DEFINE THE INFLUENCE OF THE VOLATILE FUEL PRICE ON THE FREIGHT OF DRY BULK SHIPPING

Abstract

This research aims to explore the impact of fuel price on the dry bulk shipping freight over the last few years. The volatility of fuel price recently has significantly contributed to the uncertainty of freight market. The paper first reviewed the literature to define the importance of fuel cost in the shipping industry. Afterward, we applied the simple regression model using the data from week 01/2018 to week 18/2020 and discovered the significant positive relationship between bunker fuel price and the dry bulk shipping freight. Further discussion of how current global issues influence the fuel price and freight market were provided accordingly.