Lecture 4: Supply, Demand and Freight Rates

Lecture 4 takes a more detailed look at the economic model of the shipping market which underlies the cyclical nature of the business.  The model consists of three components: supply, demand … More

Unit 4.1: The shipping market model overview

In this section we take an overview of the shipping market model

Unit 4.2: Modelling Sea Transport Demand

Ship demand is a particular issue for the shipping market because it can change much more quickly than … More

Unit 4.3: Modelling Sea Transport Supply

The problem with sea transport supply is that adjustments take a long time.  New ships take 2 or 3 years to … More

Unit 4.4: The Freight Rate Mechanism

In this unit we get to the heart of the model – the freight market adjustment mechanism.  This is well … More

Unit 4.5: Why Shipping Cycles are Irregular

Although periodic cyclical models (e.g.  the type proposed by Tinbergen) are theoretically attractive, the … More


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