DETERMINING THE FAIR VALUE FOR DRY BULK CARRIERS’ VALUATION IN ECONOMIC CYCLES

Abstract

Since it is necessary to use different mathematical methods to estimate the supply-demand balance due to the instability caused by the economic crisis and the volatility of the market, it is misleading to determine ship valuation using a market approach. In this study; considering the short-wave theorem of Kitchins, Juglars and Kuznets and the long-wave theory of Kondratieff, fair value calculation was made for dry bulk carriers over a certain time interval. In this context, it has been determined the amount of deviation during the S&P decision making processes for second hand dry bulk carriers. Within this framework, a model able to provide decision making support to maritime companies is presented