The interplay between multifractal characteristics and seasonal fluctuations within the LNG spot freight rates

Author:

Chen Feier1,Yin Shuo1,Zhang Jiahang2

Affiliation:

1. Shanghai Jiao Tong University

2. Shanghai University of Finance and Economic

Abstract

Abstract

This research delves into the complex dynamics of liquefied natural gas (LNG) spot freight rates, exploring the interplay between multifractal characteristics and seasonal fluctuations within the market. By examining the time series data of LNG spot freight rates for vessels with a capacity of 160,000 cubic meters over a period from December 17, 2010, to December 17, 2023, the study employs multifractal detrended fluctuation analysis (MF-DFA) and multifractal detrending moving average (MF-DMA) techniques to quantify the multifractal dimensions and assess the impact of seasonality on market behavior. The findings reveal a nuanced relationship between the market's inherent complexities and its response to external factors such as geopolitical events and the COVID-19 pandemic, providing valuable insights for stakeholders in the LNG industry and beyond.

Publisher

Research Square Platform LLC

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