The relation between the international and China shipping markets

Gu, Yang; Dong, Xiaoxu; Chen, Zhenxi

doi:10.1016/j.rtbm.2020.100427

Cited by 11 publications

(5 citation statements)

References 20 publications

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“…China's crude oil futures and coke futures markets, as an important part of China's energy market, are characterized by price volatility that directly affects the pro tability and market competitiveness of China's energy industry. International factors such as geopolitical risks and uctuations in the international shipping market will have a direct impact on China's crude oil and coke import prices, which in turn will affect the price movements in the crude oil futures and coke futures markets (Gu et al 2020). On the other hand, China's renewable energy market is also showing a booming development.…”

Section: Introductionmentioning

confidence: 99%

Risk Spillover Effects of International Risk Factors on China's Energy Market - Based on Geopolitical Threats and Shipping Markets

Ren,

Chen,

Hsiao

et al. 2024

Preprint

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Risks caused by geo-risk cases, such as regional conflicts, propagate around the world, and this study provides insights into the dynamic and complex interactions of risks between international geopolitical risks, international shipping markets, China's carbon market, and the energy sector. The findings show that international geopolitical risk and international shipping markets are net transmitters of risk with positive net spillover values, indicating that they tend to export risk volatility to other markets. In contrast, the Chinese carbon market and the markets of traditional energy and high-emission sectors exhibit amplified volatility in the face of extreme risk events such as the COVID-19 pandemic, the Russian-Ukrainian conflict and the Israeli-Palestinian conflict. This highlights the time-varying nature of risk spillovers in these markets. Notably, the peaks in net spillovers from the Geopolitical Risk Index to the Baltic Dry Index and Shanghai crude oil futures suggest a direct correlation with geopolitical tensions affecting the oil and shipping industries, such as conflicts in oil-rich regions or maritime disputes affecting shipping lanes. These findings highlight the mediating role of international shipping in the transmission of geopolitical risks to regional markets. The paper concludes with policy recommendations for predicting and mitigating the impact of geopolitical uncertainty and shipping markets on energy markets.

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Section: Introductionmentioning

confidence: 99%

Risk Spillover Effects of International Risk Factors on China's Energy Market - Based on Geopolitical Threats and Shipping Markets

Ren,

Chen,

Hsiao

et al. 2024

Preprint

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show abstract

“…At the same time, the Dow Jones global shipping index is like a typical stock index because it mainly tracks the stock performance of 25 companies in the shipping industry. Among all these shipping indexes, the Baltic dry bulk freight rate index (BDI) is of particular significance in measuring the health of the world economy ( Gu et al, 2020 ; Chen et al 2021 , 2022c ; Xu et al, 2022b ). The trend of BDI index indeed reflects the market demands for commodities such as metals, minerals, grains and building materials.…”

Section: Introductionmentioning

confidence: 99%

“…To sum up, the above-mentioned studies presented the impact of BDI change on the shipping industry, yet few scholars paid attention to the influences under the emergencies (financial crisis, natural disaster, major epidemic). Although Gu et al (2020) reported the relation between the international and domestic shipping market to observe the factors influencing BDI, the regression outcomes are limited by the short sample and single factor of shipping market. Most of the common literatures on BDI volatility used the same frequency data to build models for research, and BDI volatility is a variable of high-frequency volatility like stock market, so using the same frequency data to build models is easy to lose high-frequency information.…”

Section: Introductionmentioning

confidence: 99%

The influence of COVID-19 epidemic on BDI volatility: An evidence from GARCH-MIDAS model

Zou

Zhou

2022

Ocean & Coastal Management

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“…In recent years, the development of the shipping industry has shown a general fluctuating trend. Since the global economic crisis in 2008, the shipping industry has experienced a long difficult period due to a continuous downturn in demand [1,2]. For a time, shipping lines had to lower the freight rate because of excess capacity.…”

Section: Introductionmentioning

confidence: 99%

Approach to an Equivalent Freight-Based Sustainable Joint-Quotation Strategy for Shipping Blockchain Alliance

Zhang

2022

Sustainability

Self Cite

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To improve the sustainability of the shipping industry, a practice of establishing a new type of shipping alliance based on blockchain has been implemented. In this practice, the following question emerges: How will shipping lines achieve sustainable profit improvement? This paper focuses on the freight decision-making problem by constructing a multi-round joint-quotation strategy. This paper also demonstrates the potential impact of a joint quotation strategy on the blockchain-based open freight market from a theoretical perspective. The numerical experiment results show that, compared with the initial state, the joint quotation strategy can help to stabilize shipping demands and reduce the fluctuation in overall demands. In this strategy, the freight level needs to be high to maximize profits. However, part of the demands will be sacrificed as a result. Moreover, the optimal equilibrium solution under the joint quotation strategy is relatively vulnerable to changes in the competitive relationship among the members of an alliance. In addition, the joint quotation may also be resolutely resisted by the shipper due to monopoly risk, resulting in a major risk of a sharp reduction in demand. The findings in this paper offer a decision-making reference for the sustainable development of the shipping industry.

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The relation between the international and China shipping markets

Cited by 11 publications

References 20 publications

Risk Spillover Effects of International Risk Factors on China's Energy Market - Based on Geopolitical Threats and Shipping Markets

Risk Spillover Effects of International Risk Factors on China's Energy Market - Based on Geopolitical Threats and Shipping Markets

The influence of COVID-19 epidemic on BDI volatility: An evidence from GARCH-MIDAS model

Approach to an Equivalent Freight-Based Sustainable Joint-Quotation Strategy for Shipping Blockchain Alliance

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