Market interactions between agricultural commodities and the dry bulk shipping market
We investigate and quantify the relationship between agricultural commodities and ocean-going freight rates, using a weekly dataset from 2010 to 2019 and a Vector Error Correction Methodology. The results are firstly supportive of the view that vessel classes are highly interconnected, and secondly...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Elsevier
2021-03-01
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| Series: | Asian Journal of Shipping and Logistics |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2092521220300547 |
| _version_ | 1818380830841503744 |
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| author | Nektarios A. Michail Kostis D. Melas |
| author_facet | Nektarios A. Michail Kostis D. Melas |
| author_sort | Nektarios A. Michail |
| collection | DOAJ |
| description | We investigate and quantify the relationship between agricultural commodities and ocean-going freight rates, using a weekly dataset from 2010 to 2019 and a Vector Error Correction Methodology. The results are firstly supportive of the view that vessel classes are highly interconnected, and secondly confirm that commodity prices can have a strong impact on freight rates across most vessel classes. For commodities in which no impact is registered on freight rates, the possibility of substitution effects exists. Furthermore, the results indicate that the markets in which these products trade can be a significant determinant of future freight rate movements. These findings can be particularly useful for agricultural businesses that are concerned with the transportation cost of their products and the ways that the latter can be mitigated. |
| first_indexed | 2024-12-14T02:24:55Z |
| format | Article |
| id | doaj.art-92a0b7118930498f834d05bca87147a3 |
| institution | Directory Open Access Journal |
| issn | 2092-5212 |
| language | English |
| last_indexed | 2024-12-14T02:24:55Z |
| publishDate | 2021-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Asian Journal of Shipping and Logistics |
| spelling | doaj.art-92a0b7118930498f834d05bca87147a32022-12-21T23:20:25ZengElsevierAsian Journal of Shipping and Logistics2092-52122021-03-013717381Market interactions between agricultural commodities and the dry bulk shipping marketNektarios A. Michail0Kostis D. Melas1Economic Analysis and Research Department, Central Bank of Cyprus, School of Economics and Business, Cyprus University of Technology, Cyprus Centre for Business Research, Nicosia, CyprusFaculty of Business and Economics, Metropolitan College, Thessaloniki, Greece; Corresponding author at: Faculty of Business and Economics, Metropolitan College, 14, El. Venizelou, 546 24, Thessaloniki, Greece.We investigate and quantify the relationship between agricultural commodities and ocean-going freight rates, using a weekly dataset from 2010 to 2019 and a Vector Error Correction Methodology. The results are firstly supportive of the view that vessel classes are highly interconnected, and secondly confirm that commodity prices can have a strong impact on freight rates across most vessel classes. For commodities in which no impact is registered on freight rates, the possibility of substitution effects exists. Furthermore, the results indicate that the markets in which these products trade can be a significant determinant of future freight rate movements. These findings can be particularly useful for agricultural businesses that are concerned with the transportation cost of their products and the ways that the latter can be mitigated.http://www.sciencedirect.com/science/article/pii/S2092521220300547Agricultural commoditiesDry bulkShipping freight ratesCointegrationVariance decomposition |
| spellingShingle | Nektarios A. Michail Kostis D. Melas Market interactions between agricultural commodities and the dry bulk shipping market Asian Journal of Shipping and Logistics Agricultural commodities Dry bulk Shipping freight rates Cointegration Variance decomposition |
| title | Market interactions between agricultural commodities and the dry bulk shipping market |
| title_full | Market interactions between agricultural commodities and the dry bulk shipping market |
| title_fullStr | Market interactions between agricultural commodities and the dry bulk shipping market |
| title_full_unstemmed | Market interactions between agricultural commodities and the dry bulk shipping market |
| title_short | Market interactions between agricultural commodities and the dry bulk shipping market |
| title_sort | market interactions between agricultural commodities and the dry bulk shipping market |
| topic | Agricultural commodities Dry bulk Shipping freight rates Cointegration Variance decomposition |
| url | http://www.sciencedirect.com/science/article/pii/S2092521220300547 |
| work_keys_str_mv | AT nektariosamichail marketinteractionsbetweenagriculturalcommoditiesandthedrybulkshippingmarket AT kostisdmelas marketinteractionsbetweenagriculturalcommoditiesandthedrybulkshippingmarket |