DOES QUALITY PAY? THE CASE OF THE DRY BULK MARKET

After important changes in the safety regulation of tankers, the dry bulk sector is coming under the spotlight from a safety and quality perspective. Nominal freight differentiation between 'quality' and 'other' tonnage has been observed occasionally and much lip service has been paid to promoting the need for newer and safer ships. Whether or not these signals actually manifest in a market initiative for the enhancement of the standards of the world bulk carrier fleet is debatable. This paper examines the possible existence of a 2-tier spot freight market for medium and large bulk carriers of differing age. Known voyage fixtures are investigated for 4 representative years since the 1980s, during which contrasting freight market conditions prevailed. In all but a few cases, there was no statistically significant difference between rates paid to older and newer tonnage; where such differences did exist, they never exceeded 10%.

  • Availability:
  • Corporate Authors:

    Elsevier

    The Boulevard, Langford Lane
    Kidlington, Oxford  United Kingdom  OX5 1GB
  • Authors:
    • Tamvakis, M N
    • Thanopoulou, H A
  • Publication Date: 2000-12

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00798802
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Sep 27 2000 12:00AM