Determinants of port centrality in maritime container transportation.

This paper adapts Freeman’s measures of degree, closeness and betweenness centrality and applies them to assessing: port centrality in relation to direct connectivity; accessibility to all ports in the network (direct and indirect routes) and; as an intermediary between other ports. An additional parameter added to the formulae ensures that the relative importance of available shipping capacity and foreland market coverage are also accounted for. Validation of this adapted measure is provided by the results obtained from an empirical application. These reveal that foreland market coverage exerts a particularly strong influence on a port’s demand and closeness centrality

International transport costs and the margins of Intra-Latin American maritime trade.

This paper focuses on the analysis of the relationship between maritime trade and transport cost in Latin America. The analysis is based on disaggregated (SITC 5 digit level) trade data for intra Latin maritime trade routes over the period 1999-2004. The research contributes to the literature by disentangling the effects of transport costs on the range of traded goods (extensive margin) and the traded volumes of goods (intensive margin) of international trade in order to test some of the predictions of the trade theories that introduce firm heterogeneity in productivity, as well as fixed costs of exporting. Recent investigations show that spatial frictions (distance) reduce trade mainly by trimming the number of shipments and that most firms ship only to geographically proximate customers, instead of shipping to many destinations in quantities that decrease in distance. Our analyses confirm these findings and show that the opposite pattern is observed for ad-valorem freight rates that reduce aggregate trade values mainly by reducing the volume of imported goods (intensive margin).