Proceedings of The 2nd International Conference on Applied Research in Business, Management and Economics
Effects of the Covid-19 on the Marine industry: Evidence from the ten major marine companies
Alexandros Pasiouras and Theodoros Daglis
The Covid-19 pandemic has caused many economic problem on the Marine industry. More precisely, the lockdown measures, the total suspension of the Marine activity and the disruption of the Marine field have led to the severe impact on the Marine corporations globally. In this paper, we examine some of the biggest Marine companies’ stocks, namely the Dynangas (DLNG), Euronav (EURN), Euroseas (ESEA), Frontline (FRO), Nordic American Tanker (NAT), Scorpio Bulkers (SALT), Sino-Global Shipping (SINO), Teekay Tankers (TNK), Tsakos Energy Navigation (TNP), Torm (TRMD) during the Covid-19 spread and the lockdown measures. Using relevant time series specifications, we establish a Bayesian framework to unveil the effect of the Covid-19 pandemic on these stocks. Based on our findings, the stocks were affected by the Covid-19 spread and more precisely, the Covid-19 spread provides useful information for the predicting and forecasting of these stocks. Our findings are robust, since the out-of-sample forecasting accuracy of the alternative model employed, that explicitly incorporate the pandemic induced by the SARS-COV-2 virus, is superior to the baseline model.
Keywords: COVID-19, maritime, stocks.