The new “global”: the role of cargo maritime transport of goods with focus on the transportation corridor between Southeast Asia and Northwestern Europe

University of Economics in Bratislava, Faculty of Commerce, Department of International Trade, Dolnozemská cesta 1, 852 35 Bratislava 5, Slovak Republic

^* Corresponding author: marek.minarik@euba.sk

Abstract

Research background: Our research is framed by the new institutional theory reflected in: the property rights theory [1] and transfer of ownership of goods and the transaction costs theory that might be associated with economic exchange theory. Overall, we need to consider occurrence of deglobalization and the COVID-19 crisis, which recently not just decelerated growth of the world economy, but even put it to a halt; one might conclude that (de)globalization [2] and the COVID-19 crisis are behind the new “global” [3].

Purpose of the article: We investigate the impact of connectivity between selected countries by cargo maritime transport on costs to import of 1 TEU container transporting a specific commodity in a specific transportation corridor.

Methods: Our research is based on a regression analysis creating a model of UNCTAD statistics; the Liner shipping connectivity index (LSCI); and the WEF Global Competitiveness Index (GCI). We consider the Belt and Road Initiative (BRI) that converges with the global maritime transportation corridor between (Southeast) Asia/China – Northwestern Europe/EU (the North Sea Region) in this respect, bearing in mind the 2017 round of the International Comparison Program recently released by the World Bank.

Findings & Value added: Our research reveals correlation of the costs to import of 1 TEU container vis-à-vis the quality and intensity of liner shipping connections and the quality of the business environment determining the transaction costs in import price. Value added of the paper is our focus on sustainable development reinvigorated by prestigious international organisations and European Union institutions.