Introduction The paper explains how shipping markets are organised and investigates the volatility of Efficient Market Hypothesis alongside Rational Expectations in the formation of dry bulk ship prices over a given period of time. Multiplicity of plausible explanations demonstrates how prices are estimated based on market cycles, how they service depression and what influenced ship design. It also employs market efficiencies such as the orthogonality and unpredictability of excess returns on investments and performs tests based on Autoregressive models, a methodology applicable to real assets with limited economic life. Results obtained in this research indicate that prices for newbuilding and second hand vessels are not determined by their efficiency but rather triangulated on various factors. It’s also evident that failure of the Efficient Markets Hypothesis in determination of ship prices are triggered by the existence of time-varying risk premia, which links excess returns to investors. All these variations are modelled through General Autoregressive Conditional Heteroscedasticity (GARCH) models linked to both newbuilding and second hand market of shipping investments. Secondly, the paper investigates the existence nature of seasonality in terms of shipping cycles in freight markets and compare and measure them across different sectors under different market conditions for an extended period of time. The existences of different seasonalities indicate helps to record increases or decreases in shipping rates at a certain period which vary across different markets depending on vessel size and market condition. To arrive of conclusive results on seasonal analysis, we use Stopford’s theory to reveal the seasonal rate movements which brought brings us to the conclusion that seasonal movement rates are more pronounced in a recovering market compared to small changes when the markets are falling. In terms of dry bulk freight markets, seasonality depends on vessel size and duration of the contract. It’s therefore important to note that shipping markets are greatly determined by seasonal variations and different in vessel sizes are eliminated as the contract duration increases. Shipping operations are also affected by timing of dry-docking, chartering strategies, freight rates hedging activities and switching between sectors. Still on seasonality change, dry bulk rates are measured and compared across different freight rates of different vessels like the Panamax, contract duration and market conditions such as the peaks and the troughs. The average freights rates were reported to have been varying from 18.2% to 15.3% within individual months of a given year. It’s also realised that seasonality declines as the contract duration rises and larger vessels are bound to reveal larger higher seasonal variations compared to smaller ones. The paper also examines the dynamics of conditional volatilities in dry markets for second hand ships. Models were used to compare volatility estimates between different size vessels in a given month, and for this case, Autoregressive Conditional Heteroskedasticity (ARCH) was used. We therefore find that vessels of larger ships are more volatile than smaller ones and to this we conclude that the nature of vol