Comparisons of Volatility in the Dry-Cargo Ship Sector. Spot versus Time-Charters, and Smaller Versus Larger Vessels

Journal of Transport Economics and Policy, January 1996. Vol. XXX, No. 1,67-82

Posted: 18 Feb 2014

See all articles by Manolis G. Kavussanos

Manolis G. Kavussanos

Athens University of Economics and Business - Department of Accounting and Finance

Date Written: January 1, 1996

Abstract

This paper examines volatility as a measure of risk in the dry-bulk ship market. In particular, it compares volatility estimates between time-charter and spot rates. Volatility is also compared between different sizes of dry-bulk vessels. It is found that time-charters are more volatile than spot rates, and small vessels are less risky than larger ones when spot rates are used. The policy implications for ship owners who are risk-averse are to utilise the spot market in preference to time charters, and to invest in smaller vessels rather than large ones.

Suggested Citation

Kavussanos, Manolis G., Comparisons of Volatility in the Dry-Cargo Ship Sector. Spot versus Time-Charters, and Smaller Versus Larger Vessels (January 1, 1996). Journal of Transport Economics and Policy, January 1996. Vol. XXX, No. 1,67-82. Available at SSRN: https://ssrn.com/abstract=1435248

Manolis G. Kavussanos (Contact Author)

Athens University of Economics and Business - Department of Accounting and Finance ( email )

76 Patission St
TK 104 34 Athens
Greece
0030 210 8203167 (Phone)
0030 210 8228816 (Fax)

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