IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v63y1981i1p47-57..html
   My bibliography  Save this article

Major Determinants of Ocean Freight Rates for Grains: An Econometric Analysis

Author

Listed:
  • James K. Binkley
  • Bruce Harrer

Abstract

Econometric analysis of ocean grain rates suggests that ship size and trade volume are of approximately equal importance with distance in determining rates. Use of large ships reduces at-sea costs and hence the role of distance; but larger ships appear to incur higher port costs, which suggests that efficient port facilities are required for scale economies to be realized. Policies to improve shipping technology and increase trade volume can lead to lower rates, reduce geographic differences among exporters, and thus lead to more competitive markets. This implies that the role of transportation in trade analysis should not be ignored.

Suggested Citation

  • James K. Binkley & Bruce Harrer, 1981. "Major Determinants of Ocean Freight Rates for Grains: An Econometric Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 47-57.
    • Handle: RePEc:oup:ajagec:v:63:y:1981:i:1:p:47-57.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1239810
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

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

    Citations

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


    Cited by:

    1. de Lima, Lilian M. & de Pelegrini Elias, Lilian & Caixeta-Filho, Jose V. & de Campos Coleti, Jamile, 2016. "Fertilizer freight rate disparity in Brazil: a regional approach," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), September.
    2. Michael S. Haigh & Nikos K. Nomikos & David A. Bessler, 2004. "Integration and Causality in International Freight Markets: Modeling with Error Correction and Directed Acyclic Graphs," Southern Economic Journal, John Wiley & Sons, vol. 71(1), pages 145-162, July.
    3. Lence, Sergio H.(Sergio Horacio), 1988. "Transfer costs in agricultural trade: implications for empirical research," ISU General Staff Papers 1988010108000017599, Iowa State University, Department of Economics.
    4. Binkley, James K., 1981. "Ocean Freight Rate Variability as a Factor in International Agricultural Trade," 1981 Annual Meeting, July 26-29, Clemson, South Carolina 279415, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Stephen W. Fuller & Luis Fellin & Ken Eriksen, 2000. "Panama canal: How critical to U.S. grain exports?," Agribusiness, John Wiley & Sons, Ltd., vol. 16(4), pages 435-455.
    6. Johnson, Marc A. & Kiser, Harvey L., 1986. "OPTIMAL U.S. TRADE FOR AGRICULTURAL PRODUCTS UNDER CHANGING COMPARATIVE ADVANTAGE Marketing Costs, Structures and Practices," 1986 Annual Meeting, July 27-30, Reno, Nevada 278453, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Wilson, William W., 1985. "Railroad Pricing and Deregulation," Transportation Research Forum Proceedings 1980s 311732, Transportation Research Forum.
    8. Atanu Ghoshray, 2009. "On Price Dynamics for Different Qualities of Coffee," Review of Market Integration, India Development Foundation, vol. 1(1), pages 103-118, April.
    9. Makus, Larry & Fuller, Stephen, 1984. "Sensitivity Of U.S. Port Areas To Locational Changes In Export Grain And Soybean Demand," 1984 Annual Meeting, August 5-8, Ithaca, New York 279006, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Ghoshray, Atanu, 2010. "Smooth transition effects in price transmission: The case of international wheat export prices," Economics Letters, Elsevier, vol. 106(3), pages 169-171, March.
    11. Beilock, Richard P. & Koburger, John H. & Morgan, Jeffrey P., 1984. "Explaining Truck Rate Variations for Produce Shipped to the Northeast," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 13(1), pages 1-8, April.
    12. Dunn, James W. & Stair, Anthony G., 1986. "An Analysis of the Long-Run Market for shipping services for dry bulk commodities," Transportation Research Forum Proceedings 1980s 311812, Transportation Research Forum.
    13. Dunn, James W. & Gianoulades, Andrea, 1985. "A Short Run Analysis of ocean freight rates for U.S. grain exports," Transportation Research Forum Proceedings 1980s 311799, Transportation Research Forum.
    14. Gallagher, Paul W., 1983. "International Price Transmission In The U.S.-Japan Softwood Trade," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(2), pages 1-12, December.
    15. Barnett, Doug & Binkley, James K. & McCarl, Bruce A., 1984. "Port Elevator Capacity And National And World Grain Shipments," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 9(1), pages 1-13, July.
    16. Daniel H. Pick & Timothy A. Park, 1991. "The Competitive Structure of U.S. Agricultural Exports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(1), pages 133-141.
    17. Koo, Won W. & Bredvolt, Sarahelen T., 1982. "U.S. Grain Railroad Rate Structure and Deregulation," Agricultural Economics Reports 23405, North Dakota State University, Department of Agribusiness and Applied Economics.
    18. Robert J. Hauser & Barry Parker, 1991. "Transoceanic impediments to increased US grain exports," Agribusiness, John Wiley & Sons, Ltd., vol. 7(3), pages 301-310.
    19. Jones, James R., 1995. "Maritime Shipping Issues And Us Agricultural Exports," A.E. Research Series 305142, University of Idaho, Department of Agricultural Economics and Rural Sociology.

    More about this item

    Statistics

    Access and download statistics

    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:oup:ajagec:v:63:y:1981:i:1:p:47-57.. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    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.