Research On The Correlation Between International Shipping Freight And China Ore Trade

China’s ore import and export trade volume climbed 118% from 2017 to 2021,from$127.195 billion to $272.613 billion.At the same time,nearly 95% of China’s international trade items are transported by shipping.Last year,China’s marine import and export volume was 3.46 billion tons.Ore is a kind of bulk products,which is also transported by shipping.Therefore,ore trading is inextricably tied to the worldwide shipping industry.In recent years,there has been an imbalance between supply and demand in the international shipping industry,and the associated market risks will damage ore trade and affect China’s supply chain.As a result,understanding the link between the international shipping cost and China’s ore import and export trade is critical for ensuring China’s foreign trade stability and promoting the smooth functioning of the industrial sector.First of all,this article outlines the study context and relevance of the chosen issue,describes the primary research content and methodologies,and highlights the main innovations.Secondly,introduce the theory of microeconomics,organizes and summarizes relevant domestic and international research,such as shipping freight rates and ore international trade,in order to provide a foundation for future research.Thirdly,by introducing the development of the international dry bulk shipping market and the current situation of China’s import and export trade,the fundamental challenges in the present dry bulk shipping market and China’s ore overseas trade are studied.Fourth,uses the equilibrium price and price effects theory to investigate the mechanism of interaction between China’s ore foreign trade and dry bulk shipping freight.Following that,a VAR model is built for empirical study,and the relationship between the dry bulk shipping freight and China’s ore international trade is addressed,yielding the following conclusions: the dry bulk shipping freight has a positive impact on China’s ore import in the short-term.As time goes by,it will change the positive impact into negative.And the dry bulk shipping freight has a positive and negative impact on China’s ore export volume.The freight rates of different routes have different degrees of influence.In the long run,China’s ore import and export has a small positive guiding effect on shipping freight rates.Dry bulk shipping freight is greatly disturbed by itself.Finally,according to the conclusion of empirical research,some suggestions are put forward to avoid market risks for foreign trade enterprises,shipping enterprises and manufacturing enterprises,such as reaching long-term shipping cooperation,expanding transnational shipping routes,increasing types of maritime futures,sharing maritime costs through cooperation and increasing types of shipping futures.