IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-00760989.html
   My bibliography  Save this paper

Chartering practices in liner shipping

Author

Listed:
  • Pierre Cariou

    (Euromed Marseille - École de management - Association Euromed Management - Marseille)

  • François-Charles Wolff

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

Abstract

Chartering rather than owning a vessel is a recurrent question for liner operators. This article aims at identifying the extent of such chartering practices, the characteristics of vessels chartered and if an impact on liner profitability can be found. To do so, an initial dataset collected in 2009 on 510 liner operators and 5,005 vessels is used. Results from random effect Probit models point out first that chartering rates are not different between small and large operators. Furthermore, findings suggest that chartering of small and young vessels is more common and that chartering rates have increased for companies subject to higher fleet growth from 2007 to 2009. An analysis using a fixed effect Logit model on intra-fleet management of 17 selected liner companies further stresses that larger companies have chartered more small vessels during the last 2 years, a result that may be explain by the need to allocate the financing to new larger vessels. We then study whether the chartering rate and the size of these 17 liner companies have had an influence on their observed profitability in 2007, 2008 and 2009. Our results suggest that those variables impact profitability, but in variable ways over time.

Suggested Citation

  • Pierre Cariou & François-Charles Wolff, 2012. "Chartering practices in liner shipping," Working Papers hal-00760989, HAL.
  • Handle: RePEc:hal:wpaper:hal-00760989
    Note: View the original document on HAL open archive server: https://hal.science/hal-00760989
    as

    Download full text from publisher

    File URL: https://hal.science/hal-00760989/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Vincenzo Verardi & Christophe Croux, 2009. "Robust regression in Stata," Stata Journal, StataCorp LP, vol. 9(3), pages 439-453, September.
    2. D. K. Ryoo & H. A. Thanopoulou, 1999. "Liner alliances in the globalization era: a strategic tool for Asian container carriers," Maritime Policy & Management, Taylor & Francis Journals, vol. 26(4), pages 349-367, October.
    3. Butler, J S & Moffitt, Robert, 1982. "A Computationally Efficient Quadrature Procedure for the One-Factor Multinomial Probit Model," Econometrica, Econometric Society, vol. 50(3), pages 761-764, May.
    4. Brian Slack & Claude Comtois & Robert McCalla, 2002. "Strategic alliances in the container shipping industry: a global perspective," Maritime Policy & Management, Taylor & Francis Journals, vol. 29(1), pages 65-76, January.
    5. Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 225-238.
    6. Pierre Cariou & Francois-Charles Wolff, 2011. "Ship-Owners' Decisions to Outsource Vessel Management," Transport Reviews, Taylor & Francis Journals, vol. 31(6), pages 709-724.
    7. Antoine Frémont, 2009. "Empirical Evidence for Integration and Disintegration of Maritime Shipping, Port and Logistics Activities," OECD/ITF Joint Transport Research Centre Discussion Papers 2009/1, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Peng, Wenhao & Bai, Xiwen, 2022. "Prospects for improving shipping companies’ profit margins by quantifying operational strategies and market focus approach through AIS data," Transport Policy, Elsevier, vol. 128(C), pages 138-152.
    2. Nowińska, Agnieszka & Schramm, Hans-Joachim, 2021. "Uncertainty, status-based homophily, versatility, repeat exchange and social exchange in the container shipping industry," Journal of Business Research, Elsevier, vol. 128(C), pages 524-536.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laisney, François & Pohlmeier, Winfried & Staat, Matthias, 1991. "Estimation of labour supply functions using panel data: a survey," ZEW Discussion Papers 91-05, ZEW - Leibniz Centre for European Economic Research.
    2. Das, Marcel & van Soest, Arthur, 1999. "A panel data model for subjective information on household income growth," Journal of Economic Behavior & Organization, Elsevier, vol. 40(4), pages 409-426, December.
    3. Chen, Yi-Yi & Schmidt, Peter & Wang, Hung-Jen, 2014. "Consistent estimation of the fixed effects stochastic frontier model," Journal of Econometrics, Elsevier, vol. 181(2), pages 65-76.
    4. Fabian Schupp & Leonid Silbermann, 2017. "The Role of Structural Funding for Stability in the German Banking Sector," MAGKS Papers on Economics 201717, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    5. Jörg Breitung & Michael Lechner, 1996. "Estimation de modèles non linéaires sur données de panel par la méthode des moments généralisés," Économie et Prévision, Programme National Persée, vol. 126(5), pages 191-203.
    6. Hernández-Quevedo, Cristina & Jones, Andrew M. & Rice, Nigel, 2008. "Persistence in health limitations: A European comparative analysis," Journal of Health Economics, Elsevier, vol. 27(6), pages 1472-1488, December.
    7. Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997. "Spillovers, foreign investment, and export behavior," Journal of International Economics, Elsevier, vol. 43(1-2), pages 103-132, August.
    8. Jianfeng Zheng & Ziyou Gao & Dong Yang & Zhuo Sun, 2015. "Network Design and Capacity Exchange for Liner Alliances with Fixed and Variable Container Demands," Transportation Science, INFORMS, vol. 49(4), pages 886-899, November.
    9. Balci, Gökcay & Cetin, Ismail Bilge & Tanyeri, Mustafa, 2018. "Differentiation of container shipping services in Turkey," Transport Policy, Elsevier, vol. 61(C), pages 26-35.
    10. Santiago Pereda-Fernández, 2021. "Copula-Based Random Effects Models for Clustered Data," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 39(2), pages 575-588, March.
    11. Judith K. Hellerstein, 1994. "The Demand for Post-Patent Prescription Pharmaceuticals," NBER Working Papers 4981, National Bureau of Economic Research, Inc.
    12. Ribar, David C., 2004. "What Do Social Scientists Know About the Benefits of Marriage? A Review of Quantitative Methodologies," IZA Discussion Papers 998, Institute of Labor Economics (IZA).
    13. Laetitia Duval & Francois-Charles Wolff, 2010. "Remittances matter: longitudinal evidence from Albania," Post-Communist Economies, Taylor & Francis Journals, vol. 22(1), pages 73-97.
    14. François-Charles Wolff, 2013. "Well-Being of Elderly People Living in Nursing Homes: The Benefits of Making Friends," Kyklos, Wiley Blackwell, vol. 66(1), pages 153-171, February.
    15. Breitung, Jörg & Lechner, Michael, 1998. "Alternative GMM methods for nonlinear panel data models," SFB 373 Discussion Papers 1998,81, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    16. Giulia Bettin & Riccardo Lucchetti & Claudia Pigini, 2016. "State dependence and unobserved heterogeneity in a double hurdle model for remittances: evidence from immigrants to Germany," Mo.Fi.R. Working Papers 127, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    17. Manudeep Bhuller & Christian N. Brinch & Sebastian Königs, 2017. "Time Aggregation and State Dependence in Welfare Receipt," Economic Journal, Royal Economic Society, vol. 127(604), pages 1833-1873, September.
    18. Saïd Hanchane & Isabelle Recotillet, 2004. "On gender-specific socio-demographic determinants of the transition from school to work : a longitudinal analysis based on French data," Working Papers halshs-00010141, HAL.
    19. Natalia Isachenkova & John Hunter, 2002. "A Panel Analysis Of UK Industrial Company Failure," Working Papers wp228, Centre for Business Research, University of Cambridge.
    20. William Greene, 2007. "Discrete Choice Modeling," Working Papers 07-6, New York University, Leonard N. Stern School of Business, Department of Economics.

    More about this item

    Keywords

    Liner shipping; chartering; profitability;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:hal:wpaper:hal-00760989. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.