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Inspiration tanker shipping market volatility, the shipping industry practitioners from more intense market volatility of financial markets through product innovation and learn from, the ocean freight derivatives. Forward Freight Agreements (FFA) buyers and sellers a one or a group of specific routes and to specify the quantity of goods or ship reached a time in the future freight settlement agreement. The shipping price prior agreement of the agreement with the Baltic Exchange, the difference of the index price (Platts tanker freight index) for a cash settlement. Forward Freight Agreements (FFA) as a risk management tool by many shipowners and shippers of all ages, for shipping practitioners to make the right choices in the trading of forward freight agreements (FFA), Understanding Forward Freight Agreements (FFA) and the relationship between the volatility of the spot freight market is very important. Based on this, stochastic volatility model to analyze the relationship between crude Forward Freight Agreements (FFA) and the spot freight, select three main the important crude FFA routes - TD3, TD5, TD7 study. The main contents are as follows: First, this study crude oil transportation market is characterized by the development status, supply and demand analysis, and development prospects; followed by analysis of the crude oil forward freight market produce, development history, current situation, market participants, the actual operation process and examples analysis, qualitative analysis below the foundation. Of stochastic volatility model and its extended model introduced in this article, a clear description of the economic significance of the parameters in the model. Again, by analyzing the yield characteristics of the TD3, TD5, TD7 routes, persistent, variance homogeneity, and the use of three stochastic volatility model to analyze the impact of the crude oil forward freight market volatility of the spot freight. Finally, draw the conclusion. In summary, the main contribution of this paper are: 1 FFA data are not available, so the data from the current freight rate volatility differences to study and consider the world economy and other factors ; 2 in the economic analysis of the shipping market, the introduction of stochastic volatility model; 3. correction model, dummy variables in the model to analyze the introduction of FFA as well as a number of economic indicators to join the spot freight rates impact.
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