Navigating the Waves of Global Shipping: Drivers and Aggregate Implications


This paper studies the drivers of global shipping dynamics and their aggregate implications. We document novel evidence on the dynamics of global shipping supply, demand, and costs. Motivated by this evidence, we set up a dynamic model of international trade with a global shipping market where shipping firms and importers endogenously determine shipping supply and costs. We find the model successfully accounts for the dynamics of global shipping observed in the aftermath of COVID-19 as well as at business cycle frequencies. We find that accounting for global shipping is critical for the dynamics of aggregate economic activity.

Federal Reserve Bank of St. Louis Working Paper
Jason Dunn
Jason Dunn
Senior Economic Research Associate

I am a Senior Economic Research Associate at the Federal Reserve Bank of St. Louis. I will be beginning a PhD program in Economics at Boston University in Fall 2024.