The aim of this paper is to use an alternative measure of the efficiency of
the different shipping industries, i.e. VLCC/ULCC (250 000 dwt), Suezmax (140
000 dwt), Aframax (80 000 dwt), which are the main carriers of crude oil, and
Handymax (40 000 dwt), which carries the vast majority of clean (oil) products.
The results of the theoretical analysis confirm that, under pure expectations
theory, the larger vessels demonstrate higher volatility, as measured by the
standard deviation, than the smaller vessels, thereby supporting the
proposition that period freight rates do indeed appear to be perfect foresights
of the future spot rates.
April 7, 2009