Transportation Research Part E: Logistics and Transportation Review is on level 3 in the ABS Academic Journal Guide.

Ådland, Roar Os, and Amir Alizadeh: Explaining price differences between physical and derivative freight contracts, Transportation Research Part E: Logistics and Transportation Review, 2018, 118, 20-33, Online 26.07.2018.

Abstract

Physical time-charters (TC) and Forward Freight Agreements (FFAs) represent two hedging approaches that differ in terms of risks and physical access to transportation. We investigate the determinants of the time-varying TC-FFA freight rate differential in the dry bulk market. We find that TC and FFA prices are co-integrated but TC rates are generally priced higher than FFAs. The differential is explained by the level and slope of the term structure, a measure of economic condition and default risk as well as vessel specifications and contractual terms. Finally, the TC-FFA differential is related to default risk premium and the potential convenience yield.

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