors for the period from 2015 to 2020. To measure market concentration, data from a satellite-based Automatic Information System (AIS) is used to identify liner shipping companies' services in each market. We propose to use the alliance-level Herfindahl-Hirschman Index (HHI) and Concentration Ratio Index (CR) to measure market concentration. Then we used the simulated market concentration measures as the instrumental variable to address the endogeneity issue between freight rates and alliances’ market share. The main finding is that both alliance-level HHI and CR are negatively associated with freight rates, implying that SAs may help reduce prices. This finding provides new insights for antitrust authorities when investigating alliance applications in the liner shipping sector.
Do shipping alliances affect freight rates? Evidence from global satellite ship data
Li, Lu (author) / Wan, Yulai (author) / Yang, Dong (author)
2024-01-01
Article (Journal)
Electronic Resource
English
Global Alliances in Container Shipping and Their Potential Effects on Ports
| British Library Online Contents | 1999
Microeconomic determinants of dry bulk shipping freight rates and contract times
| Online Contents | 2010
Microeconomic determinants of dry bulk shipping freight rates and contract times
| Online Contents | 2010
Freight Integration in Liner Shipping: A Strategy Serving Global Production Networks
| Online Contents | 2006