News Column

New Findings Reported from World Maritime University Describe Advances in Transportation Logistics (Economic spillovers between related derivatives...

September 13, 2014



New Findings Reported from World Maritime University Describe Advances in Transportation Logistics (Economic spillovers between related derivatives markets: The case of commodity and freight markets)

By a News Reporter-Staff News Editor at Journal of Transportation -- Data detailed on Transportation Logistics have been presented. According to news reporting out of Malmo, Sweden, by VerticalNews editors, research stated, "Extant literature investigates volatility spillovers between spot markets of the same asset class or between derivatives and their underlying spot markets. This paper investigates economic spillovers between the freight and commodity derivatives markets."

Our news journalists obtained a quote from the research from World Maritime University, "The economic relationship tested links the derivative price of the commodity transported with the derivative price on the freight rate. High frequency data on commodities are synchronised with freight data and freight rates of different vessels are matched with portfolios (baskets) of commodities that these vessels carry. The investigation of various types of commodities transported under different types of freight contracts reveal that in most cases new information appears first in the returns and volatilities of the commodities futures markets, before it is spilled over into the freight derivatives markets. Thus, agricultural commodity futures informationally lead the freight markets."

According to the news editors, the research concluded: "The results can help improve the understanding of the information transmission mechanisms between freight and commodity markets."

For more information on this research see: Economic spillovers between related derivatives markets: The case of commodity and freight markets. Transportation Research Part E-Logistics and Transportation Review, 2014;68():79-102. Transportation Research Part E-Logistics and Transportation Review can be contacted at: Pergamon-Elsevier Science Ltd, The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, England.

Our news journalists report that additional information may be obtained by contacting M.G. Kavussanos, World Maritime Univ, SE-20124 Malmo, Sweden. Additional authors for this research include I.D. Visvikis and D.N. Dimitrakopoulos.

Keywords for this news article include: Malmo, Sweden, Europe, Transportation Logistics

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Journal of Transportation


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters