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Cited by 162Market Dynamics and VolatilityCOVID-19 Pandemic ImpactsMaritime Ports and Logistics

Shipping markets in turmoil: An analysis of the Covid-19 outbreak and its implications

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Michail, Nektarios A., Melas, Kostis D.·2020·Transportation Research Interdisciplinary Perspectives
DOI 10.1016/j.trip.2020.100178PMC PMC7381896
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Abstract

In the current study, we examine, for the first time in the literature, the impact of exogenous effects in the shipping industry by employing data from the recent Covid-19 pandemic outbreak and explore the reactions of freight rates for dry bulk, clean, and dirty tankers. Our results, using both GARCH (1,1) and VAR specifications, suggest that such events are directly affecting the dry bulk and the dirty tanker segments. In addition, the results also suggest that second round effects, mostly via the decline in oil prices and, in some cases, third round effects via the impact from the stock market, also exist. Finally, by employing daily port calls a proxy variable for the demand for transportation services, we show that both the dry bulk and clean tankers are highly affected by the demand side of the economy, while vessels which transport crude oil do not register such a relationship.

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  • In the first half of 2020, about 10% of the crude tanker fleet and 9% of the products fleet were used for floating storage.

    “The first half of 2020 saw about 10% of the crude tanker fleet and 9% of the products fleet being used for floating storage due to the oil market dynamics, causing a significant spike in tanker markets.”

    From Challenges and Security Risks in the Red Sea: Impact of Houthi Attacks on Maritime Traffic (2024) · cites this paper as [76]

    Section 4 (p. 4) says tankers served as floating storage during the coronavirus crisis and that lower oil prices can raise tanker freight rates. It reports a 37% increase in floating-storage volumes over two months, but does not give the claimed 10% crude-tanker or 9% products-fleet shares for the first half of 2020. (LLM, conf=0.85)

    Experimental — accuracy not yet measured

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Cited by

Sorted by citations

Authors
Michail, N. A., & Melas, K. D.
Affiliations
Central Bank of Cyprus (CY)
ORCID
Michail, Nektarios A.
Venue
Transportation Research Interdisciplinary Perspectives
Publisher
Elsevier BV
Published
2020-09
Volume
7
Pages
100178
ISSN
2590-1982 (ISSN-L)
DOI
10.1016/j.trip.2020.100178
PMC
PMC7381896
OpenAlex
W3045453754
Cited by
162
References
1
Citations by year
2026: 11 · 2025: 18 · 2024: 35 · 2023: 28 · 2022: 30 · 2021: 36 · 2020: 4
FWCI
20.83
Type
journal article
Language
en
Open access
Licence
Locations
  • Transportation Research Interdisciplinary Perspectives (publishedVersion, cc-by)
  • PubMed Central (publishedVersion)
  • PubMed (publishedVersion)
  • Ktisis at Cyprus University of Technology (Cyprus University of Technology) (submittedVersion, cc-by-nc-nd)
  • SSRN Electronic Journal (submittedVersion)
  • DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Market Dynamics and Volatility
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › COVID-19 Pandemic Impacts
  • Physical Sciences › Engineering › Industrial and Manufacturing Engineering › Maritime Ports and Logistics
Keywords
shipping market, COVID-19 pandemic, freight rates, dry bulk shipping, tanker shipping, crude oil tankers, oil prices, stock market effects, port calls, travel demand, external shocks, GARCH, vector autoregression

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