War conflicts and how they affect the freight markets
View/
Keywords
War ; Freight market ; Shipping ; Freight levelsAbstract
The aim of this Master thesis is to provide analysis of the changes occurred in the
shipping freight market due to war. Although shipping is driven by the demand-supply
mechanism, it is also a sector affected by the global current affairs and unforeseen
events like the war. The present Russia-Ukraine war is of much interest since on the
one hand oil is one of the most demanded goods and on the other hand Russia is one of
the major oil exporting countries. For the purpose of this thesis, we investigated the
fluctuations in the Baltic Exchange indices of various shipping routes for the months
after the outbreak of the Russia-Ukraine war. Comparing the prices to those of the
previous years it was found out that the war had indeed impacts on the oil shipping
sector due to a variety of causes, especially to the routes involving directly Russia as a
load port.