The influence of trading performance and fleet allocation on tanker earnings : an empirical study of differences in quarterly reported average vessel earnings for publicly listed tanker companies in terms of fixing skill and fleet allocation

Abstract

This study considers the time charter equivalent (TCE) earnings reported by publicly listed crude oil tanker companies and multiple data sources to assess shipowner’s degree of skill in timing and positioning of vessel through space and time. It contributes to the literature by developing new variables to analyze the degree of skill in timing and positioning of vessels by using AIS-derived voyage data and data on regional freight rates. Furthermore, it tests whether or not these variables are associated with changes in average vessel earnings between Q1 2014 and Q2 2020. Additionally, it measures the influence of particular shipowners on TCE. The study confirms that there are differences in earnings across different areas, and that exposure to such routes seems to add excess value for shipowners. Furthermore, it attempts to measure whether shipowners are able to add value terms of the time of fixture but finds no evidence to support this.