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Freight Markets in the Global Container Shipping – Their Dynamics and Its Impact on the Freight Rates Quoting Mechanism

Grzelakowski A. S.

TransNav : International Journal on Marine Navigation and Safety of Sea Transportation

2018

Vol. 12, no. 4

721--726

The main subject of research involves the global freight market in the sector of container shipping, and in particular the mechanism for setting up freight rates. The aim of research is to identify and analyse the features and characteristics typical of this market, resulting from the character of market mechanism, as well as to indicate factors which determine market fluctuations and evaluate its impact for the carriers and shippers. Moreover, the causes and effects of fluctuations in effective demand and potential supply in the sector of freight market were identified in terms of their impact on freight rates. The analysis includes three main types of container markets, existing today on a global scale, and characterizes the strategies and modes of behaviour of global container operators undertaking activity on these markets. By applying the theory of mass random service and queueing theory to examine the container freight market mechanisms the method of freight rates short-term forecasting was presented which can be used as an instrument for taking decisions in the sector of global maritime logistics.