Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Influencing factors of crude oil maritime shipping freight fluctuations: a case of Suezmax tankers in Europe–Africa routes

Influencing factors of crude oil maritime shipping freight fluctuations: a case of Suezmax... The paper aims to identify the contributors to freight rate fluctuations in the Suezmax tanker market; this study selected the refinery output, crude oil price, one-year charter rate and fleet development as the main influencing factors for the market analysis.Design/methodology/approachThe paper used the vector error correction model to evaluate the degree of impact of each influencing factor on Suezmax tanker freight rates, as well as the interplay between these factors.FindingsThe conclusion and results were tested using the 20-year data from 1999 to 2019, and the methodology and theory of this paper were proved to be effective. Results of this study provide effective reference for scholars to find the law of fluctuations in Suezmax tanker freight rates.Originality/valueThis paper provides a decision-making support tool for tanker operators to cope with fluctuation risks in the tanker shipping market. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Maritime Business Review Emerald Publishing

Influencing factors of crude oil maritime shipping freight fluctuations: a case of Suezmax tankers in Europe–Africa routes

Download PDF
17 pages

Loading next page...
 
/lp/emerald-publishing/influencing-factors-of-crude-oil-maritime-shipping-freight-yBxAid1Dyf
Publisher
Emerald Publishing
Copyright
© Pacific Star Group Education Foundation
ISSN
2397-3757
DOI
10.1108/mabr-04-2021-0033
Publisher site
See Article on Publisher Site

Abstract

The paper aims to identify the contributors to freight rate fluctuations in the Suezmax tanker market; this study selected the refinery output, crude oil price, one-year charter rate and fleet development as the main influencing factors for the market analysis.Design/methodology/approachThe paper used the vector error correction model to evaluate the degree of impact of each influencing factor on Suezmax tanker freight rates, as well as the interplay between these factors.FindingsThe conclusion and results were tested using the 20-year data from 1999 to 2019, and the methodology and theory of this paper were proved to be effective. Results of this study provide effective reference for scholars to find the law of fluctuations in Suezmax tanker freight rates.Originality/valueThis paper provides a decision-making support tool for tanker operators to cope with fluctuation risks in the tanker shipping market.

Journal

Maritime Business Review – Emerald Publishing

Published: Mar 7, 2023

Keywords: Crude oil; VECM; Suezmax; Impulse response; Variance decomposition

References

  • On reconciling macro and micro energy transport forecasts for strategic decision making in the tanker industry
    Abouarghoub, W.; Nomikos, N.K.; Petropoulos, F.
  • The influence of charterers and owners on bulk shipping freight rates
    Adland, R.; Cariou, P.; Wolff, F.-C.
  • Cost of carry, causality and arbitrage between oil futures and tanker freight markets
    Alizadeh, A.H.; Nomikos, N.K.
  • A regime switching approach for hedging tanker shipping freight rates
    Alizadeh, A.H.; Huang, C.-Y.; Van Dellen, S.
  • Freight rate co-movement and risk spillovers in the product tanker shipping market: a copula analysis
    Bai, X.; Lam, J.S.L.
  • Multifractal cross-correlations between crude oil and tanker freight rate
    Chen, F.; Miao, Y.; Tian, K.; Ding, X.; Li, T.
  • Periodicity of world crude oil maritime transportation: case analysis of Aframax Tanker market
    Chen, J.; Xue, K.; Song, L.; Luo, J.X.; Mei, Y.; Huang, X.; Zhang, D.; Hua, C.
  • The volatility transmission between crude oil market and tanker freight market
    Dai, L.; Hu, H.; Tao, Y.; Lee, S.
  • Likelihood ratio statistics for autoregressive time series with a unit root
    Dickey, D.A.; Fuller, W.A.
  • Co-integration and error correction: representation, estimation, and testing
    Engle, R.F.; Granger, C.W.
  • Crude oil maritime transportation: market fluctuation characteristics and the impact of critical events
    Fei, Y.; Chen, J.; Wan, Z.; Shu, Y.; Xu, L.; Li, H.; Bai, Y.; Zheng, T.
  • Volatility forecasting across tanker freight rates: the role of oil price shocks
    Gavriilidis, K.; Kambouroudis, D.S.; Tsakou, K.; Tsouknidis, D.A.
  • Developments in the study of cointegrated economic variables
    Granger, C.J.
  • Statistical analysis of cointegration vectors
    Johansen, S.
  • Market interactions in returns and volatilities between spot and forward shipping freight markets
    Kavussanos, M.G.; Visvikis, I.D.
  • Analysing business models of liner shipping companies
    Lam, J.S.L.; Wong, H.N.
  • The dynamic relationship between tanker freight rates and crude oil production: evidence from causality analysis
    Lauenstein, P.
  • Insights from multifractality analysis of tanker freight market volatility with common external factor of crude oil price
    Li, T.; Xue, L.; Chen, Y.; Chen, F.; Miao, Y.; Shao, X.; Zhang, C.
  • An empirical model of the bulk shipping market
    Lun, Y.V.; Quaddus, M.A.
  • Interactions between economic growth and environmental quality: panel and non-panel analyses
    Ong, S.M.; Sek, S.K.
  • The eye in the sky–Freight rate effects of tanker supply
    Regli, F.; Nomikos, N.K.
  • Cross-correlations between Baltic Dry Index and crude oil prices
    Ruan, Q.; Wang, Y.; Lu, X.; Qin, J.
  • Estimating the dimension of a model
    Schwarz, G.
  • Selection of the order of an autoregressive model by Akaike's information criterion
    Shibata, R.
  • Dynamic volatility spillovers across shipping freight markets
    Tsouknidis, D.A.
  • Research on supply-demand relationship of world crude tanker transportation
    Wu, J.; Yang, Q.; Wang, B.
  • The dynamics between freight volatility and fleet size growth in dry bulk shipping markets
    Xu, J.J.; Yip, T.L.; Marlow, P.B.
  • A study of the relationships between the time charter and spot freight rates
    Zhang, H.; Zeng, Q.
  • Multifractal analysis of spot rates in tanker markets and their comparisons with crude oil markets
    Zheng, S.; Lan, X.