Contracting decisions in the crude oil transportation market: Evidence from fixtures matched with AIS data

Contracting decisions in the crude oil transportation market: Evidence from fixtures matched with AIS data

Spot market

AIS data

International shipping

Oil transportation

In this paper, we investigate the contracting behaviour of participants in the spot freight market for tankers by analysing the positioning of vessels at the time of fixture. For that purpose, we create a new dataset obtained by merging spatial ship positions, commercial fixtures and technical vessel specifications. Using quantile and quantile fixed effect regressions, we show how market conditions, vessel characteristics and charterers’ preferences affect the fixture location. Our main result is that oil buyers secure tonnage earlier during strong tanker markets and that the geography of trade creates natural decision points that dominate in the spatial distribution of fixtures.

130

Transportation Research Part A: Policy and Practice

2019-12-01

Prochazka, Vít

Adland, Roar

Wolff, François-Charles

Journal Article

PYTK77EF

0965-8564

10.1016/j.tra.2019.09.009