Contracting decisions in the crude oil transportation market: Evidence from fixtures matched with AIS data

Vít Prochazka, Roar Adland and François-Charles Wolff

Transportation Research Part A: Policy and Practice, 2019, vol. 130, issue C, 37-53

Abstract: In this paper, we investigate the contracting behaviour of participants in the spot freight market for tankers by analysing the positioning of vessels at the time of fixture. For that purpose, we create a new dataset obtained by merging spatial ship positions, commercial fixtures and technical vessel specifications. Using quantile and quantile fixed effect regressions, we show how market conditions, vessel characteristics and charterers’ preferences affect the fixture location. Our main result is that oil buyers secure tonnage earlier during strong tanker markets and that the geography of trade creates natural decision points that dominate in the spatial distribution of fixtures.

Keywords: International shipping; Spot market; AIS data; Oil transportation (search for similar items in EconPapers)
JEL-codes: Q41 R41 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0965856418311650
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Contracting decisions in the crude oil transportation market: Evidence from fixtures matched with AIS data (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transa:v:130:y:2019:i:c:p:37-53

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.tra.2019.09.009

Access Statistics for this article

Transportation Research Part A: Policy and Practice is currently edited by John (J.M.) Rose

More articles in Transportation Research Part A: Policy and Practice from Elsevier
Bibliographic data for series maintained by Catherine Liu ().