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Modeling Freight Markets for Coal

Author

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  • Andersson, Jonas

    (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)

  • Jörnsten, Kurt

    (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)

  • Strandenes, Siri Pettersen

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

  • Ubøe, Jan

    (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)

Abstract

In this paper we study bulk shipping of coal between the central regions in the world. We compare the performance of cost-minimizing models with a gravity model approach. The main finding in the paper is that cost minimizing models provide relative poor fits to data. A simple one parameter gravity model, however, provides very satisfactory fits to observed behaviour.

Suggested Citation

  • Andersson, Jonas & Jörnsten, Kurt & Strandenes, Siri Pettersen & Ubøe, Jan, 2009. "Modeling Freight Markets for Coal," Discussion Papers 2008/26, Norwegian School of Economics, Department of Business and Management Science.
    • Handle: RePEc:hhs:nhhfms:2008_026
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    File URL: http://hdl.handle.net/11250/163960
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    References listed on IDEAS

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    1. Daniel C. Knudsen & A. Stewart Fotheringham, 1986. "Matrix Comparison, Goodness-of-Fit, and Spatial Interaction Modeling," International Regional Science Review, , vol. 10(2), pages 127-147, August.
    2. Choi, E. Kwan & Harrigan, James, 2003. "Handbook of International Trade," Staff General Research Papers Archive 11375, Iowa State University, Department of Economics.
    3. Anas, Alex, 1983. "Discrete choice theory, information theory and the multinomial logit and gravity models," Transportation Research Part B: Methodological, Elsevier, vol. 17(1), pages 13-23, February.
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    Cited by:

    1. Abdolrasoul Ghasemi & Elnaz Miandoabchi & Shiva Soroushnia, 2021. "The attractiveness of seaport-based transport corridors: an integrated approach based on scenario planning and gravity models," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(3), pages 522-547, September.
    2. Katarzyna Kopczewska, 2013. "Roads as Channels of Centrifugal Policy Transfer: A Spatial Interaction Model Revised," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 7(3), September.
    3. Wenming Shi & Kevin X. Li, 2017. "Themes and tools of maritime transport research during 2000-2014," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(2), pages 151-169, February.
    4. Haiying Jia & Ove Daae Lampe & Veronika Solteszova & Siri P. Strandenes, 2017. "An automatic algorithm for generating seaborne transport pattern maps based on AIS," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(4), pages 619-630, December.
    5. Sahar Babri & Kurt Jørnsten & Michael Viertel, 2017. "Application of gravity models with a fixed component in the international trade flows of coal, iron ore and crude oil," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(2), pages 334-351, June.

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    More about this item

    Keywords

    Bulk freight; cost efficiency; gravity modeling;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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