Risk Analysis And Insurance Strategies Of Dry Bulk Carrier Company

The risks that dry bulk carrier face have always attracted the attention of bulker operators. Market risk is an important factor in formation of transportation policy and it affects the ship owners'cash flow. To understand the market risk is crucial for dry bulk carrier and investors to grasp the dynamic of international bulk market. The VAR model is an important type of time-series model and has already been widely used to model economic and financial time-series data. This thesis applied it in international bulk freight market to explore the rules and reason of market risk and maked a concise assessment. This thesis is structured as follows:Firstly, it started with a brief analysis of dry bulk carrier companies and then qualitatively investigated their operating mode, supply and demand, the status of freight, so as to analyze dry bulk carrier companies from multi-angle qualitatively.Secondly, it identified and calculated the market risk of dry bulk carriers. To begin with, it analyzed the risk performances of the dry bulk carrier companies and divided varieties of risks into systematic risk and non-systemic risk. It collected the data of four kinds of vessels and described the bulk freight rate series in four sub-markets depending on vessel types, so as to grasp the overall basic characteristics of the bulk shipping market. The widely used VAR model was introduced, and then was applied to solve market risk of three kinds of dry bulk carriers. The reasons why the values of three market risks were different were listed.Thirdly, it introduced insurance to avoid the risk of dry bulk carrier companies, accidents and insurance claims and then illustrated details and results of the insurance applied in the international dry bulk accident claims.Finally, On the basis of problems of insurance industry, the general conclusions of the thesis are presented. Conclusions and suggestions were made for business practitioners and academic researchers.