Capacity retirement in the dry bulk market: A vessel based logit model

• Published in: Transportation research. Part E, Logistics and transportation review Vol. 92; pp. 28 - 42
• Main Authors: Alizadeh, Amir H., Strandenes, Siri Pettersen, Thanopoulou, Helen
• Format: Journal Article
• Language: English
• Published: Exeter Elsevier India Pvt Ltd 01.08.2016; Elsevier Sequoia S.A
• Subjects: Capacity retirement; Decision analysis; Dry bulk market; Drying; Earnings; Freight forwarding; Logit; Markets; Metal industry; Pricing; Profits; Scrap; Scrapping probability; Shipping crisis; Ships; Studies; Transportation; Vessels; Volatility; Scrapping probability; Dry bulk market; Shipping crisis; Logit; Capacity retirement

•We use a panel logit model to estimate the probability of scrapping dry bulk vessels.•There is a positive relation between age and probability of scrapping a vessel.•The relation between vessel size and scrapping probability varies across vessel classes.•Scrapping probability falls with earnings, b...