Determinants of liner shipping connectivity

Abstract

The study of shipping connectivity has taken more attention from researchers in recent years. This paper analyzes the determinants of liner shipping connectivity for a sample of 100 maritime countries. By means of the Technical panel two types of estimation were led to detect the determinants of the Liner Shipping Connectivity. A global analysis was led in a first stage. A second analysis based on a geographical decomposition was also led for the same reason. The main examined maritime regions are The Mediterranean Sea, Red Sea, North Sea, Arabian Gulf, and the Caribbean Sea. The UNCTAD’s database over the period 2007-2014 was used. UNCTAD’s Liner Shipping Connectivity Index is the endogenous variable. Ten explanatory variables are used to explain the variation of the LSCI. Among it, six variables represent the logistic performance. The fourth rest variables are container transit time, container transport cost, the gross domestic product, and containers per capita. This study could be used to explain the density level of liner shipping connectivity between countries in a global and a regional context. Results show that all explanatory variables have a positive impact on the liner shipping connectivity, but with obvious differences in studied maritime regions worldwide. Findings can help decision-makers to determine the priorities for future investments in the maritime sector and the related activities.