A. DETERMINANTS OF MARITIME
TRANSPORT COSTS
Policymakers and shippers have an interest in
understanding the determinants of international
maritime transport costs. Maritime transport handles
over 80 per cent of the volume of global trade (and
about 90 per cent of developing countries’ volume
of international trade is seaborne) and knowing the
reasons for differences in what a trader pays for the
international transport of merchandise goods can help
identify possible areas for intervention by policymakers.
Extensive recent research has helped identify the main
determinants of freight costs (see Cullinane et al.,
2012; ECLAC, 2002; Sourdin and Pomfret, 2012; and
Wilmsmeier, 2014; and the literature reviewed therein).
Figure 3.1 summarizes seven groups of determinants.
The remainder of this section will introduce each one of
these groups and discuss the options for policymakers
to help reduce international maritime transport costs.