Download or read book Measuring the Impact of Port Congestion on Containership Freight Rates written by Nektarios Michail and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the impact of port congestion on containership freight rates. Our results show that port congestion has a positive and significant effect on containership freight rates. However, a 1% increase in port congestion in North America or Europe has an effect of approximately 0.5% on shipping freight rates, while an increase in Asian congestion has a pass-through of approximately 30%. This suggests that the effect on freight rates is driven mostly by the importing region (e.g. North America) and less by the manufacturing region (i.e. Asia). The results are in line with the “last mile problem”, given that these issues occur at the end of the supply chain. Furthermore, this is also in line with the derived demand system in shipping. A return from the October 2021 to the pre-pandemic congestion levels would lead to at least a 30% decline in freight costs.