Freight Price Research Articles

Understanding the information of shock effects between energy commodity prices and maritime freight rate

Research has identified volatility transmission from the oil market to the tanker freight market through external shocks. However, in the presence of intricate nonlinear structures, the academic literature often encounters difficulties in identifying cycles and their correlations across various timescales. This paper provides a multi-market analysis to comprehend the information from shock effects on different tanker routes and multi-peak fitting. Under different shock regimes, crude oil market and tanker freight rate shocks could transit bi-directly. When events occur, the crude oil market prices the expectations. However, when the actual performance of the future market differs from the traders’ predictions of the future market, a price gap exists. Generally, the trade opportunity is tough to catch up on because only partial information can be found. In this study, we investigate the volatility connection of multi-markets and shock effects to clarify previously undisclosed information using multi-peak analysis. The information gathered and double-checked by cargo markets, crude oil supply-demand balance, and tanker freight prices of various tanker types could assist us in identifying prospective trends and investment opportunities. The volatility of each market, as well as the correlation of multi-markets, gives insights to crude oil dealers, tanker market participants, and energy regulators.

Assessing the Implications of the Red Sea Conflict on the Indian Supply Chain: A Comprehensive Analysis

The Red Sea, a vital trading route for India, is disrupted by the ongoing conflict between the Houthi rebels and Israel. This study aims to investigate how the dispute affects India’s supply chain in several different industries. The possible repercussions include restricted access to raw materials, delays and higher prices in maritime transportation, and concerns of energy scrutiny from disruptions in gas and oil. To lessen the impact on the economy we examine alternate trade routes and assess the potential effects on investors’ confidence. This study aims to examine and assess the diverse repercussions of the Red Sea War on the Indian supply chain offering insights on strategic planning, policy decisions and risk mitigation measures for the Indian government, businesses and stakeholders. The Red Sea crisis has had a multifaceted impact on different sectors of the Indian economy. In the healthcare sector, a huge number of medical supplies and prescription drugs which are transported via sea have seen a spike in the shipping cost due to rerouting which has disrupted the medical supply chain. On the other hand, there is no direct impact on the consumer sector; however, the increased freight prices and geopolitical concerns impact the wholesale price index which is expected to hike and influence the food grain prices and exports of basmati rice in particular owing to the well-established domestic supply chain. The FMCG industry is comparatively protected from the adverse effects of the crisis in contrast to industries such as agricultural and maritime foods. This crucial route, particularly affecting goods moving between Europe, North Africa, and the Middle East, historically used for nearly half of India's exports and a third of imports, is now deemed unsafe. Ships are being rerouted around Africa's Cape of Good Hope, leading to a 30% increase in transit times and a surge in shipping costs. Indian companies are feeling the heat – Arvind Ltd. faces lost revenue due to order backlogs, while exporters like Euro Fruits grapple with quadrupled freight costs and declining grape quality. The auto industry is also impacted, with companies like MG Motor India experiencing delays and rising logistics expenses. India’s energy, resources and industrial sectors have all been severely disrupted by the Red Sea crisis with critical exports including chemicals and petroleum products being heavily impacted. Since the Suez Canal handles a significant amount of India’s import of crude oil, rerouting owing to continual conflicts presents logistical difficulties and possible inflationary pressures. The government is actively engaging in efforts to mitigate these impacts by looking into alternative shipping lanes and providing assistance to affected exports. The possibility of delays and financial costs is still a major issue for businesses navigating obstacles relating to insurance premiums and logistical difficulties. To navigate these challenges, the Indian government is exploring a multi-pronged approach. Financial support in the form of direct subsidies, soft loans, and government-backed cargo insurance could help businesses offset increased costs and mitigate risks associated with delays and rerouting. Additionally, India is looking to diversify its trade routes by exploring alternative sources for crude oil and LNG imports, along with utilizing ports outside the conflict zone. Long-term solutions are also being considered, such as investing in the Northern Sea Route and expanding land transport infrastructure. Renewed focus on the India-Middle East-Europe Economic Corridor (IMEC) project could offer a comprehensive network connecting India, the Middle East, and Europe. By implementing these strategies, India can build a more resilient supply chain and minimize the long-term impact of the Red Sea conflict on its trade.

