Understanding Relationships between Charter Rates and Ship Building Prices in Liquefied Natural Gas Shipping Markets
Understanding Relationships between Charter Rates and Ship Building Prices in Liquefied Natural Gas Shipping Markets
Author(s): T. BANGAR RAJU, Subir RANJAN DAS, Saurabh TIWARI, Nikhil KULSHRESTHASubject(s): Economy, Transport / Logistics
Published by: ASERS Publishing
Keywords: LNG shipping; charter rates; EGARCH; volatility; asymmetric;
Summary/Abstract: There would be rise in LNG shipping business with USA and Australia looking to boosts exports with promising new tonnages from the year 2018. The shipping Charter rates have seen great rise in 2011 but recently have dropping low due increase in supply of ships and limited growth in cargo. The order book of LNG is looking promising there is a need to understand the volatility of LNG charter rates and New Shipbuilding prices as huge capital investment is made in ordering these vessels. The paper analyses asymmetric relationship between New Shipbuilding prices and Short Term Charter rates of LNG shipping using VECM-EGARCH model. The results show existence of long term relationship between new shipbuilding prices and Short term charter rates.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: XIV/2019
- Issue No: 63
- Page Range: 92-102
- Page Count: 11
- Language: English
