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 | |
| 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.Funding
This work was supported in part by a Hong Kong Polytechnic University Niche Area Grant J-BB7A.