Ship-from-store omnichannel using a 4pl digital platform

Goal: This research aimed to simulate a ship-from-store operation process from an omnichannel retailer. Based on this we proposed a conceptual model orchestrated through a 4PL. Through the results evaluated by performance indicators in the simulation, computational results of using the approach in a real case can be added to decision-making and the literature. Design / Methodology / Approach: This paper comprises the collection of sales and logistics data from a retailer for developing a computer simulation using R programming language, so that the ship-from-store strategy is evaluated. Data from an omnichannel retailer supported the development of two scenarios: the first represent retailer's current praxis; in the second, the logistics orchestration model is applied. The analysis considers two performance indicators: freight price and freight time. Results: The results demonstrate that after adopting the ship-from-store strategy the omnichannel retailer can reduce the freight price by up to 60%. Regarding the delivery time, a reduction of up to 8 days is envisioned. These reductions positively impact the customer experience in the online channel, increasing its attractiveness. Limitations of the investigation: The limitations of the research are based on a logistics orchestration model for a retailer that is omnichannel and has several stores within its national territory with stock. This stock is sufficient to implement a ship-from-store process in this retailer. Practical implications: This retailer, by applying the method, is able to achieve better customer rewards. In the same way, it manages to make the online channel more attractive at the lowest cost and in the shortest time. This retailer is also able to use new technological resources through a 4PL. This serves as a technological tool for the logistics orchestration operation. Originality / Value: An original computer simulation for a 4PL digital platform orchestrating the ship-from-store strategy in omnichannel retailing is presented.

Effect of Commuters’ Income on the Ferry Operational Costs in Lagos State, Nigeria

Commuters’ mobility plays significant roles in urban economic due to its reliance on the cheapest means and available transportation system from one location to another. Commuters’ income in Lagos State affects the number of traffic generated along waterways during travel behavior such as commuters’ occupation and commuters’ level of car ownership. This study aims to estimate the impact of commuters’ income on the ferry operations in Lagos state.
 The research was carried out in four selected waterways terminals in Lagos State. The authors used primary data with the aid of snow balling sampling technique to administered 836 questionnaires at the selected inland waterways terminals in Lagos State. The study used multiple regressions to analyze the obtained data in the study area.
 The result of the findings revealed that majority of the respondents representing 63.9% (523) of the sample size had no car. Furthermore, passenger’s income that was measured using passengers’ occupation and passengers’ car ownership had a significant impact on ferry operational costs in Lagos State having R value of .699 (69.9%) and p-value of 0.000. This shows that ferry operational costs can be determined by passengers’ daily or monthly income.
 The study concluded that increase in mobility demand along waterways can be experienced when traveling cost is minimal compared to other means of transportation. It was recommended that government should subsidize the freight price and come up with a policy that will enforce usage of ferry service.

Study on the maritime trade pattern and freight index in the post-epidemic era: Evidence based on dry bulk market Auto-matic Identification System (AIS) data

The BDI is a barometer of maritime trade, and the shipping trade network may graphically reflect trade pattern evolution. Because commerce influences freight prices, it is worthwhile to consider the influence of maritime network characteristics on freight rates. To begin, this article constructs maritime networks using AIS data and displays the dry bulk trade trend in the period following the pandemic. This will assist shipowners and laypeople in comprehending the evolution of dry bulk maritime commerce in the post-pandemic age. Second, the PVAR model is implemented in this work to investigate the connection between the trade in shipping mode and freight prices. The empirical study demonstrated that shipowners ought to devote more attention to port linkages, particularly significant ports in the maritime network in the years following the pandemic.

