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


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 - Jan 2021


  • 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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