The market for second-hand ships: Further results on efficiency using cointegration analysis

This paper examines the dynamic behaviour of second-hand prices of tankers and dry-cargo vessels over various time periods, with a view to determining whether or not the markets for such assets are efficient. It extends and re-analyses the results of an earlier study by Hale and Vanags, published in this journal in 1992. Using a more modern method of testing for cointegration, it is shown that both the tanker and dry cargo markets appear to be cointegrated, a fact which would suggest that these markets are inefficient. It is suggested that the existence of cointegration does not necessarily imply market inefficiency, if the factors that create the common trends are themselves stochastic in nature. With this in mind, it is argued that the evidence put forward in this paper is still consistent with market efficiency in the long run.     

Protecting Rhode Island's coastal salt ponds: An economic assessment of downzoning

Abstract

In southern Rhode Island, there is growing concern that housing and recreational demands will soon overwhelm the capacity of the coastal salt ponds to absorb wastes, produce seafood, and maintain scenic qualities. As a result, coastal towns have been studying the feasibility of using land controls such as downzoning to protect these coastal amenities. The paper presents an economic analysis of the downzoning program proposed in the town of South Kingstown. Hedonic price and contingent valuation methods are used to value coastal amenities. The estimated net present value of “swimmable” water is shown to be $3.1 million.     

Conditional modelling of tanker market risk using route specific freight rates

This paper provides statistical evidence in support of the view, widely held in the tanker industry, that there are systematic differences in the degree of risk involved in investing in tankers of different sizes, and in operating tankers in spot and time charter markets. The industry view, broadly supported by the results of this paper, is that larger vessels are 'risker' assets than smaller vessels, and operating vessels in the time-charter market is less risky than employing them on a spot basis. The results are obtained by using a method derived from the financial economics literature, which models both the conditional mean and variance of a variable, known as GARCH modelling. Only one other paper has applied this method to the tanker market, and these results provide confirmatory support of those findings.     

Development of a Human Use Objectives Framework for Integrated Management of the Eastern Scotian Shelf

Under the 1997 Oceans Act, Fisheries and Oceans Canada (DFO) is required to lead and facilitate the development of integrated management plans for Canada's oceans. One of the integrated management projects is the Eastern Scotian Shelf Integrated Management Initiative (ESSIM), through which DFO is working with a range of stakeholders to develop and implement an integrated ocean management plan for the eastern Scotian Shelf. As part of this Initiative, DFO has undertaken a program to develop a set of objectives and related indicators for ocean management. This includes the development of a framework, objectives, and indicators for human use of the resource including the social, economic, and institutional (governance) components of ocean management, areas that have received little attention internationally. This article provides some background to ESSIM and human uses of the resources of the eastern Scotian Shelf; briefly reviews objectives-based management and human use objectives internationally; outlines the process undertaken to develop the Human Use Objectives Framework; presents the resultant objectives and indicators that were developed; and highlights some of the lessons learned and challenges for their implementation.     

Book reviews of Maritime Transport. Edited by M ary R. B rooks,K enneth B utton and P eter N ijkamp (Cheltenham UK: Edward Elgar, 2002) [Pp. 553] £150.00. ISBN 1 84064 552 0

Using the extended task-technology fit (TTF) model, this paper investigates how certain factors (e.g. task characteristics, technology (i.e. intranet) characteristics, middle managers’ demographic characteristics, task-technology fit, and perceived usefulness and usage) affect the port middle managers’ job performance. Numerous organizations in the port industry constitute the population of interest. The preliminary results suggest that the majority of middle managers believe that intranet could improve their job performance. The results from the structural equation modelling (SEM) indicate that task characteristics and intranet characteristics significantly justify their variance on task-technology fit. However, demographic variables do not predict task-technology fit. Perceived usefulness is found to be a predictor of intranet usage. Task technology fit, on the other hand, significantly predicts usage and explains the variance on middle managers’ job performance. This study is the first study to investigate the effects of intranet usage and managerial performances in an integrative perspective, taking into account various user acceptance models and users’ demographic characteristics.     

The econometric testing of investment incentives: A cointegrated approach

Thie paper re-examines the link between shipping investment and investment incentives, first explored in this journal by Marlow, and subsequently developed by mcWilliams et al. in the July–September issue. Examination of the ststistical properties of the data reveals that some of McWilliams' results may be flawed. A modified version of the Marlow model is estimated. checking for statistical and economic consistency, using cointegration, checking for statistical and economic consistency, using cointegration techniques. The estimated model resolves marlow's original challenge, but does not appear to be as robust as could be wished.     

Regression modelling of the employment durations of UK seafaring officers in 1999

This paper presents the results of an econometric analysis of the duration of voyages undertaken by NUMAST deck and engineer officers in 1998-1999. Earlier papers examined the employment profile of the officers, and compared voyage patterns across organization type, company nationality, flag of registry, and ship type. Analysis of the various cross-tabulations of employment duration appeared to show that the key driver is ship type. Using regression analysis, it is shown that ship type does indeed have a significant influence on duration, as does ship size. Flag, organizational type and company type were all found to be statistically unimportant.