The Concept Of Freight Rates And Forecasting Strategy

Abstract

Over the years, the issue of freight rates has been a thorn in the flesh for most cargo owners in regard to its calculations and modalities of its arrival concept for each cargo, by vessel owners. This paper reviews the nature, constituents and concepts of freight rates and forecasting strategy as it concerns each cargo calculation as against freight destinations. These problem have been subjected to what actually constitutes components of freight rates for each cargo in consideration to route analysis and voyage distance for the particular vessel voyage destinations. No doubt, forecasting of freight rates manifests the characteristics of planning principles, which has to do with the act of periscoping into the past and present variables, as a benchmark for possible future decisions, which must be based on some possible futuristic postulations and estimations. It is expected therefore that, the empirical justification of forecasting principles must be anchored on the principles of freight rates. No doubt, the relevance of forecasting of freight rates should be based on the principles of planning which usually X-rays the past variables, present variables and uses such postulations to investigate the extrapolations of future freight rates for upward movement of cargoes from one end of the port to another, no matter the distance of the global frontiers involved. Therefore, efforts will be made in this study to assess the significance of some principles of forecasting in future calculations and postulations of freight rates. In summary, therefore, the focus of this paper is basically to help all maritime students at freight rates, constituents and forecasting strategy, modalities of its calculations and postulation concept at the end of the day.


Journal of Research in National Development Vol. 4 (1) 2006: pp. 8-25