Abstract

This study investigates shock transmission and interconnectedness within maritime stock indices and energy returns, aiming to provide insights into the dynamics of financial networks. The research spans several periods, including pre-Covid-19, during the pandemic, and the Russia-Ukraine conflict. Key objectives include identifying consistent net transmitters and receivers of shocks and assessing the overall interconnectedness of these markets. Methodologically, the study employs a financial network analysis, focusing on the Total Connectedness Index to quantify the extent of interconnectedness. Data is collected across different periods to capture variations and trends in shock transmission. Key findings reveal that Generail (Gen) and Ardagh (Ard) consistently act as net transmitters of shocks, underscoring their pivotal roles in the maritime sector. Conversely, certain markets and energy commodities are identified as net receivers, indicating their vulnerability to external influences. The Total Connectedness Index attributes 17.76% of forecast error variance to shock transmission, illustrating the complexity of the financial network. Notable shifts are observed pre-Covid-19, with heightened interconnectedness during the pandemic. During the Russia-Ukraine conflict, Genco remains a primary net transmitter, while energy commodities emerge as significant net receivers. The implications of these findings highlight the need for further exploration of the underlying factors contributing to shock transmission and the development of adaptive strategies. Additionally, extending the analysis to various geopolitical events is recommended to gain a comprehensive understanding of vulnerabilities within the maritime and energy sectors.