Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/82785 
Authors: 
Year of Publication: 
2010
Series/Report no.: 
IME Working Paper No. 104
Publisher: 
University of Southern Denmark, Department of Environmental and Business Economics (IME), Esbjerg
Abstract: 
In this paper we present, for the first time, the price formation of China's dry bulk carrier using vessel prices quoted by major Chinese shipyards in actual shipbuilding orders. This allows us to investigate the relationship of price and determinants in the Chinese shipbuilding industry by including generic market factors as well as Chinese elements. The analysis, employing Principal Component Regression (PCR) approach, indicates that the time charter rate has the most significantly positive impact. While increases in other four factors, namely shipbuilding cost, price cost margin, shipbuilding capacity utilization and credit rate, have descending order of positive influences. Different from traditional perception, we assert that the most important role of time charter rate plays mainly attributes to the 'China Factor' in bulk carrier sector. In addition, simulations are performed to investigate what would happen to the Chinese dry bulk carrier prices under changes of time charter rate and shipbuilding cost. This paper has implications for the Chinese shipyards, shipbuilding industry customers and industry policy makers. Acknowledgment - This research is partly funded by the Chinese Scholarship Council and TORM Foundation.
Subjects: 
Price Formation
Dry Bulk Carrier
Chinese Shipbuilding Industry
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.