IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v25y2009i1p56-66.html
   My bibliography  Save this article

The relevance of international transport costs on food prices: Endogenous and exogenous effects

Author

Listed:
  • Wilmsmeier, Gordon
  • Sanchez, Ricardo J.

Abstract

The paper addresses the problem of transport costs and their influence on food prices for South American imports. While transport does not seem to be in the focus of existing analyses, its impact on food prices might be underestimated and even closely linked to the development of commonly mentioned drivers of food prices. Since transport price formation is a function of demand and supply, drivers of food prices are also expected to impact on transport prices. The authors argue that a number of relevant factors that drive transport costs - and in consequence food prices - can be influenced by policy makers. Based on empirical analysis, the authors explain the functioning of the determinants of transport costs in the segment of international shipping, trying to describe their exogenous and endogenous components. These results are discussed in reference to policy development in the region.

Suggested Citation

  • Wilmsmeier, Gordon & Sanchez, Ricardo J., 2009. "The relevance of international transport costs on food prices: Endogenous and exogenous effects," Research in Transportation Economics, Elsevier, vol. 25(1), pages 56-66.
    • Handle: RePEc:eee:retrec:v:25:y:2009:i:1:p:56-66
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0739-8859(09)00036-5
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ricardo J Sánchez & Jan Hoffmann & Alejandro Micco & Georgina V Pizzolitto & Martín Sgut & Gordon Wilmsmeier, 2003. "Port Efficiency and International Trade: Port Efficiency as a Determinant of Maritime Transport Costs," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 5(2), pages 199-218, June.
    2. Jan Hoffmann, 2001. "Latin American Ports: Results and Determinants of Private Sector Participation," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 3(2), pages 221-241, June.
    3. Peter de Langen, 2004. "Governance in Seaport Clusters," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 6(2), pages 141-156, June.
    4. Clark, Ximena & Dollar, David & Micco, Alejandro, 2004. "Port efficiency, maritime transport costs, and bilateral trade," Journal of Development Economics, Elsevier, vol. 75(2), pages 417-450, December.
    5. Gordon Wilmsmeier & Jan Hoffmann, 2008. "Liner Shipping Connectivity and Port Infrastructure as Determinants of Freight Rates in the Caribbean," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 10(1-2), pages 130-151, March.
    6. Beatrice Tovar & Sergio Jara-Diaz & Lourdes Trujillo, 2003. "Production and cost functions and their application to the port sector : a literature survey," Policy Research Working Paper Series 3123, The World Bank.
    7. Kevin Cullinane & Dong-Wook Song, 2002. "Port privatization policy and practice," Transport Reviews, Taylor & Francis Journals, vol. 22(1), pages 55-75, January.
    8. Gordon Wilmsmeier & Inmaculada Martínez-Zarzoso, 2009. "Determinants of maritime transport costs -- a panel data analysis for Latin American trade," Transportation Planning and Technology, Taylor & Francis Journals, vol. 33(1), pages 105-121, October.
    9. Wilmsmeier, Gordon & Hoffmann, Jan & Sanchez, Ricardo J., 2006. "The Impact of Port Characteristics on International Maritime Transport Costs," Research in Transportation Economics, Elsevier, vol. 16(1), pages 117-140, January.
    10. Joseph F. Francois & Ian Wooton, 2001. "Trade in International Transport Services: The Role of Competition," Review of International Economics, Wiley Blackwell, vol. 9(2), pages 249-261, May.
