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New evidence on the fluctuations in ocean freight rates in the 1850s

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  • Klovland, Jan Tore

Abstract

Newly constructed global indices of ocean freight rates in the 1850s show large cyclical fluctuations in these years. A new type of freight rate index, referred to as a repeat sailings index, is presented, which is similar to a type of index frequently applied to house prices. An econometric model of the freight rate market is estimated on monthly data from the 1850s. It is found that harvest failures, business cycles, the supply of tonnage and the Crimean War all significantly affected freight rates in this period. The Crimean War may have accounted for about a quarter of the surge in freight rates in the years prior to the outbreak of the War; once the War broke out in March 1854, however, it was of less importance.

Suggested Citation

  • Klovland, Jan Tore, 2009. "New evidence on the fluctuations in ocean freight rates in the 1850s," Explorations in Economic History, Elsevier, vol. 46(2), pages 266-284, April.
    • Handle: RePEc:eee:exehis:v:46:y:2009:i:2:p:266-284
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    References listed on IDEAS

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    Cited by:

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    2. David Greasley & Les Oxley, 2010. "Cliometrics And Time Series Econometrics: Some Theory And Applications," Journal of Economic Surveys, Wiley Blackwell, vol. 24(5), pages 970-1042, December.
    3. Absell, Christopher David & Tena-Junguito, Antonio, 2018. "The Reconstruction Of Brazil’S Foreign Trade Series, 1821-1913," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 36(1), pages 87-115, March.
    4. Absell, Christopher David & Incerpi, Andrea, 2022. "Opening the black box of distance: evidence from Italy, 1862-1938," IFCS - Working Papers in Economic History.WH 36226, Universidad Carlos III de Madrid. Instituto Figuerola.
    5. Ola Honningdal Grytten, 2012. "Financial crises and monetary expansion," Working Paper 2011/21, Norges Bank.
    6. Devaney, Steven, 2010. "Trends in office rents in the City of London: 1867-1959," Explorations in Economic History, Elsevier, vol. 47(2), pages 198-212, April.

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    Keywords

    Ocean freight rate index The Crimean War Freight market model;

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