Dynamic pricing analysis of railway freight transport under different carbon emission penalties

in order to better promote the transportation industry to reduce carbon emissions and improve the competitiveness of railway freight in the whole freight market, to achieve the “double carbon” strategy and promote the “transit rail”. In this paper, considering the dynamic pricing of freight volume and freight price, a two-layer programming model is established under the minimum social total cost of railway and road. The upper level considers the income of railway freight, and the lower level considers the total social cost of freight transportation, so as to realize the increase of railway freight revenue and the decrease of the general total expenditure paid by freight owners. Considering the transportation of bulk commodity freight from shandong to sichuan, it is concluded that the railway freight market has a good development prospect under the consideration of the total social expenditure such as carbon emission. Under the carbon emission charge, the appropriate increase of railway freight rate will not lead to the reduction of railway freight volume. As rail freight becomes more competitive under increasingly stringent carbon emissions penalties, the volume of rail freight will continue to rise even after appropriate increases in rail freight fees. At this point, rail freight companies can transport more goods and gain higher returns, slightly increasing the overall cost borne by shippers in a broad sense, and helping to reduce carbon emissions in the process of freight transport.

Multidimensionalidade do preço de frete rodoviário de grãos agrícolas: uma abordagem de um modelo de regressão linear múltipla por seleção de variáveis

ABSTRACT: The road system is the main mode used for the transportation of agricultural cargo, and in some cases, it is the only option for handling this type of product. This dependence means that the implementation of tools to support the management of logistical costs can reduce the financial impact with the transport felt by the economic agents operating in the soybean chain. This study contributed to a better understanding of the variables that make up the cost of road freight, generating a system of road freight prediction from a multiple linear regression model using the selection of variables Stepwise, Forward, and Backward elimination. This being said, this research intends to evaluate whether the behavior of soybean road freight is influenced by the variables that make up the productive, economic, and infrastructure dimensions in price formation. The regression models had an explanatory power of 87.20%. In the infrastructure dimension, the most impact variable in soybean road freight was the distance traveled; in the economic dimension, the variables of inflation and fuel price stood out; while in the productive dimension, the main contribution was the volume of production. A more assertive predictability of logistical costs and better understanding of the dynamics of freight price formation helps industry agents in planning and decision-making. Another contribution of this study is that it can be used as a practical tool for predicting soybean road freight on several transportation routes.

Non-cooperative and Nash-bargaining game of a two-parallel maritime supply chain considering government subsidy and forwarder's CSR strategy: A dynamic perspective

In recent years, sustainable and environmental issues have increasingly raised concerns of the government and enterprises. Motivated by the environmental regulations of IMO and shippers' green preferences, new energy vessels (NEV) have been developed, and there are still many traditional fuel vessels (TFV) providing maritime transport services. Considering the reality of the shipping market, a two-parallel maritime supply chain (MSC) involving a NEV carrier, a TFV carrier, and a freight forwarder with corporate social responsibility (CSR) has been constituted. The government may encourage the NEV carrier to make green innovation (GI) by providing subsidies. Most existing research on supply chain decisions considered different supply chain power structures or coordination issues and assumed that enterprises are entirely rational. However, in practice, bargaining games between stakeholders are common. Consequently, non-cooperative game (NCG), two types of Nash-bargaining game, i.e. horizontal Nash-bargaining game (HNBG) and vertical Nash-bargaining game (VNBG) are formulated in this paper. Based on bounded rationality, we investigate the dynamic price and GI adjustment strategies of MSC participants under government subsidy (GS) and freight forwarder's CSR (FCSR) with three game patterns. Furthermore, the impacts of adjustment parameters, GS, and FCSR on equilibrium strategies and expected profits are also explored. Setting NCG as the benchmark case, we uncovered that both HNBG and VNBG help improve the NEV carrier's equilibrium green innovation level (GIL), and HNBG (VNBG) raises (lowers) equilibrium prices of two carriers (freight prices and selling prices). In addition, HNBG (VNBG) can stabilize the adjustment of GI (freight prices and selling prices). For all MSC participants, excessive adjustment strategies harm robust revenues. We also found that GS and FCSR have different impacts on the dynamic decision-makings. When adjustment parameters are in their stable regions, GS always benefits the NEV carrier and the freight forwarder. But the impact of GS on the TFV's revenues may be related to the intensity of FCSR. Moreover, the effect of FCSR on stakeholders' expected profits depends on the choice of game pattern. Finally, we revealed that the TFV carrier's CSR-sharing behavior helps improve the stability of the MSC dynamic decisions and promotes the mutual benefit of MSC participants.

