Lead-lag relationship between new-building and second-hand ship prices

Ying KOU; Liming LIU; Meifeng LUO

doi:10.1080/03088839.2013.821209

Lead-lag relationship between new-building and second-hand ship prices

Ying KOU, Liming LIU, Meifeng LUO

Department of Computing and Decision Sciences

Research output: Journal Publications › Journal Article (refereed) › peer-review

16 Citations (Scopus)

Abstract

We examine lead-lag relationships between new-building and second-hand ship prices. Our analysis shows the existence of a one-directional lead-lag relationship between two ship prices. The direction of lead-lag relationship is not affected by the time evolution and age of second-hand ships, but is affected by the division of shipping sector. Particularly, directions of ship price movements in dry bulk and tanker shipping sectors are opposite. We argue that the opposite directional lead-lag relationships are caused by the difference in competition levels and the difference in the purposes of trading in the two shipping sectors.

Original language	English
Pages (from-to)	303-327
Number of pages	25
Journal	Maritime Policy and Management: The flagship journal of international shipping and port research
Volume	41
Issue number	4
Early online date	2 Aug 2013
DOIs	https://doi.org/10.1080/03088839.2013.821209
Publication status	Published - 2014

Bibliographical note

The authors appreciate the comments they received when the preliminary results were presented in the 2010 Annual Conference of the International Association of Maritime Economists. We thank the Editor and Referees for their constructive comments and suggestions which helped improve this manuscript substantially in both content and organization.

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10.1080/03088839.2013.821209

Cite this

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abstract = "We examine lead-lag relationships between new-building and second-hand ship prices. Our analysis shows the existence of a one-directional lead-lag relationship between two ship prices. The direction of lead-lag relationship is not affected by the time evolution and age of second-hand ships, but is affected by the division of shipping sector. Particularly, directions of ship price movements in dry bulk and tanker shipping sectors are opposite. We argue that the opposite directional lead-lag relationships are caused by the difference in competition levels and the difference in the purposes of trading in the two shipping sectors.",

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AB - We examine lead-lag relationships between new-building and second-hand ship prices. Our analysis shows the existence of a one-directional lead-lag relationship between two ship prices. The direction of lead-lag relationship is not affected by the time evolution and age of second-hand ships, but is affected by the division of shipping sector. Particularly, directions of ship price movements in dry bulk and tanker shipping sectors are opposite. We argue that the opposite directional lead-lag relationships are caused by the difference in competition levels and the difference in the purposes of trading in the two shipping sectors.

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Lead-lag relationship between new-building and second-hand ship prices

Abstract

Bibliographical note

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