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Do Caribbean exporters pay higher freight costs?

Author

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  • Yeats, Alexander J.
Abstract
The objective of this study is to analyze transportation costs incurred by Caribbean countries on their major export products to determine whether there is evidence of freight rate discrimination against these countries, or whether their transport costs are significantly different from those of other exporters. A key finding is that a distinction must be made between freight rates for air cargo services as opposed to ocean transport. For exports by ocean carriers the empirical evidence is quite different than that for air shipments. This study also finds that Caribbean exporters are more likely to experience adverse transport costs on food and agricultural raw materials than they are on manufactured goods where a relatively high percentage of shipments are by air. The report also suggests the following lines of analysis: how the Caribbean countries might best exploit the major cost advantage they have for products exported by air, why is ocean transport less cost efficient than air freight for Caribbean countries, and why do large adverse transport cost differentials appear to be concentrated in certain product groups like food and agricultural raw materials?

Suggested Citation

  • Yeats, Alexander J., 1989. "Do Caribbean exporters pay higher freight costs?," Policy Research Working Paper Series 244, The World Bank.
    • Handle: RePEc:wbk:wbrwps:244
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    References listed on IDEAS

    as
    1. Yeats, Alexander J, 1976. "An Analysis of the Incidence of Specific Tariffs on Developing Country Exports," Economic Inquiry, Western Economic Association International, vol. 14(1), pages 71-80, March.
    2. Robert E. Lipsey & Merle Yahr Weiss, 1974. "The Structure of Ocean Transport Charges," NBER Chapters, in: Explorations in Economic Research, Volume 1, Number 1, pages 162-193, National Bureau of Economic Research, Inc.
    3. J. M. Finger & A. J. Yeats, 1976. "Effective Protection by Transportation Costs and Tariffs: A Comparison of Magnitudes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(1), pages 169-176.
    4. Yeats,Alexander James, 1989. "Shifting patterns of comparative advantage : manufactured exports in developing countries," Policy Research Working Paper Series 165, The World Bank.
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