Lead-lag relationship between new-building and second-hand ship prices
Document Type
Journal article
Source Publication
Maritime Policy & Management: The flagship journal of international shipping and port research
Publication Date
6-1-2014
Volume
41
Issue
4
First Page
303
Last Page
327
Abstract
We examine lead-lag relationships between new-building and second-hand ship prices. Our analysis shows the existence of a one-directional lead-lag relationship between two ship prices. The direction of lead-lag relationship is not affected by the time evolution and age of second-hand ships, but is affected by the division of shipping sector. Particularly, directions of ship price movements in dry bulk and tanker shipping sectors are opposite. We argue that the opposite directional lead-lag relationships are caused by the difference in competition levels and the difference in the purposes of trading in the two shipping sectors.
DOI
10.1080/03088839.2013.821209
Print ISSN
03088839
E-ISSN
14645254
Publisher Statement
Copyright © 2013 Taylor & Francis
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Kou, Y., Liu, L., & Luo, M. (2014). Lead-lag relationship between new-building and second-hand ship prices. Maritime Policy & Management, 41(4), 303-327. doi: 10.1080/03088839.2013.821209