Assessing the Impacts of Maritime Freight Rates on Global Beef Trade

In this study, we examine the impact of container freight rates on global beef import demand by source. We address key questions about the effects of rising freight rates on major beef exporters such as Australia, the United States, and Brazil. Our estimates reveal varying global price and import demand effects, with significant declines in trade volume when freight rates double. The global import demand for beef from major exporters decreases by 7% (Ireland) to 27.6% (Uruguay), underscoring the critical role of transportation costs in shaping international beef trade. Countries like Argentina, Australia, Canada, New Zealand, and Uruguay experience more than a 20% decrease in global import demand with a doubling of freight rates. Interestingly, despite the proximity of the United States to major markets like China, Japan, and South Korea, beef imports from Brazil and Australia are more impacted by freight rates than U.S. beef.