We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

Shipping inside the Box: Containerization and Trade

Shipping inside the Box: Containerization and Trade
Date:
22 March 2017
Category:
Trade
Authors:
A.Kerem Cosar, Banu Demir
Tags:
Trade

Print Article:

We quantify the effect of container technology on transport costs and trade by estimating the modal choice between containerization and breakbulk shipping using micro-level trade data. The model is motivated by novel facts that relate container usage to shipment, destination and firm characteristics. We find container transport to have a higher first-mile cost and a lower distance elasticity, making it cost effective in longer distances. At the median distance across all country pairs, the box decreases variable shipping costs between 16 to 22 percent. The box explains a significant amount of the global trade increase since its inception: a quantitative exercise suggests that Turkish and U.S. maritime exports would have been about two-thirds of what they are today in the absence of containers.

ERIA-DP-2016-37

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Latest Articles

Patent information, workshops, invention business, education, AMS, ASEAN
15 May 2024
Editor(s)/Author(s): Yoshitoshi Tanaka
Patent information is required for prior art research when applying[...]
Tourism, COVID-19, SMEs, Tourism Demand, Japan
7 May 2024
Editor(s)/Author(s): Yoko Konishi
Tourism was one of the sectors most damaged by COVID-19. The number[...]