Some 85% of the dry FFA market is traded on the Baltic Exchange’s Capesize, Panamax, Supramax and Handysize Time Charter average indices, with 15% traded on the individual routes:
Voyage routes as less commonly traded compared to the Time Charter averages indices, however the most popular are P2A,C5, C7 and P3A.
Capesize FFAs are the segment within the freight derivative family of products that provide arguably the best indicator of overall market direction.
Panamax FFAs are the most widely traded product within the freight derivatives marketplace.
The Handysize is the smallest but most common vessel in the dry bulk sector.
Supramax derivatives provide an effective mechanism for major and minor bulk shipping market participants for managing exposure to the volatile in freight rates in smaller vessel classes.