Spatial efficiency in the bulk freight market

Given that the freight rate is the price of a transportation service that cannot be traded or stored; the traditional form of the efficient market hypothesis (EMH) does not apply to the freight rate price process. However, the notion of market efficiency still applies in the freight market. In particular, under the hypothesis that the market is semi-strong-form efficient, it should not be possible to make excess profit by taking chartering positions in the freight market based on public information such as past levels of the spot freight rate or the shape of the term structure of freight rates. This paper contributes to the literature by proposing an alternative test of market efficiency in the bulk freight market. We utilize technical analysis based on the history of spot freight rates and investigate the profitability of such chartering strategies for a tanker operator. The chartering decisions are based on identification of the peaks and troughs in the freight market cycles using kernel smoothing of the spot freight rate history. The empirical results suggest that a large tanker operator (e.g. a pool) could have achieved significant profits without investing in ships by trading on such information, although this does not hold in the most recent subset of the sample.

Shipping Industry along with relevant freight markets are characterized by extreme volatility. For this reason, hedging tools might be vital for companies involved and their business activities. The Forward Freight Agreements are financial forward contracts that can be used as hedging or speculation tools for principals involved in ship chartering and commodity trading, such as shipowners and charterers. However, given the fact that freight rates regulate the industry, companies invest in market analysis in order to estimate future freight market activity. In addition, relevant analysis has attracted the interest of several researchers, who have also attempted to study the relation of the FFAs with the Spot Freight Rates. The present thesis deals with the interaction of Forward Freight Agreements with the Spot Freight Rates for five sea routes of Panamax dry cargo vessels. We study whether FFAs prices with specific maturity can be used as unbiased estimators of spot prices in short term period. The study is based in some tools of econometrics and data series analysis and the methodology is based on the published study of Professor, Mr. E. Kavussanos in 2004 with similar hypothesis. Considering the final results, there is a strong evidence that FFAs prices can be used as unbiased estimators for Spot Prices. However, the opposite relationship cannot be ascertained.

A time charter contract is a shipping contract that allows for freight rate risk avoidance and hedging. Defining the relationship between time charter and spot freight rates will illuminate the fluctuation mechanism of the spot freight market. In this article, three types of dry bulk ships – Capsize, Panamax and Supramax – are chosen to investigate the relationship between time charter and spot freight rates and to analyse the price discovery function of time charter contracts. A vector error correction model is developed, and an impulse response function is used to analyse the influence of time charter rates on spot freight rates. Empirical studies indicate that there are two-way lead–lag relationships between the time charter and spot freight rates and that a time charter contract has a price discovery function. Smaller ship sizes and longer durations lead to a stronger price discovery function.

Oil and Energy TrendsVolume 42, Issue 9 p. 46-47 Tables Tanker Chartering and Freight Rates First published: 25 September 2017 https://doi.org/10.1111/oet.11_12412Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat No abstract is available for this article. Supporting Information Filename Description oet11_12412-sup-0001-Table20-23.xlsapplication/excel, 82.5 KB Tables 20–23: Spot (Dirty) Tanker Fixtures and Freight Rates, Tanker Time Charters, Spot Freight Rates by Tanker Size and Spot (Dirty) Freight Rates by Hauls Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article. Volume42, Issue9September 2017Pages 46-47 RelatedInformation

Oil and Energy TrendsVolume 42, Issue 12 p. 46-47 Tables Tanker Chartering and Freight Rates First published: 28 December 2017 https://doi.org/10.1111/oet.11_12418Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat No abstract is available for this article. Supporting Information Filename Description oet11_12418-sup-0001-Table20-23.xlsapplication/excel, 81 KB Tables 20–23: Spot (Dirty) Tanker Fixtures and Freight Rates, Tanker Time Charters, Spot Freight Rates by Tanker Size and Spot (Dirty) Freight Rates by Hauls Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article. Volume42, Issue12December 2017Pages 46-47 RelatedInformation

Oil and Energy TrendsVolume 39, Issue 11 p. 56-57 Tables Tanker Chartering and Freight Rates First published: 25 November 2014 https://doi.org/10.1111/oet.12199_11Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat No abstract is available for this article. Supporting Information Filename Description oet12199_11-sup-0001-Table20-23.xlsapplication/excel, 86.5 KB Tables 20–23: Spot (Dirty) Tanker Fixtures and Freight Rates, Tanker Time Charters, Spot Freight Rates by Tanker Size and Spot (Dirty) Freight Rates by Hauls Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article. Volume39, Issue11November 2014Pages 56-57 RelatedInformation

Oil and Energy TrendsVolume 40, Issue 10 p. 50-51 Tables Tanker Chartering and Freight Rates First published: 21 October 2015 https://doi.org/10.1111/oet.11_12319Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat No abstract is available for this article. Supporting Information Filename Description oet11_12319-sup-0001-Table20-23.xlsapplication/excel, 85 KB Tables 20–23: Spot (Dirty) Tanker Fixtures and Freight Rates, Tanker Time Charters, Spot Freight Rates by Tanker Size and Spot (Dirty) Freight Rates by Hauls Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article. Volume40, Issue10October 2015Pages 50-51 RelatedInformation

