In the past few decades, the market environment of the liner shipping industry has changed. The most important changes are in market power and regulation, such as the Shipping Act of 1984 and the Ocean Shipping Reform Act of 1998 in the United States. We estimate and draw the time-varying...

We focus on non-storability, a characteristic of shipping freight that leads to an enormous gap between the widely-used no-arbitrage pricing theory and shipping freight derivative markets. Our main contribution is to modify and generalize the Bessembinder and Lemmon (2002) model. Equilibrium...