The aim of this study is to construct monthly coincident and leading composite indicators for the shipping industry in Korea. The coincident and the leading indicators are computed using the generalized dynamic factor model. We use the production index of the water transport industry as the...

The mean-reverting nature of freight rates is one of the important subjects in maritime economics. The classic understanding of maritime economics (and that of the shipping industry) suggests that freight rate processes are mean-reverting and approach the level decided by the demand/supply...

The mean-reverting nature of freight rates is one of the important subjects in maritime economics. The classic understanding of maritime economics (and that of the shipping industry) suggests that freight rate processes are mean-reverting and approach the level decided by the demand/supply...