Oil and Energy TrendsVolume 39, Issue 5 p. 55-56 Tables Tanker Chartering and Freight Rates First published: 27 May 2014 https://doi.org/10.1111/oet.12153_11Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat No abstract is available for this article. Supporting Information Filename Description oet12153_11-sup-0001-Table20-23.xlsapplication/excel, 87 KB Tables 20–23: Spot (Dirty) Tanker Fixtures and Freight Rates, Tanker Time Charters, Spot Freight Rates by Tanker Size and Spot (Dirty) Freight Rates by Hauls Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article. Volume39, Issue5May 2014Pages 55-56 RelatedInformation

Oil and Energy TrendsVolume 40, Issue 1 p. 50-51 Tables Tanker Chartering and Freight Rates First published: 21 January 2015 https://doi.org/10.1111/oet.12214_11Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat No abstract is available for this article. Supporting Information Filename Description oet12214_11-sup-0001-Table20-23.xlsapplication/excel, 83 KB Tables 20–23: Spot (Dirty) Tanker Fixtures and Freight Rates, Tanker Time Charters, Spot Freight Rates by Tanker Size and Spot (Dirty) Freight Rates by Hauls Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article. Volume40, Issue1January 2015Pages 50-51 RelatedInformation

Oil and Energy TrendsVolume 40, Issue 7 p. 50-51 Tables Tanker Chartering and Freight Rates First published: 27 July 2015 https://doi.org/10.1111/oet.11_12260Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat No abstract is available for this article. Supporting Information Filename Description oet11_12260-sup-0001-Table20-23.xlsapplication/excel, 86 KB Tables 20–23: Spot (Dirty) Tanker Fixtures and Freight Rates, Tanker Time Charters, Spot Freight Rates by Tanker Size and Spot (Dirty) Freight Rates by Hauls Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article. Volume40, Issue7July 2015Pages 50-51 RelatedInformation

Oil and Energy TrendsVolume 38, Issue 7 p. 50-51 Tables Tanker Chartering and Freight Rates First published: 22 July 2013 https://doi.org/10.1111/oet.12076_11Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat No abstract is available for this article. Supporting Information Filename Description oet12076_11-sup-0001-Table20-23.xlsapplication/excel, 82 KB Tables 20–23: Spot (Dirty) Tanker Fixtures and Freight Rates, Tanker Time Charters, Spot Freight Rates by Tanker Size and Spot (Dirty) Freight Rates by Hauls Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article. Volume38, Issue7July 2013Pages 50-51 RelatedInformation

Oil and Energy TrendsVolume 37, Issue 11 p. 55-56 Tables Tanker Chartering and Freight Rates First published: 26 December 2012 https://doi.org/10.1111/oet.12022_11Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat No abstract is available for this article. Supporting Information Filename Description oet_12022_11-sup-0001-Table20-23.xlsapplication/excel, 92.5 KB Tables 20–23: Spot (Dirty) Tanker Fixtures and Freight Rates, Tanker Time Charters, Spot Freight Rates by Tanker Size and Spot (Dirty) Freight Rates by Hauls Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article. Volume37, Issue11November 2012Pages 55-56 RelatedInformation

Oil and Energy TrendsVolume 37, Issue 10 p. 50-51 Tables Tanker Chartering and Freight Rates First published: 18 December 2012 https://doi.org/10.1111/oet.12014_11Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat No abstract is available for this article. Supporting Information Filename Description oet_12014_11-sup-0001-Table20-23.xlsapplication/excel, 77.5 KB Tables 20–23: Spot (Dirty) Tanker Fixtures and Freight Rates, Tanker Time Charters, Spot Freight Rates by Tanker Size and Spot (Dirty) Freight Rates by Hauls Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article. Volume37, Issue10October 2012Pages 50-51 RelatedInformation

Oil and Energy TrendsVolume 41, Issue 9 p. 48-49 Tables Tanker Chartering and Freight Rates First published: 22 September 2016 https://doi.org/10.1111/oet.11_12301Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat No abstract is available for this article. Supporting Information Filename Description oet11_12301-sup-0001-Table20-23.xlsapplication/excel, 85.5 KB Tables 20–23: Spot (Dirty) Tanker Fixtures and Freight Rates, Tanker Time Charters, Spot Freight Rates by Tanker Size and Spot (Dirty) Freight Rates by Hauls Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article. Volume41, Issue9September 2016Pages 48-49 RelatedInformation

Oil and Energy TrendsVolume 41, Issue 4 p. 50-51 Tables Tanker Chartering and Freight Rates First published: 27 April 2016 https://doi.org/10.1111/oet.11_12286Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat No abstract is available for this article. Supporting Information Filename Description oet11_12286-sup-0001-Table20-23.xlsapplication/excel, 84 KB Tables 20–23: Spot (Dirty) Tanker Fixtures and Freight Rates, Tanker Time Charters, Spot Freight Rates by Tanker Size and Spot (Dirty) Freight Rates by Hauls Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article. Volume41, Issue4April 2016Pages 50-51 RelatedInformation