    11. Bichou, K. & Gray, R., 2005. "A critical review of conventional terminology for classifying seaports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(1), pages 75-92, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mesquita Moreira, Mauricio & Giordano, Paolo & Estevadeordal, Antoni & Serebrisky, Tomás & Schwartz, Jordan & Sánchez, Ricardo & Stokenberga, Aiga, 2010. "Nota de Discusión de Politícas: Cómo Reducir Las Brechas de Integración (Escenarios y Recomendaciones de Políticas para Promover la Infraestructura Física y Reducir los Costes del Comercio Intrarregio," IDB Publications (Working Papers) 2559, Inter-American Development Bank.
    2. Pérez-Mesa, Juan Carlos & García-Barranco, M. Carmen & Piedra-Muñoz, Laura & Galdeano-Gómez, Emilio, 2019. "Transport as a limiting factor for the growth of Spanish agri-food exports," Research in Transportation Economics, Elsevier, vol. 78(C).
    3. Zhao, Qianyu & Xu, Hang & Wall, Ronald S & Stavropoulos, Spyridon, 2017. "Building a bridge between port and city: Improving the urban competitiveness of port cities," Journal of Transport Geography, Elsevier, vol. 59(C), pages 120-133.
    4. Sun, Xiaolei & Liu, Chang & Wang, Jun & Li, Jianping, 2020. "Assessing the extreme risk spillovers of international commodities on maritime markets: A GARCH-Copula-CoVaR approach," International Review of Financial Analysis, Elsevier, vol. 68(C).
    5. Laura Márquez-Ramos & Inmaculada Martínez-Zarzoso & Eva Pérez-García & Gordon Wilmsmeier, 2011. "“Special Issue on Latin-American Research” Maritime Networks, Services Structure and Maritime Trade," Networks and Spatial Economics, Springer, vol. 11(3), pages 555-576, September.
    6. Ankur Chauhan & Harpreet Kaur & Sachin Yadav & Suresh Kumar Jakhar, 2020. "A hybrid model for investigating and selecting a sustainable supply chain for agri-produce in India," Annals of Operations Research, Springer, vol. 290(1), pages 621-642, July.
    7. Seyedvahid Vakili & Fabio Ballini & Alessandro Schönborn & Anastasia Christodoulou & Dimitrios Dalaklis & Aykut I. Ölçer, 2023. "Assessing the macroeconomic and social impacts of slow steaming in shipping: a literature review on small island developing states and least developed countries," Journal of Shipping and Trade, Springer, vol. 8(1), pages 1-25, December.
    8. Pérez-Mesa, Juan Carlos & García-Barranco, M & Piedra-Muñoz, Laura & Galdeano-Gómez, Emilio, 2019. "Transport as a limiting factor for the growth of Spanish agri-food exports," MPRA Paper 119855, University Library of Munich, Germany.
    9. Lim, Kian Guan, 2022. "Endogeneity of commodity price in freight cost models," Journal of Commodity Markets, Elsevier, vol. 26(C).
    10. Wilmsmeier Gordon & Sánchez Ricardo J., 2010. "Evolution of shipping networks: Current challenges in emerging markets," ZFW – Advances in Economic Geography, De Gruyter, vol. 54(1), pages 180-193, October.
    11. Mauricio Mesquita Moreira & Paolo Giordano & Antoni Estevadeordal & Tomás Serebrisky & Jordan Schwartz & Ricardo Sánchez & Aiga Stokenberga, 2010. "Nota de Discusión de Politícas: Cómo Reducir Las Brechas de Integración (Escenarios y Recomendaciones de Políticas para Promover la Infraestructura Física y Reducir los Costes del Comercio Intrarregio," IDB Publications (Working Papers) 9338, Inter-American Development Bank.
    12. Hasan Demir & Hande Demir & Biljana Lončar & Lato Pezo & Ivan Brandić & Neven Voća & Fatma Yilmaz, 2023. "Optimization of Caper Drying Using Response Surface Methodology and Artificial Neural Networks for Energy Efficiency Characteristics," Energies, MDPI, vol. 16(4), pages 1-14, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wilmsmeier, Gordon & Hoffmann, Jan & Sanchez, Ricardo J., 2006. "The Impact of Port Characteristics on International Maritime Transport Costs," Research in Transportation Economics, Elsevier, vol. 16(1), pages 117-140, January.
    2. De Oliveira, Gabriel Figueiredo, 2014. "Determinants of European freight rates: The role of market power and trade imbalance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 62(C), pages 23-33.
