| dc.description.abstract | This thesis presents the first analysis of the two-tier market hypothesis, regarding realized
operational efficiency in the VLCC spot freight rates. Investigating this hypothesis is an
important objective, because the existence of an efficiency premium in the spot market will
induce ship owners to invest in more environmentally friendly vessels.
We utilize a panel data set of 1,007 voyage rate fixtures between January 2013 and September
2016, on routes between the Persian Gulf and the Eastern part of Asia. We test for
an energy efficiency premium by implementing two different multiple regression models,
firstly by adopting the traditional approach using an “external” market index as the market
proxy. Our results suggest that the market rate proxy for a standardised vessel is dominant
in terms of explanatory power, and our findings show no evidence for an efficiency premium
after controlling for macro-, contract- and ship-specific variables. Secondly, seeking
to circumvent the problems, which the market rate proxy presents, we construct a new market
indicator from microdata. We control for contract- and ship-specific variables, as well
as time, charter and owner fixed effects, and we find weak evidence for a two-tier market
where energy-efficient vessels attract a premium in the freight rates.
In a separate analysis, we examine whether fuel-inefficient vessels, which in theory should
have a competitive disadvantage against more efficient ships, compensate by slowing down
their speed. By estimating a multiple regression model with macro- and ship-specific variables,
our findings suggest that energy-inefficient vessels tend to correspond to higher operational
speed. | nb_NO |