Deep Learning Based Method for Early Warning of Price Risk in Railroad Bulk Freight Transport with Consideration of Time Series of Comprehensive Impact Index

The aim in this study is to enhance the price competitiveness of medium- and long-haul railroad bulk cargoes in the transportation market. Efficiently triggering an early warning for railroad bulk freight price risk is crucial. This paper discusses relevant factors affecting the pricing of railway freight from four aspects, namely the macroeconomy, the transportation market, the freight owner, and the railway enterprise. We construct a comprehensive index system for generating an early warning of railroad bulk freight prices. Utilizing a collected data set of 20 factor indicators that affected prices from 2015 to 2017, we calculate a comprehensive price risk warning index using the integrated entropy weight and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method. We propose a risk warning level classification method based on the k-means clustering method to determine five levels of price risk warning. Subsequently, we establish comprehensive index prediction methods for issuing price risk warnings based on the back propagation (BP) neural network and the deep learning long short-term memory (LSTM) network. We verify that the prediction performance of the deep learning LSTM network is significantly better than that of the BP neural network by combining all coal freight data from the Shanghai Railway Bureau for the period 2015 to 2017 as a case study. The proposed method can predict the level of freight price risk more accurately in the next phase, based on the status of the factor indicators, and be used to assist railway departments in developing a more reasonable freight price adjustment strategy to scientifically mitigate freight price risk.

Evaluation and optimization of pipeline pricing strategies on oil product logistics in China

In the early stage of pipeline network reform in China, it is still controversial to formulate an appropriate pipeline freight pricing strategy. Focusing on this issue, this paper puts forward an integrated framework to analyze the impact of different pipeline pricing strategies on the economic-environmental benefits of China’s oil product logistics. A basic mathematical programming model is developed to simulate the planning of nationwide oil product logistics at the tactical level. On this basis, five pipeline pricing strategies are customized for comparative analysis, including pricing as usual (PAU), pricing by benchmarking railway (PBR), pricing by discounting on excess (PDE), tiered pricing by mileage (TPM), and tiered pricing by volume (TPV). Then, the basic logistics optimization model is upgraded accordingly. The real-world case study in China in 2019 is carried out in detail and the results demonstrate that (i) Except for TPM, the other pricing strategies can achieve coordination between oil shippers and pipeline carriers compared with PAU; (ii) Ranked by economic performance as follows: PDE >PBT>TPV> PAU>TPM; (iii) As for PDE, it also helps to reduce carbon emissions by 0.5% annually. The proposed method can be a theoretical guide for oil and gas logistics managers and decision-makers within and beyond China.

The Impact of Carbon Tariffs on China’s Agricultural Trade

On 15 March 2022, the European Council reached an agreement on the relevant rules of the Carbon Border Adjustment Mechanism (CBAM). In order to study the impact of the implementation of carbon tariffs on China’s agricultural trade, this paper sets three control groups, namely, economic development, the impact of the “Belt and Road” initiative’s (BRI’s) trade facilitation level, and separate taxation by different countries, and uses the dynamic Global Trade Analysis Project—Environment (GTAP-E) model for policy simulation. The empirical results show that, firstly, carbon tariffs can suppress international demand for agricultural products and increase international market prices. At the same time, under the pressure of carbon tariffs, China will reduce the main agricultural product’s Free on Board (FOB) prices to ensure that their Cost, Insurance and Freight (CIF) prices can maintain a competitive advantage in the international market after increasing the cost of carbon tariffs, and the market share of China’s agricultural products exported to recipient countries will decline. Secondly, China’s “Belt and Road” initiative has a two-way impact on carbon tariff policy. On the one hand, it reduces the negative impact of carbon tariffs through trade facilitation, and on the other hand, it will decrease the effectiveness of carbon emission reduction because of the huge trade demand and encourage countries to develop green and low-carbon agriculture. Finally, there is heterogeneity in the impact of carbon tariffs imposed by the United States, Japan, and Europe on Chinese agricultural trade.

