Welcome to the InfoSci Platform
Could Bunker Fuel Price Changes Impact Coal Spot Rates and Shipping's Carbon Emissions?

Could Bunker Fuel Price Changes Impact Coal Spot Rates and Shipping's Carbon Emissions?

Nasima T. Chowdhury, John Dinwoodie
Copyright: © 2016 |Pages: 17
ISBN13: 9781522500018|ISBN10: 1522500014|EISBN13: 9781522500025
DOI: 10.4018/978-1-5225-0001-8.ch007
Cite Chapter Cite Chapter

MLA

Chowdhury, Nasima T., and John Dinwoodie. "Could Bunker Fuel Price Changes Impact Coal Spot Rates and Shipping's Carbon Emissions?." Sustainable Logistics and Strategic Transportation Planning, edited by Tomaž Kramberger, et al., IGI Global, 2016, pp. 148-164. https://doi.org/10.4018/978-1-5225-0001-8.ch007

APA

Chowdhury, N. T. & Dinwoodie, J. (2016). Could Bunker Fuel Price Changes Impact Coal Spot Rates and Shipping's Carbon Emissions?. In T. Kramberger, V. Potočan, & V. Ipavec (Eds.), Sustainable Logistics and Strategic Transportation Planning (pp. 148-164). IGI Global. https://doi.org/10.4018/978-1-5225-0001-8.ch007

Chicago

Chowdhury, Nasima T., and John Dinwoodie. "Could Bunker Fuel Price Changes Impact Coal Spot Rates and Shipping's Carbon Emissions?." In Sustainable Logistics and Strategic Transportation Planning, edited by Tomaž Kramberger, Vojko Potočan, and Vesna Mia Ipavec, 148-164. Hershey, PA: IGI Global, 2016. https://doi.org/10.4018/978-1-5225-0001-8.ch007

Export Reference

Mendeley
Favorite

Abstract

This chapter aims to assess the impact of bunker fuel price changes on spot freight rates for shipping coal, by estimating relevant elasticities using a top down approach. Monthly time series data drawn from Clarkson's Shipping Information Network revealed a breakpoint in late 2004 defining two distinct phases. Ordinary least squares modelling revealed low elasticities in a relatively stable market from 1991-2004 and high elasticities in a volatile market from 2005-2012. Knowledge of relevant elasticities inputs to effective global management of for example shipping's atmospheric emissions. Coking coal freight rates are more responsive to bunker prices than steam coal markets. In a volatile market, market based measures to reduce shipping's emissions which might include a bunker fuel levy, appear to have greater impacts on freight rates. However, complexities in the market environment frustrate effective policy formulation.

Request Access

You do not own this content. Please login to recommend this title to your institution's librarian or purchase it from the IGI Global bookstore.