| dc.description.abstract | The freight rates across geographical regions in the drybulk segment may experience
substantial differences on a short-term basis, but generally move in tandem in the long-term.
If these temporary differences cannot be exploited financially by applying trading rules based
on publicly available information, then the market can be viewed as spatially efficient. This
paper uses cointegration analysis to establish the long-term relationship between supramax
tripcharter rates, and moves on to evaluate the financial profitability of trigger based trading
rules. These rules are based on spreads between certain tripcharter rates. The trading rules are
applied in order to investigate whether the short-term differences allowed under cointegration
are transient enough to coincide with a spatially efficient market. The results provide
evidence of a profitable trading strategy, but when accounting for potential off-hire ballasting
activity these profits are zeroed out. Thus, the conclusion points towards a spatially efficient
dry bulk supramax market. | nb_NO |
