Navigating the Waves of Global Shipping: Drivers and Aggregate Implications

RePEc Short ID: ple692
ORCID iD: 0000-0002-0072-0441

Dunn, Jason; Leibovici, Fernando

doi:10.20955/wp.2023.002

Working Paper

Navigating the Waves of Global Shipping: Drivers and Aggregate Implications

Abstract: This paper studies the drivers of global shipping dynamics and their aggregate implications. We document novel evidence on the dynamics of global shipping supply, demand, and prices. Motivated by this evidence, we set up a multi-country dynamic model of international trade with a global shipping market where shipping companies and importers endogenously determine shipping supply and prices. We find the model can successfully account for the dynamics of global shipping observed in the aftermath of COVID-19 and that accounting for these has important implications for the dynamics of aggregate economic activity.

Keywords: international shipping; international trade; shipping supply; shipping demand; shipping prices;

JEL Classification: F1; F41; L91;

https://doi.org/10.20955/wp.2023.002