Lock Congestion Relief in a Multimodal Network With Public Subsidies and Competitive Carriers: A Two-Stage Game Model

Transshipment can be a detour for carriers to bypass congested locks. Therefore, the local government provides subsidies to carriers reluctant to adopt transshipment due to high costs. Using the Three Gorges Dam (TGD) as the subject, we address the interaction between the government and carriers and the rational routine choice for carriers when facing severe congestion. Specifically, we investigate pricing competition among carriers under different scenarios. A two-stage game model based on Evolutionary game theory and Bertrand game is used for the study. The results confirm that: (1) Subsidies for the road alternative can alleviate congestion in waterways transport before TGD; (2) Road transport is an efficient way to alleviate lock congestion, especially under emergency states; (3) Public subsidies for road transport support this change of modes at a reasonable price to shippers. Additionally, carriers with transshipment mode can provide more competitive freight prices and more convenient services to customers.

French Entries in the “Hamburgische Waarenberechnungen”: First Insights from a Collection of Commodity Calculations for Hamburg’s Trade in the Eighteenth Century

This paper analyses selected entries in the “Hamburgische Waarenberechnungen,” a collection of commodity calculations compiled, printed and published in Hamburg in 1772–1774, and comprising roughly 400 cost calculations for commodities shipped to and from the port of Hamburg. The paper focuses on the different cost items and their share in the total transportation cost for entries involving French ports. Following the structure of the commodity calculations, it distinguishes between costs incurred at origin, during shipment and upon arrival, while also paying attention to exchange and insurance rates as found in the source. By showing the complexity of the calculations, the paper contributes to the historiography of freight prices and transport costs in early modern Europe.

Spot Charter Rate Forecast for Liquefied Natural Gas Carriers

Recent maritime legislation demands the transformation of the transportation sector to greener and more energy efficient. Liquified natural gas (LNG) seems a promising alternative fuel solution that could replace the conventional fuel sources. Various studies have focused on the prediction of the LNG price; however, no previous work has been carried out on the forecast of the spot charter rate of LNG carrier ships, an important factor for the maritime industries and companies when it comes to decision-making. Therefore, this study is focused on the development of a machine learning pipeline to address the aforementioned problem by: (i) forming a dataset with variables relevant to LNG; (ii) identifying the variables that impact the freight price of LNG carrier; (iii) developing and evaluating regression models for short and mid-term forecast. The results showed that the general regression neural network presented a stable overall performance for forecasting periods of 2, 4 and 6 months ahead.

MARKETING OF NITROGENATED FERTILIZERS IN MATO GROSSO

Nitrogen fertilizers are generated from the manufacture of anhydrous ammonia (NH3), which involves the reaction of hydrogen with atmospheric nitrogen, and are used in energy sources such as natural gas, naphtha and asphalt waste. Among these hydrogen sources, natural gas is the most used and the most suitable, generating a greater concentration of nitrogen fertilizer producing units near petrochemical refineries. In Brazil, fertilizer production costs are considerably high due to logistical problems, represented by insufficient port infrastructure and freight prices, which increase the cost of imported raw material, consequently reflecting on the final price of fertilizers. Although the country shows high growth rates in the demand for fertilizers, the domestic production that provides its basic raw materials is not meeting its own demand. More than 80% of the fertilizers consumed in the country come from imports and domestic production accounts for less than 20% of the country’s demand. The state of Mato Grosso is the largest Brazilian agricultural hub with high rates of grain and fiber productivity, and areas available for growth. The researches carried out were descriptive, bibliographical and case study. Thus, the study aimed to analyze the behavior and price variation of nitrogen fertilizers, encompassing in a general way the national and world scenario with the state of Mato Grosso in recent years, and the difficulties encountered by the state and its future projections before the fertilizer market.

