This paper provides statistical evidence in support of the view, widely held in the tanker industry, that there are systematic differences in the degree of risk involved in investing in tankers of different sizes, and in operating tankers in spot and time charter markets. The industry view, broadly supported by the results of this paper, is that larger vessels are ‘risker’ assets than smaller vessels, and operating vessels in the time-charter market is less risky than employing them on a spot basis. The results are obtained by using a method derived from the financial economics literature, which models both the conditional mean and variance of a variable, known as GARCH modelling. Only one other paper has applied this method to the tanker market, and these results provide confirmatory support of those findings.
Conditional modelling of tanker market risk using route specific freight rates
Maritime Policy & Management ; 25 , 2 ; 117-128
1998-01-01
Article (Journal)
Electronic Resource
Unknown
Conditional modelling of tanker market risk using route specific freight rates
Online Contents | 1998
|Tanker freight rate modelling : a systems dynamics approach
TIBKAT | 2008
|Conditional Freight Trip Generation modelling
Online Contents | 2016
|Forecasting tanker freight rate using neural networks
Taylor & Francis Verlag | 1997
|