MARKET FUNDAMENTALS, MARKET SENTIMENT AND SECOND-HAND SHIP PRICES

While changes in freight rates are usually taken to indicate short-run adjustments in the shipping industry and market, changes in second-hand ship prices are often taken to indicate longer term changes in market conditions and future trading opportunities. This paper addresses the issue of the particular roles of market fundamentals and market sentiment in determining second-hand ship prices. The author tests his hypotheses using data on second-hand ship prices from the dry bulk carrier structure. The author begins with a discussion of the possible ways in which market fundamentals and market sentiment might influence the market for second-hand ships; cointegration analysis is used to test for the expected long-run relationships. Short-run tests are then applied to check the causality between the variables. The results lend support to the market fundamentals hypothesis, but the author stresses that it may be premature to conclude that market sentiment plays no part in the determination of second-hand ship prices.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/03918440
• Corporate Authors:

  Instituti Editoriali e Poligrafici Internazionali

  Via Giosue Carducci 60, Ghezzano
  La Fontina,   Italy  56010
• Authors:
  • Wright, G
• Publication Date: 2005-2

Language

• English

Media Info

• Features: References; Tables;
• Pagination: p. 93-101
• Serial:
  • International Journal of Transport Economics = Rivista Internazionale de Economia dei Trasporti
  • Volume: 32
  • Issue Number: 1
  • Publisher: Fabrizio Serra
  • ISSN: 0391-8440
  • EISSN: 1724-2185

Subject/Index Terms

• TRT Terms: Bulk carriers; Economics; General cargo ships; Market assessment; Prices; Purchasing
• Uncontrolled Terms: Market sentiment; Second-hand ships
• Subject Areas: Economics; Freight Transportation; Marine Transportation; Operations and Traffic Management;

Filing Info

• Accession Number: 00988976
• Record Type: Publication
• Files: TRIS
• Created Date: Apr 18 2005 12:00AM