IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v48y2012i1p258-265.html
   My bibliography  Save this article

The economic importance of the Straits of Malacca and Singapore: An extreme-scenario analysis

Author

Listed:
  • Qu, Xiaobo
  • Meng, Qiang

Abstract

This paper proposes a decision tree model to estimate the loss to global economy on the hypothesis of an extreme scenario of blockade of the Straits of Malacca and Singapore. The insurance surcharges, inventory costs and the time values of cargoes, and Time Charter Equivalent rate are used to estimate the psychological loss, the loss to industries, and the loss to carriers, respectively. Interestingly, there is a pseudo-paradoxical phenomenon with respect to the loss to carriers. An illustrative example is also provided to explain the “Malacca Paradox”.

Suggested Citation

  • Qu, Xiaobo & Meng, Qiang, 2012. "The economic importance of the Straits of Malacca and Singapore: An extreme-scenario analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(1), pages 258-265.
    • Handle: RePEc:eee:transe:v:48:y:2012:i:1:p:258-265
    DOI: 10.1016/j.tre.2011.08.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554511001104
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2011.08.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Kenneth E. Train & Clifford Winston, 2007. "Vehicle Choice Behavior And The Declining Market Share Of U.S. Automakers," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(4), pages 1469-1496, November.
    2. Wang, Xinchang & Meng, Qiang, 2011. "The impact of landbridge on the market shares of Asian ports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(2), pages 190-203, March.
    3. Potter, Andrew & Lalwani, Chandra, 2008. "Investigating the impact of demand amplification on freight transport," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(5), pages 835-846, September.
    4. Shintani, Koichi & Konings, Rob & Imai, Akio, 2010. "The impact of foldable containers on container fleet management costs in hinterland transport," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 750-763, September.
    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. Marasco, Addolorata & Romano, Alessandro, 2018. "Inter-port interactions in the Le Havre-Hamburg range: A scenario analysis using a nonautonomous Lotka Volterra model," Journal of Transport Geography, Elsevier, vol. 69(C), pages 207-220.
    2. Zhang, Liye & Meng, Qiang & Fang Fwa, Tien, 2019. "Big AIS data based spatial-temporal analyses of ship traffic in Singapore port waters," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 129(C), pages 287-304.
    3. Wang, Hua & Zhang, Yiru & Meng, Qiang, 2018. "How will the opening of the Northern Sea Route influence the Suez Canal Route? An empirical analysis with discrete choice models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 107(C), pages 75-89.
    4. Wang, Shuang & Wallace, Stein W. & Lu, Jing & Gu, Yewen, 2020. "Handling financial risks in crude oil imports: Taking into account crude oil prices as well as country and transportation risks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    5. Hanyu Lu & Lufei Huang, 2021. "Optimization of Shore Power Deployment in Green Ports Considering Government Subsidies," Sustainability, MDPI, vol. 13(4), pages 1-14, February.
    6. Wang, Shuaian, 2014. "A novel hybrid-link-based container routing model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 165-175.
    7. Zhi Heng & Tsz Leung Yip, 2018. "Impacts of Kra Canal and its toll structures on tanker traffic," Maritime Policy & Management, Taylor & Francis Journals, vol. 45(1), pages 125-139, January.
    8. Chong, Heap-Yih & Lam, Wei-Haur, 2013. "Ocean renewable energy in Malaysia: The potential of the Straits of Malacca," Renewable and Sustainable Energy Reviews, Elsevier, vol. 23(C), pages 169-178.
    9. Sakmani, Ahmad Safwan & Lam, Wei-Haur & Hashim, Roslan & Chong, Heap-Yih, 2013. "Site selection for tidal turbine installation in the Strait of Malacca," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 590-602.
    10. Wu, Lingxiao & Wang, Shuaian, 2020. "The shore power deployment problem for maritime transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 135(C).
    11. Goerlandt, Floris & Islam, Samsul, 2021. "A Bayesian Network risk model for estimating coastal maritime transportation delays following an earthquake in British Columbia," Reliability Engineering and System Safety, Elsevier, vol. 214(C).
    12. Xue Wang & Debin Du & Yan Peng, 2023. "Assessing the Importance of the Marine Chokepoint: Evidence from Tracking the Global Marine Traffic," Sustainability, MDPI, vol. 16(1), pages 1-18, December.

