Comparisons of Volatility in the Dry Cargo Freight Market Ship Sector

Comparisons of Volatility in the Dry Cargo Freight Market Ship Sector

This paper compares volatility estimates between time-charter and spot rates between different sizes of dry bulk vessels. Time-charters are more volatile than spot rates, and small vessels are less risky than larger ones when spot rates are used. Ship owners who are risk averse should utilise the spot market in preference to time-charters, and invest in smaller vessels.

Share Content

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn

Related Articles

Optimal Public transport Price and Service Frequency

Because values of time and passenger behaviour depend on the level of frequency it is found that: (1) in urban public transport there may be one low-deficit local optimum and one high-deficit local optimum, one of which is global; (2) contrary to what might be expected, optimal financial deficit per passenger is typically larger for high frequency services than for low-frequency services; (3) the optimal off-peak may exceed the optimal peak price.

View Journal »