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%

Forward Freight Agreements (FFAs)


What are Forward Freight Agreements (FFAs)?



Forward Freight Agreements (FFAs) offer ship owners, charterers and traders a means of protecting themselves against the inherent volatility in the charter market.

Trading FFAs entails taking a position in a futures (paper) market as a substitute for a forward cash (physical) transaction.

"FFAs are easy to fix and close out which allows profit-taking and better cash management."


Contracts will normally be based on the terms and conditions of the Forward Freight Agreement Brokers Association and the International Swaps and Derivatives Association.

Forward Freight Agreements (FFAs) Market Index