Title

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

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Full-text Version

Publisher’s Version

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