The availability of shipping freight contracts with different duration offers shipowners, operators, and charterers the choice to trade risk and return according to the characteristics that each of these contracts offers on the utility frontier. The aim of this paper is to investigate the...

This paper presents a stochastic extension of the classical partial equilibrium models of the spot freight market. The supply of sea transport in the model is based on microeconomic analysis of the supply characteristics of a given fleet and orderbook, in this case the VLCC fleet. It also...

This paper investigates the relationship between the dynamics of the term structure and time-varying volatility of shipping freight rates. Using a dataset covering the period from January 1992 to September 2007 and augmented EGARCH models, we find support for the argument that the volatility of...