Intra-week trends in dry bulk freight market: Models of short term estimation

Abstract

The aim of this paper is to investigate intra-week fluctuations and trends in the dry bulk freight market and to estimate predictive model of freight index for short run pricing strategies in shipping business. In regular terms, five trading days exist in a week and investors may tend to move over the trends of the beginning of a week. Therefore, a spillover effect exists between Monday and Friday pricing tendencies of freight market. This paper investigates existence of intra-week spillover effect and estimates its structural model by using classical linear regression method. Foremost results indicate strong relationship between both ends of the week.