Factors behind the Freight Rates in the Liner Shipping Industry

Nikola Kutin (), Zakaria Moussa and Thomas Vallee
Additional contact information
Nikola Kutin: LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes, National University of Management

Working Papers from HAL

Abstract: This paper analyses the relationship between the China Containerized Freight Index (CCFI), Containership Earnings, Fleet Development, bunker price and Global Economic Activity. The Markov-switching Vector Autoregressive model has been applied by assuming the existence of two regimes. The first one is characterized by low and volatile freight rates, while the second one is more stable with high earnings and high freight rates. Three major cycles in the liner shipping industry have been identified. Moreover, by applying the Impulse Reponses Function, we have estimated the reaction of the freight rates following an increase of 1% of the other variables in the model.

Keywords: Freight rates; Container trade; Shipping; Vector Autoregressive Model (search for similar items in EconPapers)
Date: 2018-07-03
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-01828633
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://shs.hal.science/halshs-01828633/document (application/pdf)

Related works:
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-01828633

Access Statistics for this paper

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