Abstract
We explore the relationship between freight rates of Liquified Natural Gas (LNG) and Liquified Petroleum Gas (LPG) carrier freight rates, and the global geopolitical risk, while also controlling for the macro environment. Our results show that a shock in geopolitical risk significantly increases the cost of the spot charter rates for both the LNG and LPG carriers, with the impact reaching around 25% for the former and 18% for the latter. Our results bare significant implications for the companies and countries involved in the liquefied gas trade, as it is likely to continue substituting other fossil fuels in the future. As such, the significance of a stable energy source makes it highly correlated with the economic development and energy security in the importing countries.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
