The Freight Market

Abstract

Freight is the reward payable to a carrier for the carriage and arrival of goods in a recognized condition. The pricing of a cargo ship’s services is dependent on the forces of supply and demand, but the factors underlying them are perhaps more complicated than is the case with most other industries. As with all forms of transport, the demand for shipping is derived from the demand for the commodities carried, which is itself affected by the competition of substitute goods. Ships on any particular route are competing against other carriers on the same route, vessels serving alternative supply areas, air transport and, in coastal services, inland transport.