Is there potential for a two-tier tanker market?

Maritime Policy and Management

Volumn 26, Issue 3, 1999, Pages 249-264

  Strandenes, Siri Pettersen ^a  

^a NORWEGIAN SCHOOL OF ECONOMICS   (Norway)

Author keywords

[No Author keywords available]

Indexed keywords

FREIGHT TRANSPORT; SHIPPING; TANKER SHIP;

EID: 0032854087     PISSN: 03088839     EISSN: 14645254     Source Type: Journal    
DOI: 10.1080/030888399286871     Document Type: Article

References (37)

1. This paper was written when the author was visiting the Institut für Finanzwissenschaft, Humboldt Universität zu Berlin
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3. Tamvakis, M. N., 1995. An investigation into the existence of a two-tier spot freight market for crude oil tankers. Maritime Management and Policy, 22(1):81–90.
4. We saw two-tier freight rates for some weeks in December 1994 when shipowners started to comply with Certificate of Financial Responsibility (COFR) requirements. This further underlines the arguments in the paper
5. Hawdon, D., 1978. Tanker freight rates in the short and long run. Applied Economics, 10:203–217.
6. Strandenes, S. P., 1986. Norship. A Simulation Model of Markets in Bulk Shipping, Discussion paper 11 Bergen:Norwegian School of Economics and Business Administration.
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8. Beenstock, M., and Vergottis, A., 1993. Econometric Modelling of World Shipping, London:Chapmann & Hall.
9. Strandenes, S. P., 1981. “Demand Substitution between Tankers of Different Sizes”. In Studies in Shipping Economics, Edited by:Hope, E., 63–77. Oslo:Bedriftsøkonomens Forlag. In honour of professor Arnljot Strømme Svendsen
10. Strandenes, S. P., 1990. “Capacity utilisation in shipbuilding and shipping”. In Shipping Strategies and bulk shipping in the 1990s, Edited by:Pettersen Strandenes, S., Strømmé Svendsen, A., and Wergeland, T., 49–63. Bergen:Institute for Shipping Research, Norwegian School of Economics and Business Administration.
11. Mathiesen, L., and Strandenes, S. P., 1990. Utsikter for internasjonal bulkskipsfart i 1990 årene, Rapport 37/90 Bergen:Senter for anvendt forskning, Norges Handelshøyskole.
12. SIS-IV Gruppen, Fuglseth, A. M., and Strandenes, S. P., 1992. Miljøkrav og bulkskipsfart. Analyser ved bruk av NORSHIP, Working Paper N0 40/1992 Bergen:Centre for Research in Economics and Business Administration.
13. Beenstock, M., and Vergottis, A. R., 1989a. An econometric model of the world market for dry cargo freight and shipping. Applied Economics, 21(1):339–356.
14. Beenstock, M., and Vergottis, A. R., 1989b. An econometricmodel of the world tanker market. Journal of Transport Economics and Policy, 23, 23(2):263–280.
15. Koopmans, T. C., 1939. Tanker Freight Rates and Tankship Building Harlem
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17. Strandenes, S. P., and Wergeland, T., 1981. Ecotank—en oppdatert versjon, Arbeidsnotat 11/1981 Bergen:Senter for anvendt forskning, Norges Handelshøyskole.
18. Charemza, W., and Gronicki, M., 1981. An econometric model of world shipping and shipbuilding. Maritime Policy and Management, 10(1):21–30.
19. Zannetos, Z. S., 1996. The Theory of Oil Tankship Rates, Massachusetts:MIT Press.
20. Strandenes, S. P., 1984. Price determination in the Time Charter and Second-hand Markets, Discussion paper No 0584 Bergen:Norwegian School of Economics and Business Administration.
21. Lensberg, T., and Rasmussen, H., 1992. A Stochastic Intertemporal Model of the Tanker Market, Report 25/92 Bergen:Centre for Research in Economics and Business Administration.
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23. Mathiesen, L., 1985. Computational experience in solving equilibrium models by a sequence of linear complementary problems. Operations Research, 33:1225–1250.
24. Norman, V. D., and Wergeland, T., 1981. Nortank. A Simulation Model of the Freight Market for Large Tankers, Report No 4 Bergen:Centre for Applied Research, Norwegian School of Economics and Business Administration.
25. 30.4 days is the ‘standard month’ used in voyage calculations
26. The voyage result in shipping terminology is called the time charter equivalent of the spot freight rate. The spot freight rate is quoted in USD/tonne cargo. The time charter equivalent is quoted in USD/dwt per month i.e. income after voyage specific cost or contribution to operating and capital costs
27. The lay up level reflects marginal operating costs. That is, operating costs (c) less costs incurred by laying up. The voyage costs related to smin on the other hand reflects costs of marginally increasing the speed
28. Sørgard, L., 1989. Konkurranseforholdene i verftsindustrien sett i lys av økonomisk teori, Rapport 28/89 Bergen:Senter for anvendt forskning, Norges handelshøyskole.
29. Sørgard [28] argue that, even though individual shipbuilding firms cannot influence market conditions, shipbuilding nations like Japan, South Korea and the European Community in the 1980s increased the degree of co-ordination of their shipbuilding firms
30. In the first part of 1991 theGulf war influenced market conditions. Fleet and trade data are from Fearnleys
31. The model keeps track of the age of tankers by dividing them into 5 year age groups based on year of delivery. This means that we may lift the restriction and move tankers into the substandard group when they reach a certain age
32. Clarkson. 1991. The Clarkson quality Survey, London:Clarkson.
33. For quality vessels we use a 150 000 dwt motor tanker as the representative vessel. A 250 000 dwt turbine tanker represents VLCCs and a motor tanker of 90 000 dwt is used when optimizing speed for small and medium sized tankers
34. Ship owners typically do not pay the bulk of the price until they take delivery of the vessel. In modelling demand for newbuilding contracts the relevant fact is that the ship-owners have no return on the investment in the freight market
35. Hvistendahl, F., and Larssen, N. F., 1989. Annenhåndsmarkedet for bulkskip:vurdering av en semirasjonell modell, Bergen:Norwegian School of Economics and Business Administration. Student Report
36. McKinsey. 1989. Viable strategies for Norwegian Shipping Companies, Bergen:McKinsey in co-operation with Norwegian School of Economics and Business Administration.
37. Dragesund, P., 1992. Kontraheringsadferd i tankmarkedet, Bergen:Norwegian School of Economics and Business Administration. HA dissertation