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Contracting decisions in the crude oil transportation market: Evidence from fixtures matched with AIS data

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  • Prochazka, Vít
  • Adland, Roar
  • Wolff, François-Charles

Abstract

In this paper, we investigate the contracting behaviour of participants in the spot freight market for tankers by analysing the positioning of vessels at the time of fixture. For that purpose, we create a new dataset obtained by merging spatial ship positions, commercial fixtures and technical vessel specifications. Using quantile and quantile fixed effect regressions, we show how market conditions, vessel characteristics and charterers’ preferences affect the fixture location. Our main result is that oil buyers secure tonnage earlier during strong tanker markets and that the geography of trade creates natural decision points that dominate in the spatial distribution of fixtures.

Suggested Citation

  • Prochazka, Vít & Adland, Roar & Wolff, François-Charles, 2019. "Contracting decisions in the crude oil transportation market: Evidence from fixtures matched with AIS data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 37-53.
    • Handle: RePEc:eee:transa:v:130:y:2019:i:c:p:37-53
    DOI: 10.1016/j.tra.2019.09.009
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    Cited by:

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    5. Li, Yiliang & Bai, Xiwen & Wang, Qi & Ma, Zhongjun, 2022. "A big data approach to cargo type prediction and its implications for oil trade estimation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    6. Yang, Dong & Wu, Lingxiao & Wang, Shuaian, 2021. "Can we trust the AIS destination port information for bulk ships?–Implications for shipping policy and practice," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    7. Bai, Xiwen & Cheng, Liangqi & Iris, Çağatay, 2022. "Data-driven financial and operational risk management: Empirical evidence from the global tramp shipping industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).

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    More about this item

    Keywords

    International shipping; Spot market; AIS data; Oil transportation;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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