Abstract
This paper integrates econometric models developed separately for the dry cargo and tanker markets. Data cover periods from 1950-1985. The result is a model of the world shipping market in which shocks in one sector spill over to the other, which in turn generates feedbacks to the originating sector. There are three main linkages: shipbuilding where tankers may be built and delivered at the expense of dry carbon vessels, and vice versa; combination vessels may be switched according to the dictates of profitability; the scrap market where a shock in one sector affects scrap prices, which in turn affect scrapping in the other. Simulations of the model suggest the spillover and feedback effects are quite large. Analysis of one sector is incomplete without simultaneous analysis of the other. -Authors
Original language | English |
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Pages (from-to) | 3-38 |
Number of pages | 36 |
Journal | Transportation Research Part E: Logistics and Transportation Review |
Volume | 29 |
Issue number | 1 |
State | Published - 1993 |