The flag of registry and classification society are an integral part of the target factors used by Port State Control (PSC) authorities when deciding on vessels to select for inspection. A shipowner may then have an interest in changing the flag of registry (flag-hopping) and classification...

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 presents a simple argument, based on logic and maritime economic theory alone, for rejecting the applicability of the expectations theory in bulk shipping freight markets. It is shown that the risk premium must be time varying and must, in a systematic fashion, depend upon freight...

In the recent literature, empirical tests of stationarity of freight rates often conclude that spot freight rates are non-stationary processes. However, many maritime economists would argue that the freight rate cannot exhibit asymptotically explosive behaviour, as implied by non-stationarity,...