A Case Study Of Examining The Relationships Between Maritime Foreign Trade, GDP, And The Construction In Turkey

Although there are many types of transportation used in foreign trade, maritime transportation is great importance. In the globalizing world, the foreign trades between countries have started to become more common and maritime transport has become one of the main actors. Transportation demand increases in this area even more the fact that it is a cheaper, reliable and environmentally friendly. However, economic crises in the world and increases in sea freight prices can affect maritime transport. This situation can affect not only maritime transport but also the economic situation of countries. The aim of this study is to examine the relations between gross domestic product (GDP) and maritime exports, maritime imports and the construction sector (which is one of the most important economic dynamics of the country), due to the decline in maritime transport in Turkey in recent years. The data for the last years used in the research were obtained from the Turkish Statistical Institute (TSI). The stationarity levels of the data were analyzed with unit root statistics tests. Since all series are stationary at I(1) level, Granger causality method is preferred. As a result, GDP is the Granger cause of maritime exports, maritime imports and the construction industry but no correlation could be established between maritime imports with other data. Also, the construction industry is the Granger cause of maritime exports.

TURKEY S ROLE IN SILK ROAD ROUTES: ENERGY SUPPLY SECURITY OF EUROPEAN UNION AFTER UKRAINE – RUSSIAN WAR

Purpose- The aim of the research is to examine, analyze and provide insight into possible future projections of Turkey's role in the security of energy supply and the formation of new trade routes of the European Union (E.U.) after the Ukraine-Russia war within the scope of data obtained from experts. In addition, the current research has been understood that the EastMed project has reached a stalemate with Turkey's Exclusive Economic Zone (EEZ) agreement with Libya and has emerged due to the necessity of new solutions. In addition, turkey's strong position is mentioned, emphasizing that it is an important stakeholder in world politics and trade. Methodology- Since research requires expertise in a particular field, it is determined according to the purpose and scope of the research to be carried out with a specific focus group. The experts in the focus group were reached by the snowball sampling method. In this context, an in-depth interview technique from qualitative data analysis methods was carried out to a group of experts in international relations, international trade, and logistics departments. The research data were obtained from the faculty members and faculty members included in the group between 28.02.2022-09.03.2022 through Google Docs, and the analysis process was started. Findings- When the data obtained from the experts included in the research are examined, the perspective against the Tr-Med project, which is the recommendation of the research, is very positive. One reason is that the EastMed project is already known to be unsustainable, and in addition, the United States has withdrawn its support from the project. It can also be seen as the E.U.'s production of alternatives to existing energy supply processes in order to ensure energy supply security after the Ukraine-Russia war. In addition to the Tr-Med project, it is foreseen that the main routes of east-west-axis trade will shift to Turkey due to future sanctions against Russia. Conclusion- Turkey is foreseen to continue their union in the future because it is already a stakeholder of the E.U. in the TANAP project, has a partner in imports and exports, and is an actor who will play a role in the process of establishing relations with countries such as Iran, Israel, Egypt, Lebanon, Syria, and Qatar in the supply of energy supplies. However, the increase in freight prices in the post-COVID-19 period increased transportation costs, and in addition, the increase in raw material prices caused global inflation. With the Ukraine-Russia war, the price of crude oil at $130, experts say, will see $300 in oil in the future, which will make Turkey the E.U.'s manufacturing hub. Keywords: Energy security, pipeline, Eastern Mediterranean, naturel gas, Silk Road, one belt and one road ınitiative JEL Codes: F4, L8, N4

The COVID-19 Pandemics’ Impact on Customs Valuation and Import Duties: An Israel Perspective, and a Wider Comparison

