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Department of Business and Management Science, Norwegian School of Economics (NHH) Discussion Papers, Department of Business and Management Science, Norwegian School of Economics (NHH)

No 2008/26:
Modeling Freight Markets for Coal

Jonas Andersson (), Kurt J÷rnsten (), Siri Pettersen Strandenes () and Jan Ub°e ()

Abstract: In this paper we study bulk shipping of coal between the central regions in the world. We compare the performance of cost-minimizing models with a gravity model approach. The main finding in the paper is that cost minimizing models provide relative poor fits to data. A simple one parameter gravity model, however, provides very satisfactory fits to observed behaviour.

Keywords: Bulk freight; cost efficiency; gravity modeling; (follow links to similar papers)

JEL-Codes: F10; F17; R41; (follow links to similar papers)

13 pages, February 10, 2009

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