INSPIRING FUTURES

A time-varying risk premium in the term structure of bulk shipping freight rates.

Adland, Roar and Cullinane, Kevin (2005) A time-varying risk premium in the term structure of bulk shipping freight rates. Journal of Transport Economics and Policy, 39 (2). pp. 191-208. ISSN 0022-5258

[img] PDF
Restricted to Registered users only
Available under License Creative Commons Attribution Non-commercial.

Download (178kB) | Request a copy

    Abstract/Description

    This paper presents a simple argument, based on logic and maritime economic theory alone, for rejecting the applicability of the expectations theory in bulk shipping freight markets. It is shown that the risk premium must be time varying and must, in a systematic fashion, depend upon freight market conditions and the duration of a period time charter. The signs of the risk premium attributable to the various risk factors are derived where possible and the conclusion is drawn that the theoretical net risk premium will usually be negative, but may change for a short-term period charter in a strong freight market.

    Item Type: Article
    Print ISSN: 0022-5258
    Uncontrolled Keywords: maritime economic theory; bulk shipping freight markets;
    University Divisions/Research Centres: Edinburgh Napier University, Transport Research Institute
    Dewey Decimal Subjects: 300 Social sciences > 380 Commerce, communications & transportation > 387 Water, air & space transportation
    300 Social sciences > 330 Economics > 330 Economics
    Library of Congress Subjects: H Social Sciences > HB Economic Theory
    H Social Sciences > HE Transportation and Communications
    Item ID: 1877
    Depositing User: RAE Import
    Date Deposited: 28 May 2008 10:01
    Last Modified: 18 Apr 2013 13:34
    URI: http://researchrepository.napier.ac.uk/id/eprint/1877

    Actions (login required)

    View Item

    Document Downloads

    More statistics for this item...

    Edinburgh Napier University is a registered Scottish charity. Registration number SC018373