THE GEOGRAPHY OF TRANSPORT SYSTEMS


Factor Outcome
Growing availability of containers More containers available on freight markets. Ubiquitous transport product.
Rising demand and commodity prices More commodities in circulation (usage of containerization to accommodate growth).
New producers and consumers (marginal markets penetration).
Fluctuations and rises in bulk shipping rates Decrease in the ratio cargo value per ton shipping rate for commodities.
Volatility (rates) and risk (hedging).
Search for options to bulk shipping.
Low container shipping rates Increase in the ratio cargo value per TEU shipping rate for commodities.
Relative rate stability.
Containerization more attractive as an option.
Imbalances in container shipping rates Export subsidy for return cargo.
Empty containers repositioning Pools of containers available for backhauls.

Growth Factors behind the Containerization of Commodities

.