Global Shipping Costs

According to the World Bank Global trade estimates, a one percent reduction in maritime and air transport services can account for as much as US$7. 98 billion (2004) dollars. If trade facilitation is considered in a broader sense, there are four categories to discuss port efficiency, customs environment, regulatory environment, and service sector infrastructure. The Shipping Act of 1998 reshaped the regulatory environment giving vessel operators the capability to use confidential rate agreements, which covers around 80 percent of the market, the remaining 20 percent has to shop for rates.