We study the returns to owning dry bulk cargo ships. Ship earnings exhibit a high degree of mean reversion, driven by industry participants' competitive investment responses to shifts in demand. Ship prices are far too volatile given the mean reversion in earnings. We show that high current ship...

We study the returns to owning dry bulk cargo ships. Ship earnings exhibit a high degree of mean reversion, driven by industry participants' competitive investment responses to shifts in demand. Ship prices are far too volatile given the mean reversion in earnings. We show that high current ship...

This study uses an activity-based method to investigate the fuel consumption and corresponding CO2 emissions of Capesize, Panamax, Supramax, and Handysize dry bulk carriers. The emission and energy reductions are estimated for speed reductions of 10%, 20%, and 30%. The CATCH (cost of averting a...