@article{ART003197579},
author={Sangseop Lim and Seokhun Kim},
title={Exploring the long and short-term equilibrium of PCTC charter rates with VECM},
journal={Journal of The Korea Society of Computer and Information},
issn={1598-849X},
year={2025},
volume={30},
number={4},
pages={161-168},
doi={10.9708/jksci.2025.30.04.161}
TY - JOUR
AU - Sangseop Lim
AU - Seokhun Kim
TI - Exploring the long and short-term equilibrium of PCTC charter rates with VECM
JO - Journal of The Korea Society of Computer and Information
PY - 2025
VL - 30
IS - 4
PB - The Korean Society Of Computer And Information
SP - 161
EP - 168
SN - 1598-849X
AB - This study employs VECM to explore the dynamic relationships among PCTC charter rate, LIBOR, car trade volume, and Dubai oil prices. Johansen cointegration confirms a long-term equilibrium, while VECM shows freight rates are suppressed by interest rates and oil prices but supported by trade volume. IRF reveals freight shocks strongly affect itself and interest rates, with temporary oil price impacts and minimal trade volume response. FEVD indicates 77% of freight variance is self-driven, 12% from interest rates, 10% from trade volume; interest rates rely 36% on freight, trade volume 53% on oil prices, and oil prices 94% on itself. This highlights complex cost-demand interactions in shipping, offering practical insights.
KW - PCTC charter rate;VECM;long-term equilibrium;IRF
DO - 10.9708/jksci.2025.30.04.161
ER -
Sangseop Lim and Seokhun Kim. (2025). Exploring the long and short-term equilibrium of PCTC charter rates with VECM. Journal of The Korea Society of Computer and Information, 30(4), 161-168.
Sangseop Lim and Seokhun Kim. 2025, "Exploring the long and short-term equilibrium of PCTC charter rates with VECM", Journal of The Korea Society of Computer and Information, vol.30, no.4 pp.161-168. Available from: doi:10.9708/jksci.2025.30.04.161
Sangseop Lim, Seokhun Kim "Exploring the long and short-term equilibrium of PCTC charter rates with VECM" Journal of The Korea Society of Computer and Information 30.4 pp.161-168 (2025) : 161.
Sangseop Lim, Seokhun Kim. Exploring the long and short-term equilibrium of PCTC charter rates with VECM. 2025; 30(4), 161-168. Available from: doi:10.9708/jksci.2025.30.04.161
Sangseop Lim and Seokhun Kim. "Exploring the long and short-term equilibrium of PCTC charter rates with VECM" Journal of The Korea Society of Computer and Information 30, no.4 (2025) : 161-168.doi: 10.9708/jksci.2025.30.04.161
Sangseop Lim; Seokhun Kim. Exploring the long and short-term equilibrium of PCTC charter rates with VECM. Journal of The Korea Society of Computer and Information, 30(4), 161-168. doi: 10.9708/jksci.2025.30.04.161
Sangseop Lim; Seokhun Kim. Exploring the long and short-term equilibrium of PCTC charter rates with VECM. Journal of The Korea Society of Computer and Information. 2025; 30(4) 161-168. doi: 10.9708/jksci.2025.30.04.161
Sangseop Lim, Seokhun Kim. Exploring the long and short-term equilibrium of PCTC charter rates with VECM. 2025; 30(4), 161-168. Available from: doi:10.9708/jksci.2025.30.04.161
Sangseop Lim and Seokhun Kim. "Exploring the long and short-term equilibrium of PCTC charter rates with VECM" Journal of The Korea Society of Computer and Information 30, no.4 (2025) : 161-168.doi: 10.9708/jksci.2025.30.04.161
