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Title
The impact of freight rates on ship values: An investigation of major dry bulk carriers

ISSN printed: 1733-8670, ISSN on-line: 2392-0378
Açik, Abdullah1
URI: https://repository.am.szczecin.pl/handle/123456789/2672
2021-06-30
Many factors affect ship values, but the most important is freight rates. This effect is more dynamic, especially in the dry bulk market, which has characteristics close to a perfectly competitive market. The literature does not provide a complete answer about whether the effects of freight on ship values differ by ship type and age in the market; therefore, this study examined the effect of changes in the freight rates of the main ship types used in the dry bulk market on their values in different age groups. The ship types included in the study are Capesize, Panamax, and Handymax vessels, while the age groups are newbuilds, 5-year-old, and 10-year-old ships. Individual regression models were established and analyses were applied for each category. According to the obtained results, smaller vessels were more affected by changes in freight rates, and the effect of changes in freight rate increased with the age of the ship. Also, the price volatility of smaller ships was lower, while it was higher for older ships. It is hoped that these results may provide comparative results by ship type and guide industry stakeholders in reducing risks.
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Title

The impact of freight rates on ship values: An investigation of major dry bulk carriers

Pages

Figures

3

Tables

7

ISSN printed

1733-8670

ISSN on-line

2392-0378

DOI

10.17402/464

Type

Original scientific article

Journal

66 Scientific Journals of the Maritime University of Szczecin, no. 66 / 2021

Publisher

Scientific Journals Maritime University of Szczecin, Zeszyty Naukowe Akademia Morska w Szczecinie

Copyright Holder

Scientific Journals Maritime University of Szczecin, Zeszyty Naukowe Akademia Morska w Szczecinie

Published

2021-06-30

Recieved

2020-10-24

Accepted

2021-05-26

Funding

No data

Keywords

freight rates, secondhand value, newbuilding value, economic life, Capesize, Panamax

URI:

https://repository.am.szczecin.pl/handle/123456789/2672

Language

English

Authors

Açik, Abdullah1

Affiliation

1 Dokuz Eylül University, Tınaztepe Campus, Maritime Faculty Adatepe Neighborhood, Doğuş St., No:207/O, Zip Code:35390, Buca, İzmir, Turkey, abdullah.acik@deu.edu.tr

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