[email protected]Geneva, May 2010 The demand and supply of The demand and supply of international transport international transport services: services: The relationships between The relationships between trade, transport costs trade, transport costs and effective access to and effective access to global markets global markets
The demand and supply of international transport services: The relationships between trade, transport costs and effective access to global markets. [email protected] Geneva, May 2010. Trade. Transport Services. Transport costs. More income to finance trade facilitation - PowerPoint PPT Presentation
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The demand and supply of The demand and supply of international transport services: international transport services: The relationships between trade, The relationships between trade, transport costs and effective access to transport costs and effective access to global marketsglobal markets
TransportTransportcostscosts
TradeTrade
TransportTransportServicesServices
More income to finance trade facilitation
-> Better trade facilitation-> More Trade-> More income to finance
trade facilitation
Ango
la
Lower Transport Costs-> More trade-> Economies of scale-> Lower Transport Costs
Better services-> More trade-> More income to
finance infrastructure-> Better services
Suez
Can
al
More trade-> More shipping supply-> More competition-> lower freights-> More trade
The challenge:The challenge:
• Avoid a vicious circle, where high transport costs and low service levels discourage trade, which will further endear transport and reduce connectivity…
Freight rates in May 2010Freight rates in May 201040’ container from Dalian to • DUBAI 1200 • COLOMBO 1300 • B.ABBAS 1300• CALCUTTA 1700• BAHRAIN 1800 • UM QUASER 3000 • PORT SUDAN 3300• ROTTERDAM 3500• TEMA 4600• SANTOS 4800• VALPARAISO 5200
Dependent variable: maritime transport costs per tonne of containerizable cargo
Better Better port infrastructureport infrastructure reduces maritime transport costsreduces maritime transport costs
Port reformPort reform
Dependent variable: maritime transport costs per tonne of containerizable cargo
Port reformPort reform
Better (perceived)Better (perceived) port efficiencyport efficiency reduces maritime transport costsreduces maritime transport costs
Dependent variable: maritime transport costs per tonne of containerizable cargo
Port reformPort reform
Better Better general transport infrastructuregeneral transport infrastructure does NOT reduce maritime transport costsdoes NOT reduce maritime transport costs
Dependent variable: maritime transport costs per tonne of containerizable cargo
Port privatizationPort privatization in the EXPORTING country in the EXPORTING country reduces maritime transport costsreduces maritime transport costs
Port reformPort reform
Dependent variable: maritime transport costs per tonne of containerizable cargo
Trade facilitationTrade facilitation in the IMPORTING country in the IMPORTING country reduces maritime transport costsreduces maritime transport costs
Port reformPort reform
Dependent variable: maritime transport costs per tonne of containerizable cargo
Better Better connectivityconnectivity between ports/ between ports/ more competition among carriersmore competition among carriersreduces maritime transport costsreduces maritime transport costs
Port reformPort reform
To sum up: To sum up: Differences in maritime freights depend on…Differences in maritime freights depend on…• Distances• Type & value of
Direct connectivity?Direct connectivity?Out of 162 x 161 pairs of countries: How many are connected by direct
services?
Source: UNCTAD , based on data from Containerization International
How to deal with How to deal with indirect connections?indirect connections?For all pairs of countries• Direct services yes/no?• How many transshipments do I need?• Shortest distance with transshipments?• Largest vessels with transshipments? • Highest competition with transshipments
TransportTransportcostscosts
TradeTradeVolumesVolumes
TransportTransportServicesServices
?
Determinants of maritime connectivityDeterminants of maritime connectivity