Freight Costs: Air and Sea

Research output: Chapter in book / Conference proceedingChapter in an edited book (as author)Academic researchpeer-review


Cost components of air freight transport and maritime shipping are identified and compared by functional areas. Key influential factors of these two modes of freight transport are discussed and special features of individual mode are highlighted. The chapter also provides examples of simplified cost functions of a trip, which are constructed based on one or two key influential factors. Econometric specifications that are widely applied for modeling company-level costs are summarized, followed by a brief discussion on economies of scale, density, and vehicle size based on findings in the literature.

Original languageEnglish
Title of host publicationInternational Encyclopedia of Transportation
Subtitle of host publicationVolume 1-7
Number of pages10
ISBN (Electronic)9780081026724
ISBN (Print)9780081026717
Publication statusPublished - 1 Jan 2021


  • Air freight
  • Aircraft size
  • Circular network
  • Cobb-Douglas function
  • Cost components
  • Direct operating costs
  • Economies of density
  • Economies of scale
  • Hub-and-spoke network
  • Ship size
  • Shipping
  • Translog function
  • Trip cost

ASJC Scopus subject areas

  • General Social Sciences


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