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Trans. Planning Journal
| Title | An Empirical Study on the Relationship Between Hire Rate and Ship Price Volatility of Capesize Bulk Carriers |
|---|---|
| Author | Yi-Chih Yang , Chih-Min Wang |
| Summary | Strong infrastructure construction development in China has resulted in an increasing demand for sea transportation, especially the market for Capesize bulk carriers that transport iron ore has boosted recently. To examine the interactive relationships between the hire rate and ship price of Capesize bulk carriers as well as the price variances of newbuild ships and second-hand ships, we adopted the Vector Auto Regression, impulse response analysis and variance decomposition approaches. The findings of this study show that there is no significant relationship between the newbuild ship price and the hire rate of Capesize bulk carriers. The 5-year second-hand ship price impulse responds to the hire rate in short term and to newbuild ship price in long term. Moreover, the price variance of newbuild ships can only be well explained by their own past variance, and the 5-year second-hand ship price can be well explained by the past variance of the hire rate in short term, however, the strength of effect disappears very soon, and its long-term variance is also partially impacted by newbuild ship price. |
| Vol. | 35 |
| No. | 4 |
| Page | 415 |
| Year | 2006 |
| Month | 12 |
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