Investigating the relationship between EEXI, CII and vessel values in the oil tanker and dry bulk carrier sectors

Lu, Pin-Hsuan and Theocharis, Dimitrios 2024. Investigating the relationship between EEXI, CII and vessel values in the oil tanker and dry bulk carrier sectors. Presented at: International Association of Maritime Economists (IAME) 2024, Valencia, Spain, 26-28 June 2024.

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Abstract

This paper examines the effect of Carbon Intensity Indicator (CII), Annual Efficiency Ratio (AER), and Energy Efficiency Existing Ship Index (EEXI) on second-hand ship prices. The relationship between these indices and vessel values is investigated, using unique data from sales transactions of Aframax and Handymax tankers, and Handysize bulk carriers between 2020 and mid-2023 obtained from VesselsValue. Hypothesis testing is conducted and hedonic price regression models are used to examine the relationship between energy efficiency and ship values. The results suggest that second-hand ships are priced differently in the secondhand market, depending on their CII rating. The AER and EEXI are significant determinants of ship prices with varying elasticities, depending on the ship type. Ship prices with lower EEXI and AER are valued higher and vice versa. These findings are important for industry stakeholders in the maritime sector and policy makers of environmental regulations in shipping.

Item Type:	Conference or Workshop Item (Paper)
Status:	In Press
Schools:	Business (Including Economics)
Date of First Compliant Deposit:	22 July 2024
Last Modified:	24 Jul 2024 15:45
URI:	https://orca.cardiff.ac.uk/id/eprint/170829

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