IDEAS home Printed from https://ideas.repec.org/a/ahs/journl/v2y2017i2p96-112.html
   My bibliography  Save this article

The Relationship Between Freight Revenues And Vessel Disposal Decisions

Author

Listed:
  • Abdullah AÇIK
  • Sadık Özlen BAŞER

Abstract

Ship demolition market helps to balance over supply in shipping market. Some factors accelerate and some factors slow down this process. Freight revenues are one of the most important factor that directly affect this process. Because even the old and obsolete ships can survive and carry out their operations profitably in buoyant market with high freight rates. In this context, this study aims to contribute existing literature by presenting an econometric analysis of the relationship between freight revenues and ship disposal decisions. Total tonnage sent to the demolition and Baltic Dry Index (BDI) variables are chosen, and annual data between 1985 and 2015 is used in the model. BDI is selected as a representative of freight revenues due to data constraint. Total tonnage sent to the scrapping is taken as a result of the decision to send ships to disposal. Correlation and regression analysis are conducted to determine the econometric relationship between variables. The results verifies the negative relationship between freight revenues and vessel disposal decisions.

Suggested Citation

  • Abdullah AÇIK & Sadık Özlen BAŞER, 2017. "The Relationship Between Freight Revenues And Vessel Disposal Decisions," Journal of Research in Economics, Politics & Finance, Ersan ERSOY, vol. 2(2), pages 96-112.
    • Handle: RePEc:ahs:journl:v:2:y:2017:i:2:p:96-112
    DOI: 10.30784/epfad.363721
    as

    Download full text from publisher

    File URL: http://static.dergipark.org.tr/article-download/8e88/44d1/d901/5a5475805ec7f.pdf?
    Download Restriction: no
    File URL: https://libkey.io/10.30784/epfad.363721?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lin, Faqin & Sim, Nicholas C.S., 2013. "Trade, income and the Baltic Dry Index," European Economic Review, Elsevier, vol. 59(C), pages 1-18.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wen-Xi Ruan & Xin Yu & Sheng-Yuan Wang & Tian-Cheng Zhao & Ya-Zhen Liu, 2022. "Exploration of China–ASEAN Trade Relations in the Context of Sustainable Economic Development—Based on the Lotka–Volterra Model," Sustainability, MDPI, vol. 15(1), pages 1-22, December.
    2. Evžen Kočenda & Karen Poghosyan, 2018. "Export Sophistication: A Dynamic Panel Data Approach," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(12), pages 2799-2814, September.
    3. Ngoc Thien Anh Pham & Nicholas Sim, 2020. "Shipping cost and development of the landlocked developing countries: Panel evidence from the common correlated effects approach," The World Economy, Wiley Blackwell, vol. 43(4), pages 892-920, April.
    4. Yan, Jiaqiang & Zhou, Yonghong, 2021. "Economic return to political support: Evidence from voting on the representation of China in the United Nations," Journal of Asian Economics, Elsevier, vol. 75(C).
    5. Lin, Faqin & Fu, Dahai, 2016. "Trade, Institution Quality and Income Inequality," World Development, Elsevier, vol. 77(C), pages 129-142.
    6. Lin, Faqin, 2015. "Learning by exporting effect in China revisited: An instrumental Approach," China Economic Review, Elsevier, vol. 36(C), pages 1-13.
    7. Cui Hu & Faqin Lin & Xiaosong Wang, 2016. "Learning from exporting in China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(2), pages 299-334, April.
    8. Lin, Youhong & Liu, Feng, 2020. "Indoor air quality and health: Empirical evidence from fluoride pollution in China," China Economic Review, Elsevier, vol. 63(C).
    9. Zhang, X. & Chen, M.Y. & Wang, M.G. & Ge, Y.E. & Stanley, H.E., 2019. "A novel hybrid approach to Baltic Dry Index forecasting based on a combined dynamic fluctuation network and artificial intelligence method," Applied Mathematics and Computation, Elsevier, vol. 361(C), pages 499-516.
    10. Lin, Faqin & Sim, Nicholas C.S., 2014. "Baltic Dry Index and the democratic window of opportunity," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 143-159.
    11. Evzen Kocenda & Karen Poghosyan, 2017. "Export sophistication: A dynamic panel data approach," Working Papers 980, Central Bank of the Republic of Armenia.
    12. Sèna Kimm Gnangnon & Shishir Priyadarshi, 2016. "Export Product Diversification, Services Production and Exports in Least Developed Countries," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-36, October.
    13. Yong Wang & Changyang Liu & Gaoyi Wang, 2020. "Geopolitical Risk Revealed in International Investment and World Trade," Risk Management, Palgrave Macmillan, vol. 22(2), pages 133-154, June.
    14. Lin, Faqin & Sim, Nicholas C.S., 2015. "Exports, HIV incidence and the Baltic Dry Index: Further evidence from sub-Saharan Africa," Economics Letters, Elsevier, vol. 126(C), pages 35-39.
    15. Evžen Kočenda & Karen Poghosyan, 2018. "Export Sophistication: A Dynamic Panel Data Approach," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(12), pages 2799-2814, September.
    16. Faqin Lin & Ermias O. Weldemicael & Xiaosong Wang, 2017. "Export sophistication increases income in sub-Saharan Africa: evidence from 1981–2000," Empirical Economics, Springer, vol. 52(4), pages 1627-1649, June.
    17. Cui Hu & Faqin Lin & Yong Tan & Yihong Tang, 2019. "How exporting firms respond to technical barriers to trade?," The World Economy, Wiley Blackwell, vol. 42(5), pages 1400-1426, May.
    18. Moyle, Brendan, 2014. "The raw and the carved: Shipping costs and ivory smuggling," Ecological Economics, Elsevier, vol. 107(C), pages 259-265.
    19. Silva, Thiago Christiano & Wilhelm, Paulo Victor Berri & Tabak, Benjamin Miranda, 2023. "Trade matters except to war neighbors: The international stock market reaction to 2022 Russia’s invasion of Ukraine," Research in International Business and Finance, Elsevier, vol. 65(C).
    20. Fotis Papailias & Dimitrios D. Thomakos & Jiadong Liu, 2017. "The Baltic Dry Index: cyclicalities, forecasting and hedging strategies," Empirical Economics, Springer, vol. 52(1), pages 255-282, February.

    More about this item

    Keywords

    BDI; freight revenues; demolition; business cycles;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ahs:journl:v:2:y:2017:i:2:p:96-112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ersan Ersoy (email available below). General contact details of provider: https://epfjournal.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.