Capesize

13750

May-17
450.00 3.38%

Panamax

8300

May-17
-200.00 -2.35%

Iron Ore

61.5

May-17
-0.50 -0.81%

Sing 380

292.65

Jun-17

Coking Coal

177

May-17
1.00 0.57%

Nola Urea

172

May-17
3.00 1.78%

Dry Freight Market


The Freight Market



Changes in the freight market, including the increased use of index pricing reflecting higher volatility in freight rates have made the use of freight derivatives more important than ever.

Current market conditions and a focus on cost saving only heighten the need for effective risk management strategies.

The FFA Market

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

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 Capesize FFAs are the segment within the freight derivative family of products that provide arguably the best indicator of overall market direction.
  • Panamax FFAs Panamax FFAs are the most widely traded product within the freight derivatives marketplace.
  • Handysize FFAs The Handysize is the smallest but most common vessel in the dry bulk sector.
  • Supramax FFAs 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.

Forward Freight Agreements (FFAs) Market Index