    3. Jordan Schwartz & José Luis Guasch & Gordon Wilmsmeier, 2009. "Logistics, Transport and Food Prices in LAC: Policy Guidance for Improving Efficiency and Reducing Costs," IDB Publications (Working Papers) 9324, Inter-American Development Bank.
    4. Patricia Sourdin & Richard Pomfret, 2012. "Trade Facilitation," Books, Edward Elgar Publishing, number 14596.
    5. Borchert, Ingo & Mattoo, Aaditya, 2016. "The trade reducing effects of restrictions on liner shippingAuthor-Name: Bertho, Fabien," Journal of Comparative Economics, Elsevier, vol. 44(2), pages 231-242.
    6. Pierre CARIOU & Gabriel FIGUEIREDO DE OLIVEIRA, 2015. "Les Déterminants De L'Efficience Portuaire : Une Analyse Des Ports À Conteneurs Méditerranéens," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 41, pages 83-99.
    7. Laura Márquez-Ramos & Inmaculada Martínez-Zarzoso & Eva Pérez-García & Gordon Wilmsmeier, 2011. "“Special Issue on Latin-American Research” Maritime Networks, Services Structure and Maritime Trade," Networks and Spatial Economics, Springer, vol. 11(3), pages 555-576, September.
    8. Jimenez, Manuel, 2020. "Trade Costs and Mark-Ups in Maritime Shipping," Conference papers 333182, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Qiao Lei & Chris Bachmann, 2020. "Assessing the role of port efficiency as a determinant of maritime transport costs: evidence from Canada," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(4), pages 562-584, December.
    10. Bichou, Khalid, 2006. "Chapter 24 Review of Port Performance Approaches and a Supply Chain Framework to Port Performance Benchmarking," Research in Transportation Economics, Elsevier, vol. 17(1), pages 567-598, January.
    11. Gordon Wilmsmeier & Inmaculada Martínez-Zarzoso, 2009. "Determinants of maritime transport costs -- a panel data analysis for Latin American trade," Transportation Planning and Technology, Taylor & Francis Journals, vol. 33(1), pages 105-121, October.
    12. Jan Hoffmann & Naima Saeed & Sigbjørn Sødal, 2020. "Liner shipping bilateral connectivity and its impact on South Africa’s bilateral trade flows," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(3), pages 473-499, September.
    13. Hummels, David & Lugovskyy, Volodymyr & Skiba, Alexandre, 2009. "The trade reducing effects of market power in international shipping," Journal of Development Economics, Elsevier, vol. 89(1), pages 84-97, May.
    14. Courage Mlambo, 2021. "The Impact of Port Performance on Trade: The Case of Selected African States," Economies, MDPI, vol. 9(4), pages 1-18, September.
    15. Marco FUGAZZA & Jan HOFFMANN & Rado RAZAFINOMBANA, 2015. "Building A Dataset For Bilateral Maritime Connectivity," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 41, pages 101-124.
    16. Abisai Konstantinus & Mark Zuidgeest & Anastasia Christodoulou & Zeeshan Raza & Johan Woxenius, 2019. "Barriers and Enablers for Short Sea Shipping in the Southern African Development Community," Sustainability, MDPI, vol. 11(6), pages 1-16, March.
    17. Jan Hoffmann & Naima Saeed & Sigbjørn Sødal, 0. "Liner shipping bilateral connectivity and its impact on South Africa’s bilateral trade flows," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 0, pages 1-27.
    18. Olaf Jonkeren & Erhan Demirel & Jos van Ommeren & Piet Rietveld, 2011. "Endogenous transport prices and trade imbalances," Journal of Economic Geography, Oxford University Press, vol. 11(3), pages 509-527, May.
    19. Thomas Orliac, 2012. "The economics of trade facilitation [L'économie de la facilitation des échanges]," SciencePo Working papers Main tel-03681980, HAL.
    20. Bianka Dettmer & Andreas Freytag & Peter Draper, 2013. "Check-in, departure and arrival times: Air cargo in Southern Africa?," Jena Economics Research Papers 2013-018, Friedrich-Schiller-University Jena.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:retrec:v:25:y:2009:i:1:p:56-66. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.