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Lead-lag relationship between new-building and second-hand ship prices

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  • Ying Kou
  • Liming Liu
  • Meifeng Luo

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.

Suggested Citation

  • Ying Kou & Liming Liu & Meifeng Luo, 2014. "Lead-lag relationship between new-building and second-hand ship prices," Maritime Policy & Management, Taylor & Francis Journals, vol. 41(4), pages 303-327, July.
    • Handle: RePEc:taf:marpmg:v:41:y:2014:i:4:p:303-327
    DOI: 10.1080/03088839.2013.821209
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    Cited by:

    1. Xiwen Bai & Jasmine Siu Lee Lam, 2019. "An integrated analysis of interrelationships within the very large gas carrier (VLGC) shipping market," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 21(3), pages 372-389, September.
    2. Angelopoulos, Jason & Sahoo, Satya & Visvikis, Ilias D., 2020. "Commodity and transportation economic market interactions revisited: New evidence from a dynamic factor model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    3. Görçün, Ömer Faruk, 2022. "A novel integrated MCDM framework based on Type-2 neutrosophic fuzzy sets (T2NN) for the selection of proper Second-Hand chemical tankers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    4. Alizadeh, Amir H. & Thanopoulou, Helen & Yip, Tsz Leung, 2017. "Investors’ behavior and dynamics of ship prices: A heterogeneous agent model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 106(C), pages 98-114.

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