SPOT AND PERIOD RATES IN THE DRY BULK MARKET

There has been little empirical work on the relationship between spot charter rates and period rates. One possible explanation of their relationship, the expectations hypothesis, would assert that period rates must be equal to some suitable average of expected future spot rates. This paper uses this hypothesis to derive an explicit model of the relationship between spot and period charter rates for the dry-bulk market. It then applies some tests of the hypothesis to data for the period 1980-1986. The results provide little or no support for the expectations hypothesis, but find that a satisfactory explanation for its failure is elusive.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/856156
• Supplemental Notes:
  • Journal article
• Authors:
  • Hale, C
  • Vanags, A
• Publication Date: 1989-9

Media Info

• Features: References;
• Pagination: 11 p.
• Serial:
  • Journal of Transport Economics and Policy
  • Volume: 23
  • Issue Number: No.3
  • Publisher: University of Bath
  • ISSN: 0022-5258
  • Serial URL: http://www.jtep.com

Subject/Index Terms

• TRT Terms: Charter rates; Dry bulk carriers; Hypothesis testing; Time duration
• Uncontrolled Terms: Hypothesis; Long term; Relationships
• Old TRIS Terms: Expectations hypothesis; Short range (Time)
• Subject Areas: Data and Information Technology; Marine Transportation;

Filing Info

• Accession Number: 00658647
• Record Type: Publication
• Source Agency: Maritime Technical Information Facility
• Files: TRIS
• Created Date: Jul 21 1994 12:00AM