https://doi.org/10.52903/wp2024331
THE DRY-BULK SHIPPING MARKET: A SMALL ECONOMETRIC MODEL
Evangelia Kasimati
Bank of Greece
Nikolaos Veraros
King’s College London and
Athens Laboratory of Business Administration (ALBA)
ABSTRACT
Dry-bulk shipping is of paramount importance for the safe and efficient transportation of goods around the world. This paper introduces a small econometric model describing the main dynamics and interactions within this sector. In addition, we have efficiently integrated the influence of global trade demand on freight rates, addressing a limitation that has persisted in many similar models. We consider that our model could assist market participants to take more educated decisions in chartering and investing.
JEL-classifications: C32, E17, F47
Keywords: International shipping, freight rates, seaborne trade, econometric model, forecasting
Acknowledgements: We would like to thank Vasilis Kyveris at Navios Maritime for providing useful access to data as well as Stelios Panagiotou and Hiona Balfousia at the Bank of Greece for their valuable input and comments.
Disclaimer: The views expressed in this paper are those of the authors and not necessarily those of the Bank of Greece.
Correspondence:
Evangelia Kasimati
Bank of Greece
21 E. Venizelos Ave
10250, Athens
Tel.: 210 3202649
ekasimati@bankofgreece.gr