Econometric analysis of the ship demolition market

Knapp, Sabine; Kumar, Shashi; Remijn, Anna Bobo

doi:10.1016/j.marpol.2008.02.004

Cited by 52 publications

(50 citation statements)

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“…Mikelis (2007) provided a statistical overview and informative data on the key economic relationships of the market and indicated a positive correlation between the freight rates and the ship-demolition prices. The same finding was also verified by Knapp et al (2008) who conducted an econometric analysis whereby they examined by the use of logit models the dynamics of the ship-demolition market and the probability of scrapping a vessel. In particular, as a main result, the analysis confirmed the positive relationship of demolition prices with the probability of scraping a vessel, indicating that ship-owners more likely scrap vessels in periods of high demolition prices.…”

Section: Source: Clarkson Research Services Limited Figure 1 Ship Dementioning

confidence: 55%

The Effect of Vessel Supply on Ship-Demolition Prices

Kagkarakis¹

2017

EJEF

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The ship-demolition is one of the four main markets that form the shipping industry and plays an important role on the seaborne trade, as it mitigates imbalances between supply and demand for transportation services by adjusting the merchant fleet supply. The aim of this study is to examine whether the factors that determine the supply of vessels for demolition are capable of affecting materially the ship-demolition price formation. The availability of ships for demolition is primarily a function of the fleet's age and the conditions on the freight and secondhand markets. The analysis is conducted on the crude tanker and the bulk carrier segments and the vector autoregressive model methodology is employed, whereby the effect of both the supply and the demand factors on the ship-demolition prices is examined. The results indicate that the supply side has limited effect on the price formation in the industry, which is driven by the demand for the steel-scrap commodity.

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Section: Source: Clarkson Research Services Limited Figure 1 Ship Dementioning

confidence: 55%

The Effect of Vessel Supply on Ship-Demolition Prices

Kagkarakis¹

2017

EJEF

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“…Various scholars have divided the shipping markets into freight, second-hand ships, newbuilding, and demolition markets [3,[7][8][9]. The second-hand ship market is distinct from the newbuilding and the demolition markets as an auxiliary market, in the sense that it does not change the number of vessels or the transport capacity offered by the market [3,10].…”

Section: Literature Reviewmentioning

confidence: 99%

Ship Acquisition of Shipping Companies by Sale & Purchase Activities for Sustainable Growth: Exploratory Fuzzy-AHP Application

et al. 2018

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Strengthening sale and purchase (S&P) capacity has become a fundamental requirement for sustainable growth and corporate competitiveness in the modern shipping market. However, there is a lack of research related to S&P and its priority when shipping companies attempt to implement ship acquisition through S&P activities. To fill this gap, this paper conducts an empirical analysis to analyze priority factors during the acquisition of second-hand ships from the perspective of shipping companies. Business criteria are considered to be the most important factors in the analysis of the priority of ship acquisition and investment in shipping companies. To the best of our knowledge, this research is the first exploration covering Korean shipping companies' ship acquisition through S&P activities. This study is expected to contribute to the better understanding of the role of S&P in ensuring the sustainability of shipping companies and to provide stakeholders with valuable insights.

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“…The SRR will facilitate the application of the HKC in the EU, and will have a positive effect on its ratification. It is of vital importance that its interpretation is in accordance with the HKC, so that their effect in the ship recycling industry is positive, and that regional legislation does not enter into conflict with international legislation at any time, in view of the inherently global nature of the shipping sector and the right of shipowners to re-flag their ships [78,79].…”

Section: European Ship Recycling Regulationmentioning

confidence: 99%