The current historical highs of freight rates are largely driven by pandemic-induced shocks and

unexpected upward swings in shipping demand. Structural factors keep maritime transport costs higher
in developing regions.However, structural factors like port infrastructure, economies of scale, trade
imbalances, trade facilitation, and shipping connectivity all have a long-term impact on maritime
transport costs and trade competitiveness and drive shipping and port prices.A new UNCTAD-World
Bank transport costs dataset was used in the analysis, which found that significant structural changes
could cut maritime transport costs by about 4%.Therefore, cyclical factors and disruptions can be
mitigated by interventions and policies that address the structural determinants of maritime transport
costs.