Valuation mismatch and shipping q indicator for shipping asset management

ABSTRACT

This paper aims to develop an adaptation of the Tobin Q investment model for the shipping asset management in order to monitor valuation mismatch and bubble pricing of shipping assets. In this circumstance, the market prices of various shipping assets (e.g., Capesize or Panamax dry bulk carriers in different age profiles) are compared to the measured long-term asset value with second-hand ship prices. The mark-to-market prices of shipping assets are led by current market trends and freight rates, while the long-term asset value is estimated by using past data under certain assumptions (mean reversion, trend reversion). The discrepancy between market prices and the long-term nominal value of a shipping asset reflects any mispricing, which in turn sheds light on investment timing and market entry-exit decision.     

Maritime law issues related to the operation of unmanned autonomous cargo ships

The paper analyses the issue of unmanned autonomous ships from the perspective of international maritime law with a particular focus on crew related conventions and specifically SOLAS, STCW, and MLC. Our primary aim is to identify potential operational difficulties that could deter shipowners from investing or adopting the new technology. Our analysis indicates that there are several areas of ambiguity that would create impediments to a positive investment decision and deter shipowners from adopting the autonomous ship design. With these findings in mind, suggestions are put forward that could alleviate the problems identified.