The aim of this paper is to investigate conceptually how charter market default risk will vary with freight market conditions, charter duration, and the financial situation of the charterer. The primary contribution is the development of a mathematical framework and numerical methodology to...

In this paper we set up the theoretical framework for the valuation of the Asian-style options traded in the freight derivatives market. Assuming lognormal spot freight dynamics, we show that Forward Freight Agreements (FFA) are also lognormal prior to the settlement period, but that this...

The purpose of this paper is to investigate the dynamics of the freight rate in the oil transportation markets using a general non-parametric Markov diffusion model. The empirical results suggest that the dynamics of the spot freight rate in the oil transportation market can best be described by...

This paper uses 4080 observations from the Swedish Maritime Administration (1996-2001) to test how vessel's characteristics influence the length of time between two port state control inspections (PSC) along with the number of deficiencies detected during PSC. It also investigates whether a ship...