Authors : Todor Dimov Koritarov; Rostislav Dimitrov Dimitrakiev

Volume/Issue : Volume 10 - 2025, Issue 6 - June

Google Scholar : https://tinyurl.com/2wmptwhs

DOI : https://doi.org/10.38124/ijisrt/25jun133

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : This paper examines the post-2010 integration between international commodity markets and the maritime freight market, with a focus on crude oil, iron ore, and grain in the context of the European Union. Drawing on recent scholarly studies and industry reports, the authors summarize theoretical and empirical insights into how commodity price dynamics correlate with and influence freight rates in dry bulk and tanker markets. Methodologically, the reviewed works employ cointegration analysis, vector error-correction models, and other econometric tools to discern long-run relationships and short-run interactions. Key findings indicate that dry bulk freight rates generally move procyclically with bulk commodity prices, reflecting derived demand for shipping in periods of strong commodity trade. In contrast, tanker freight rates show a more complex (often countercyclical or lagged) relationship with crude oil prices. Among commodities, crude oil prices emerge as a leading indicator that transmits shocks across markets. Several factors – including global demand swings, fleet capacity cycles, fuel costs, and geopolitical disruptions – modulate the strength of commodity-freight linkages. The integrated behavior of these markets carries important implications for maritime stakeholders and policymakers: shipping companies and commodity traders benefit from monitoring cross-market signals for better forecasting and hedging, while regulators must consider the inflationary impact of freight cost surges on commodity prices. The paper concludes by highlighting avenues for future research, such as the evolving effects of decarbonization policies and supply-chain reconfigurations on commodity–freight market integration.

Keywords : Maritime Freight Market; International Commodity Markets; Freight Rates; Market Integration; Dry Bulk Shipping; Tanker Shipping.

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