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Parcel Size Distribution function
A 'parcel' is an individual consignment of cargo for shipment, for example 60,000 tonnes of grain that a trader has bought; 15,000 tonnes of raw sugar for a sugar refinery, 100 cases of wine for a wholesaler in the UK; or a consignment of auto parts. The list is endless. For a particular commodity trade, the PSD function describes the range of parcel sizes in which that commodity is transported. If, for example, we take the case of coal, individual shipments range in size from under 20,000 tons to over 160,000 tons, with clusters around 60,000 tons and a second cluster around 25,00 tons. There are hundreds of commodities shipped by sea and each has its own PSD function, the shape of which is determined by its economic characteristic.