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Shipping route choice across geographies: Coastal vs. landlocked countries
Institution:1. Department of Economics, Boston College, United States;2. Department of Geography and Earth Sciences, The University of North Carolina at Charlotte, United States;3. Department of Economics, The University of North Carolina at Charlotte, United States;1. Department of Public Administration and Sociology, Erasmus University Rotterdam, Burgemeester Oudlaan 50, 3062PA, Rotterdam, the Netherlands;2. Faculty of Policy, Technology, and Management, Delft University of Technology, Jaffalaan 5, 2628BX, Delft, the Netherlands;3. Research Centre for Sustainable Port Cities, Rotterdam University of Applied Sciences, Heijplaatstraat 23, 3089JB, Rotterdam, the Netherlands;4. Project EURECA (Effective Use of Reefer Containers Through the Port of Rotterdam – a Transition Oriented Approach), the Netherlands;1. Department of Industrial Engineering, University of Jeddah, Jeddah, Saudi Arabia;2. Department of Infrastructure Engineering, University of Melbourne, Parkville, Victoria 3010, Australia;1. Department of Economics and Business Studies, University of Genova, Italy;2. European Commission, Joint Research Centre (JRC), Ispra, Italy;3. Universidade Federal de Sao Paulo, Brazil;4. School of Engineering, Newcastle University, UK
Abstract:This paper investigates how geography and transportation costs influence the decisions by shippers of which port of export to use. Using a large sample of disaggregated shipments originating from several countries in Europe, we show that European logistics networks exhibit a low level of international integration that affects shipping route choice. Furthermore, we find significant differences in shipping behaviors across landlocked and coastal countries, with shippers in landlocked countries avoiding long land transportation, crossing borders readily, and placing more value on transportation infrastructure. These findings have implications in designing port competitiveness strategies and economic development policies in landlocked countries.
Keywords:Shipping route choice  Port competition  Transportation costs  National borders  Landlocked  Geographical barriers
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