|In this thesis we investigate whether a number of variables specific to a vessel, the
contracting parties, or market conditions affect the price charged for the ship. Literature in
maritime economics seems to suggest that competitive shipbuilders are price takers, and thus
have little influence on the prices they charge ship owners. However, deviations in price for
comparable vessels contracted in the same period are observed.
Determinants derived from contract information and market conditions make up the
covariates of the study, and we are particularly interested in the effects of delivery time,
shipyard experience and firm size. The data sample contains contract information on 3,759
individual ships constructed at 77 shipyards between 1990 and 2014. We perform separate
fixed effects regressions on the shipbuilding segments of bulk, container and tanker vessels,
in order to incorporate shipyard and ship owner heterogeneity as well as capture segment
specific effects. The results suggest that macroeconomic determinants are the most
influential covariates, although we also find the microeconomic determinants gross tonnage,
top speed, delivery time, as well as ship owner and shipyard heterogeneity affecting prices.
The effects from these covariates prove to have different effects in the three segments.
Similar for all markets is that ship owner fixed effects have a greater influence on price
movements than those of shipyards.