In the past year, due to the Coronavirus disease 2019 (COVID-19), sea freight prices and domestic transportation costs have risen sharply, an increase that has not been seen for many years. This leads to a change in customs valuation. In most countries worldwide, collection of duties is based on the cost, insurance and freight (CIF) value of goods, there, any increase in transportation costs, lead to additional collection of import duties. The United States, Canada, Australia, New Zealand and South Africa, however, impose duties on the free on board (FOB) value of goods, meaning, therefore, transport costs changes do not lead to additional import duties in those countries. COVID-19 effects on transportation costs are a global issue and may last for a long time. Therefore, governments that impose customs on the CIF value, should consider waiving the COVID-19 extra shipping costs, for customs valuation purposes, until we are back to a ‘normal’ period. customs, valuation, transport, Incoterms, CIF, FOB, covid19, Israel

PRIORITIES FOR THE DEVELOPMENT OF MEDICINAL PLANT GROWING IN A POST-PANDEMIC ENVIRONMENT

The year 2020 was heavily influenced by the COVID-19 pandemic in all areas of human and social life. Today, it is difficult to imagine sectors of the economy that would not be affected by the pandemic, but the pharmaceutical industry and pharmaceutical companies are facing serious challenges. On the one hand, the pharmaceutical industry is forced to function in restrictions, like any other type of business in a pandemic, and on the other hand, it is forced to ensure uninterrupted production and supply of medicines, quickly increase their production, and strategically plan its activities in the post-pandemic world. All phases of pharmaceutical companies are affected by the pandemic, from the production and procurement of raw materials to research and development and doctor-patient interaction processes. The pharmaceutical industry, along with the health care system, has been at the epicenter of the global fight against the pandemic and its aftermath. In addition to new opportunities for the pharmaceutical industry in the fight against COVID-19, such as vaccine development and clinical trials of medical drugs to treat COVID-19, the pandemic has harmed the supply chain and production of herbal medicinal raw materials. The global pharmaceutical industry has faced the consequences of the closure of China’s customs borders for quarantine, as China is currently the leader in the production of medicinal pharmaceutical raw materials, accounting for about 40% of the world’s production of medicinal plant pharmaceutical raw materials. China has gained a leading position in the pharmaceutical raw materials industry due to its high production volume and low cost. Closed borders and quarantine-induced lockdown predetermined serious threats in the supply chain for the needs of pharmaceutical production, which was automatically reflected in rising logistics and freight prices. The presented study reviews the current state of the pharmaceutical herbal medicine industry and justifies the priorities of its development in post-pandemic conditions.

The Role of Sustainable Technological Innovations in the Relationship between Freight Pricing and Environmental Degradation: Evidence from a Panel of 39 R&D economies

This study is in line with the United Nations Framework Convention on Climate Change (UNFCCC) to evaluate the post-Paris Agreement (COP21) through technological innovations and carbon pricing in a panel of 39 R&D economies from 1995 to 2018. The results show that sustainable technological innovations and smart applications of insurance and financial services help decrease GHG emissions in the lowest to highest quantile distribution. In contrast, air transportation freight, air freight pricing, and foreign direct investment (FDI) inflows escalate GHG emissions due to unsustainable logistics activities, inefficient freight pricing, and dirty production, which confirmed the ‘pollution haven’ hypothesis across countries. The impact of air freight revenues has a differential impact on GHG emissions in the different quantiles’ distribution, as in the lowest quantiles (i.e., τ0.2 to τ0.4), air freight revenues increase GHG, whereas, at the highest quantiles’ distribution (i.e., τ0.9) emissions decrease. Thus, the viability of air freight revenues is further assessed using Panel Granger causality and panel innovation matrix. The results show the bidirectional causality between i) air freight pricing and GHG emissions, ii) air transportation freight (and freight pricing, freight revenues, FDI) and technology innovations, iii) FDI and air freight revenues, while there is a unidirectional causality running from i) insurance and financial services to GHG emissions, ii) GHG emissions to technological innovations and FDI inflows, and iii) air transportation freight to FDI inflows.