Journal of Navigation and Port Research (한국항해항만학회지)

Korean Institute of Navigation and Port Research (한국항해항만학회)
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An Empirical Analysis for Determinants of Secondhand Ship Prices of Bulk Carriers and Oil Tankers

  • Hong, Seung-Pyo (Department of Shipping Management, Graduate School of KMOU) ;
  • Lee, Ki-Hwan (Division of Maritime Business and Economics, Korea Maritime & Ocean University) ;
  • Kim, Myoung-Hee (Division of Maritime Business and Economics, Korea Maritime & Ocean University)
  • Received : 2022.10.11
  • Accepted : 2022.10.21
  • Published : 2022.10.31
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Abstract

The aim of this study was to examine determinants of secondhand Bulk carrier and Oil tanker prices. This study compiled S& P transaction data taken from the Clarksons Research during J anuary 2018 to April 2022 to see how independent variables influenced secondhand ship prices. In the secondhand ship pricing model of entire segments, size, age, and LIBOR showed significant effects on prices. A vessel built in J apan and Korea was traded at a higher price than a vessel built in other countries. In the bulk segment, size, age, Clarksea index, LIBOR, and inflation were meaningful variables. In the Tanker segment, unlike Bulk carrier, only size and age were useful variables. This study performed regression analyses for various sizes of Bulk carriers and Oil tankers. It verified that impacts of variables other than ship size and age were significantly associated with ship type and size while macroeconomic variables had no influence except for bulk carriers. By applying diverse variables affecting secondhand ship price estimation according to various sizes of Bulk carriers and Oil tankers, this study will expand the scope of practical application for investors. It also reaffirms prior research findings that the secondhand ship market is primarily market-driven.

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References

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