Identifying shipowners’ risk attitudes over gains and losses: Evidence from the dry bulk freight market

Maria Giamouzi, Nikos K. Nomikos

Research output: Contribution to journalArticlepeer-review

3 Citations (SciVal)


This study examines the risk-return trade-off in the dry bulk freight market under different scenarios such as risk measures, risk attitudes and controlling for variables associated with the freight rate cycle. For long-term contracts, there exists a negative association between risk and return, suggesting that shipowners are willing to offer a discount on time-charter rates over spot rates to compensate for the loss of flexibility. Additionally, shipowners are not uniformly risk averse, as finance theory suggests, since their utility functions are concave (risk-averse) for losses and convex (risk-seeking) for gains.

Original languageEnglish
Article number102129
JournalTransportation Research Part E: Logistics and Transportation Review
Early online date10 Dec 2020
Publication statusPublished - 31 Jan 2021

Bibliographical note

Funding Information:
The authors would like to thank the Co-Editor in Chief (Professor Qiang Meng), the Associate Guest Editor (Professor Manolis Kavussanos), three anonymous reviewers, and also participants of the International Association of Maritime Economists (IAME) Conference, Athens, Greece, 2019 for their constructive comments and suggestions. This research was partly conducted when the first author was a Research Fellow at the London School of Economics.

Publisher Copyright:
© 2020 Elsevier Ltd

Copyright 2020 Elsevier B.V., All rights reserved.


  • Dry Bulk freight market
  • Prospect Theory
  • Risk preferences
  • Risk-Return relationship
  • Utility functions

ASJC Scopus subject areas

  • Business and International Management
  • Civil and Structural Engineering
  • Transportation


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