    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. Tovar, Jorge, 2012. "Consumers’ Welfare and Trade Liberalization: Evidence from the Car Industry in Colombia," World Development, Elsevier, vol. 40(4), pages 808-820.
    2. Mogens Fosgerau & André de Palma, 2016. "Generalized entropy models," Working Papers hal-01291347, HAL.
    3. Lurkin, Virginie & Garrow, Laurie A. & Higgins, Matthew J. & Newman, Jeffrey P. & Schyns, Michael, 2017. "Accounting for price endogeneity in airline itinerary choice models: An application to Continental U.S. markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 100(C), pages 228-246.
    4. De Borger, Bruno & Mulalic, Ismir & Rouwendal, Jan, 2016. "Measuring the rebound effect with micro data: A first difference approach," Journal of Environmental Economics and Management, Elsevier, vol. 79(C), pages 1-17.
    5. He, Wentao & Hao, Xiaoli, 2023. "Competition and welfare effects of introducing new products into the new energy vehicle market: Empirical evidence from Tesla’s entry into the Chinese market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 174(C).
    6. Kolar, Petr & Schramm, Hans-Joachim & Prockl, Günter, 2018. "Intermodal transport and repositioning of empty containers in Central and Eastern Europe hinterland," Journal of Transport Geography, Elsevier, vol. 69(C), pages 73-82.
    7. Korenok, Oleg & Hoffer, George E. & Millner, Edward L., 2010. "Non-price determinants of automotive demand: Restyling matters most," Journal of Business Research, Elsevier, vol. 63(12), pages 1282-1289, December.
    8. Al-Alawi, Baha M. & Bradley, Thomas H., 2013. "Review of hybrid, plug-in hybrid, and electric vehicle market modeling Studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 190-203.
    9. Wang, Xinchang & Meng, Qiang & Miao, Lixin, 2016. "Delimiting port hinterlands based on intermodal network flows: Model and algorithm," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 88(C), pages 32-51.
    10. Ubogu, A.E. & Ariyo, J.A. & Mamman, M., 2011. "Port-hinterland trucking constraints in Nigeria," Journal of Transport Geography, Elsevier, vol. 19(1), pages 106-114.
    11. Shanjun Li & Junji Xiao & Yimin Liu, 2015. "The Price Evolution in China's Automobile Market," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 24(4), pages 786-810, October.
    12. Cohen, Jed & Azarova, Valeriya & Kollmann, Andrea & Reichl, Johannes, 2019. "Q-complementarity in household adoption of photovoltaics and electricity-intensive goods: The case of electric vehicles," Energy Economics, Elsevier, vol. 83(C), pages 567-577.
    13. Vallejo, Bertha, 2015. "The emergence of parallel trajectories in the automobile industry: Environmental issues and the creation of new markets," MERIT Working Papers 2015-037, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    14. Patrick Bigler & Doina Maria Radulescu, 2022. "Environmental, Redistributive and Revenue Effects of Policies Promoting Fuel Efficient and Electric Vehicles," CESifo Working Paper Series 9645, CESifo.
    15. Mayer, Thierry & Head, Keith, 2021. "Poor Substitutes? Counterfactual methods in IO and Trade compared," CEPR Discussion Papers 16762, C.E.P.R. Discussion Papers.
    16. Martin, Elliott William, 2009. "New Vehicle Choice, Fuel Economy and Vehicle Incentives: An Analysis of Hybrid Tax Credits and the Gasoline Tax," University of California Transportation Center, Working Papers qt5gd206wv, University of California Transportation Center.
    17. Seelhorst, Michael & Liu, Yi, 2015. "Latent air travel preferences: Understanding the role of frequent flyer programs on itinerary choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 49-61.
    18. Friberg, Richard & Huse, Cristian, 2012. "How to use demand systems to evaluate risky projects, with an application to automobile production," CEPR Discussion Papers 9266, C.E.P.R. Discussion Papers.
    19. Chen, Rui & Meng, Qiang & Jia, Peng, 2022. "Container port drayage operations and management: Past and future," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 159(C).
    20. Daniel McFadden, 2014. "The new science of pleasure: consumer choice behavior and the measurement of well-being," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 2, pages 7-48, Edward Elgar Publishing.

    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:transe:v:48:y:2012:i:1:p:258-265. 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/600244/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.