An analytical study on the likely causes of the minor bubbles in the Baltic dry index

Risk and Volatility Spillover Between Commodity and Freight Market An Application on Capesize Freight Market

“…Although the rate of transport with Capesize-type ships is very low, the relationship between wheat price and Capesize freight may be related to the neighboring market factor that we dealt with in one study (Açık and Başer, 2018a). Accordingly, even if the transportation cost of each type of ship is different, they can enter each other's markets under different market conditions.…”

“…Situations that occur in freights and cause a temporary increase outside the trend can be considered as price bubbles. In a study where we evaluated the factors affecting these freight bubbles (Açık and Başer, 2018a), as a result of our examination of the market reports, we have reached the conclusion that the increasing commodity prices are also effective. It is also stated in these market reports that commodity prices rose in response to rising demand for them.…”

“…Studies examining the relationship between commodity prices and maritime markets are summarized in Table 2. In general, if these studies are to be grouped according to their relationship with commodity markets, they can be categorized as those related to the freight market (Chou et al, 2015;Tsioumas and Papadimitriou, 2018;Açık and Başer, 2019;Açık and İnce, 2019;Açık and Başer, 2020;Angelopoulos et al, 2020), those related to the derivatives market (Kavussanos et al, 2010;Kavussanos et al, 2014), those related to the second hand market (Başer and Açık, 2019), and other types of studies (Açık and Başer, 2018a;Açık and Başer, 2018b).…”

“…There is bidirectional relationship between the BCI and the price of iron ore and coal, and one-way relationship between BPI and wheat price. Açık and Başer, 2018a Which factors cause minor bubbles in Dry bulk freight market?…”