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<strong>ECSA</strong><br />
<strong>The</strong> <strong>Tramp</strong> <strong>Shipping</strong> <strong><strong>Mar</strong>ket</strong><br />
4.2 <strong>The</strong> cost of freight<br />
Table 3 above shows the growth of total trade since 2001, split by region. Between 2005 and<br />
<strong>2015</strong>, global trade is estimated to have increased by 4% per annum. According to UNCTAD<br />
estimates, freight costs as a % of import value remained steady at around 8% during this period.<br />
This period of relative stability in terms of freight costs stands at odds against the long-term trend<br />
of falling freight costs per unit value (in real terms) highlighted in figure 5 below.<br />
Figure 4 <strong>The</strong> Cost of Transporting Coal 1947 to 2013<br />
Note: costs based on spot rates for average vessel size at transport date. Tankers increased from<br />
17,000 dwt to 280,000 dwt and dry vessels from 10,000 dwt to 77,000 dwt. Freights are at market prices<br />
and are not deflated.<br />
Source: <strong>Mar</strong>itime Economics 3 rd Ed, page 74<br />
Figure 5 <strong>The</strong> Cost of Transporting Coal 1947 to 2013, (1950s Prices)<br />
Clarkson Research Services Limited 19 <strong>Mar</strong>ch <strong>2015</strong>
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