Chapter 4: Supply, Demand and Freight Rates
Course overview — this course 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 … 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
