What makes a freight market index? An empirical analysis of vessel fixtures in the offshore market

Roar Adland, Pierre Cariou () and François-Charles Wolff
Additional contact information
Roar Adland: NHH - Norwegian School of Economics and Business Administration, Department of Economics - Norwegian School of Economics and Business Administration
Pierre Cariou: Kedge Business School [Talence]

Working Papers from HAL

Abstract: We estimate a hedonic pricing regression to generate a market index from heterogeneous fixture data in the Offshore Support Vessel (OSV) market. We consider a fixed effect framework where we control for vessel characteristics and contract-specific variables. Applied to a dataset of more than 30,000 transactions from 1989 to 2015, estimates show that around 70%-80% of variation in dayrates is explained by the time fixed effects used to estimate the market index. Spot freight rates increase with engine power and transport capacity. The volatile market index is seasonal and is positively correlated to both oil prices and production volumes.

Keywords: offshore support vessel; spot freight rate; hedonic price regressions; fixture data (search for similar items in EconPapers)
Date: 2017-04-25
New Economics Papers: this item is included in nep-tre
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01513364
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://shs.hal.science/halshs-01513364/document (application/pdf)

Related works:
Journal Article: What makes a freight market index? An empirical analysis of vessel fixtures in the offshore market (2017)
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:hal:wpaper:halshs-01513364

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().