Fleet composition strategy model for shipping firm using analysis of shipping and pre-owned ship markets

Abstract

Shipping market shows higher volatility than real economy in financial movements. Although shipping and shipbuilding companies have their own methods for the decision-making in the unstable market,they will not reveal their specific approaches.The present paper proposes methods of evaluating operation strategies,extracting consensus outlook of market participants from price differences in secondhand ships.The paper also demonstrates the comparison of best strategies at a sharp decline of the market. The proposed methods of evaluating portfolio of fleet and its management will provide basis for the future analysis of volatile shipping market.