IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v36y2000i4p297-307.html
   My bibliography  Save this article

Does quality pay? The case of the dry bulk market

Author

Listed:
  • Tamvakis, Michael N.
  • Thanopoulou, Helen A.

Abstract

Following important changes in the safety regulation of tankers, the dry bulk sector is coming under the spotlight in a safety and quality perspective. Nominal freight differentiation between 'quality' and 'other' tonnage has been observed occasionally and much lip service has been paid to promoting the need for younger and safer ships. Whether or not these signals actually manifest in a market initiative for the enhancement of the standards of the world bulk carrier fleet is debatable. This paper investigates the possible existence of a two-tier spot freight market for medium and large bulk carriers of differing age. Known voyage fixtures are investigated for four representative years since the end of the 1980s, during which contrasting freight market conditions prevailed. In all but very few cases, there was no statistically significant difference between rates paid to older and younger tonnage. In those few cases where such differences were statistically significant, they never exceeded 10%.

Suggested Citation

  • Tamvakis, Michael N. & Thanopoulou, Helen A., 2000. "Does quality pay? The case of the dry bulk market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 36(4), pages 297-307, December.
  • Handle: RePEc:eee:transe:v:36:y:2000:i:4:p:297-307
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554500000053
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lutz Kilian & Nikos Nomikos & Xiaoqing Zhou, 2023. "A Quantitative Model of the Oil Tanker Market in the Arabian Gulf," The Energy Journal, , vol. 44(5), pages 95-114, September.
    2. Mary R. Brooks, 2011. "Competition and Regulation in Maritime Transport," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 37, Edward Elgar Publishing.
    3. 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.
    4. Roar Adland & Pierre Cariou & Francois-Charles Wolff, 2017. "What makes a freight market index ?," Post-Print hal-03913228, HAL.
    5. André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), 2011. "A Handbook of Transport Economics," Books, Edward Elgar Publishing, number 12679.
    6. Adland, Roar & Cariou, Pierre & Wolff, François-Charles, 2018. "Does energy efficiency affect ship values in the second-hand market?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 347-359.
    7. Adland, Roar & Alger, Harrison & Banyte, Justina & Jia, Haiying, 2017. "Does fuel efficiency pay? Empirical evidence from the drybulk timecharter market revisited," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 1-12.
    8. Albert Veenstra & Jan van Dalen, 2011. "Fixtures-based Freight Rate Indices, and their Impact on Freight Rate Modelling in the Shipping Industry," Chapters, in: Kevin Cullinane (ed.), International Handbook of Maritime Economics, chapter 4, Edward Elgar Publishing.
    9. Adland, Roar & Cariou, Pierre & Wolff, Francois-Charles, 2017. "What makes a freight market index? An empirical analysis of vessel fixtures in the offshore market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 104(C), pages 150-164.
    10. Thanopoulou, Helen A., 2007. "Chapter 2 A Fleet for the 21st Century: Modern Greek Shipping," Research in Transportation Economics, Elsevier, vol. 21(1), pages 23-61, January.
    11. Adland, Roar & Cariou, Pierre & Wolff, Francois-Charles, 2016. "The influence of charterers and owners on bulk shipping freight rates," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 86(C), pages 69-82.
    12. Dinwoodie, John & Landamore, Melanie & Rigot-Muller, Patrick, 2014. "Dry bulk shipping flows to 2050: Delphi perceptions of early career specialists," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 64-75.
    13. Alizadeh, Amir H. & Talley, Wayne K., 2011. "Vessel and voyage determinants of tanker freight rates and contract times," Transport Policy, Elsevier, vol. 18(5), pages 665-675, September.
    14. Bakkehaug, Rikard & Eidem, Eirik Stamsø & Fagerholt, Kjetil & Hvattum, Lars Magnus, 2014. "A stochastic programming formulation for strategic fleet renewal in shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 72(C), pages 60-76.
    15. Amir Alizadeh & Wayne Talley, 2011. "Microeconomic determinants of dry bulk shipping freight rates and contract times," Transportation, Springer, vol. 38(3), pages 561-579, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:36:y:2000:i:4:p:297-307. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.