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Transshipment in the United States

23 Pages Posted: 24 May 2004  

Soamiely Andriamananjara

World Bank - World Bank Institute (WBI)

Hugh Arce

United States International Trade Commission

Michael J. Ferrantino

World Bank - Trade and Competitiveness Global Practice

Abstract

Data representing transshipment or re-exports are almost always excluded from analytical portrayals of international trade, yet transshipment is potentially an important phenomenon in understanding a number of economic questions, and is increasing in importance. Rapid technological change in areas such as containerization and hub-and-spoke routing has promoted the practice of transshipment. While there are significant gaps in the data, the share of re-exports in global exports has undoubtedly increased rapidly, from perhaps 1 in 20 in the mid-1980s to perhaps 1 in 6 today. Econometric analysis of U.S. domestic exports and foreign exports (re-exports) over pairs of U.S. ports and destinations suggests that re-exports are significantly more sensitive than domestic exports to factors influencing transaction costs, including distance, containerization, price-fixing liner agreements, and port efficiency and restrictive port policies in the importing country.

Keywords: Re-exports, transshipment, shipping

JEL Classification: F14

Suggested Citation

Andriamananjara, Soamiely and Arce, Hugh and Ferrantino, Michael J., Transshipment in the United States. Available at SSRN: https://ssrn.com/abstract=539682 or http://dx.doi.org/10.2139/ssrn.539682

Soamiely Andriamananjara

World Bank - World Bank Institute (WBI) ( email )

1818 H Street, N.W.
Washington, DC 20433
United States
202 458 0284 (Phone)

Hugh Arce

United States International Trade Commission ( email )

500 E Street, SW
Washington, DC 20436
United States

Michael J. Ferrantino (Contact Author)

World Bank - Trade and Competitiveness Global Practice ( email )

Washington, DC
United States

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