The effect of oil prices on the US shipping stock prices: The mediating role of freight rates and economic indicators

Andreas Andrikopoulos, Anna Merika and Nikolaos Stoupos

Journal of Commodity Markets, 2025, vol. 38, issue C

Abstract: We explore the effect of oil prices on shipping stocks and freight rates, delivering evidence that the effect of oil prices on stock prices is mediated by the effect of oil prices on freight rates and, thereof, the effect of freight rates on the stocks of US-listed shipping companies. Our data set runs from 2018 to 2023, and our methodological arsenal includes error correction models, MIDAS and Granger causality. In this context, we discover that after the Covid19 pandemic and during the Russo-Ukrainian war the interactions between oil prices, freight rates and stock prices have been disrupted, turning the effect of freight rates on stock prices from non-causal to causal and the effects of oil prices on freight rates from negative to positive.

Keywords: Tanker freight rates; Oil prices; Shipping stock prices; MIDAS; ECM; Economic indicators (search for similar items in EconPapers)
JEL-codes: C50 L90 N70 Q40 R40 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jocoma:v:38:y:2025:i:c:s2405851325000182

DOI: 10.1016/j.jcomm.2025.100474

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