Revealing the freight market risk in Istfix shipping area Online publication date: Sat, 27-Sep-2014
by Gözde Ünal; Sinem Derindere Köseoğlu
International Journal of Shipping and Transport Logistics (IJSTL), Vol. 6, No. 6, 2014
Abstract: This study analyses the market risk of the freight rates of Istfix shipping area, where small coaster size of dry/general cargo mini bulkers ranging from 2,000 dwt to 12,000 dwt operate on Black Sea-Mediterranean-Continent routes. Having used VaR and expected shortfall as the market risk measures, we have found that the market risk is higher on longer routes in this region. However, the results do not suggest a significant relationship between the market risk of freight rates and that of coaster tonnages. Overall, the market risk in Istfix shipping area has been found to be much lower than in the international Baltic handysize index (BHSI), a proxy international index of relatively small sized vessels. The findings provide a better understanding of Istfix shipping area compared to BHSI for tramp market participants and speculators in freight derivatives markets for hedging and speculative purposes in their investment strategies and financial decision making processes.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Shipping and Transport Logistics (IJSTL):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook