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Title :How do oil prices affect tanker freight rates?
Alternative Title :Πώς επηρεάζουν οι τιμές του πετρελαίου τις τιμές των ναύλων;
Creator :Τζωρτζάκης, Κωνσταντίνος
Tzortzakis, Konstantinos
Contributor :Τσουκνιδής, Δημήτριος (Επιβλέπων καθηγητής)
Δράκος, Κωνσταντίνος (Εξεταστής)
Μούτος, Θωμάς (Εξεταστής)
Athens University of Economics and Business, Department of Accounting and Finance (Degree granting institution)
Type :Text
Extent :16p.
Language :en
Identifier :
Abstract :Κάτι που είναι κοινό μεταξύ των ναύλων των πετρελαιοφορων και των τιμών του πετρελαιοφόρου είναι η αστάθεια τους. Αυτή η εργασία επιδιώκει να διερευνήσει τη φύση της σχέσης μεταξύ αυτών των μεταβλητών.
Something that is common among the tanker freight rates and oil prices is their volatility. This project seeks to investigate the nature of the relationship among these variables. In order to measure tanker freight rates, time-series of the 1-year time charter rates of VLCC, Suezmax and Aframax were used, while the oil price is measured with the use of the Western Texas Intermediary (WTI) prices per barrel. In addition to those, variables were used to measure global oil production and demand for oil sea transport services in ton-miles. The period that is examined is between 2000Q1 to 2019Q1 and is in quarterly time intervals. The analysis took place using the Vector Autoregression (VAR) analysis. The results indicate that the way the oil price shocks affect volatilities of tanker freight rates depend on the vessel category. WTI shocks affect directly only the values of Aframax freight rates, while there appears to be no direct effect on the freight rates of Suezmaxes and VLCCs. Along with that, the freight rates for all vessel categories are affected by shocks in of oil supply and demand for oil sea transport. Any effect that WTI prices have on the two latter categories is indirect, since oil price shocks affect the values of oil supply and demand for sea transport oil services, with the shocks then being passed on to VLCC and Suezmax freight rates. The reason that Aframaxes are more reactive to oil price shocks, could be attributed to their size that enables them to visit a variety of ports and also alternate between crude oil and clean oil products as their carried commodity. This makes it easier for them to reposition to other routes in order to mitigate these effects, whereas VLLC and Suezmax can call to ports with specific requirements. These findings should be considered both by academics and market practitioners.
Subject :Πετρέλαιο
Freight rates
Date Available :2020-10-31 22:41:28
Date Issued :10-12-2019
Date Submitted :2020-10-31 22:41:28
Access Rights :Free access
Licence :

File: Tzortzakis_2019.pdf

Type: application/pdf