FFABA ISSUES REVISED CONTRACT FOR FREIGHT FUTURES INDUSTRY
The Forward Freight Agreement Brokers' Association (FFABA) has updated the standard contract used by the freight futures industry. The revised contract will strengthen the positions of injured parties in the event of a default.
FFABA chairman, Mark Richardson, commented:
" This revised contract is part of the FFABA's drive to standardise the freight derivatives industry and follows extensive consultation with brokers and principals. Thanks to this contract there will be greater clarity of the legal position of all involved."
He added:
"I would like to extend particular thanks to Brian Perrott of Hill Taylor Dickinson for his legal guidance in drawing up this new and improved document."
ENDS
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Note to editors
The FFABA, comprising Baltic Exchange derivatives brokers, was established in 1997. Its objectives include: the promotion of high standards of conduct; the development and promotion of standard contracts; and developing the use of other over-the-counter (OTC) and Exchange-traded derivative products.
The Baltic Exchange is the world's only self-regulated shipping market maintaining professional standards, resolving disputes and providing market information. It is the world's largest shipbroking market and its members handle some 30 per cent of all dry cargo fixtures and 50 per cent of crude oil fixtures. More than half the world's new and second hand tonnage is bought and sold by Baltic members in a market which, according to Clarkson's Research, was worth around US$34 billion in 2000.
Commissions from chartering and sale and purchase in 2001 amounted to more than US$½ billion.
The Baltic Exchange is the only source of independent, quality freight market data. Information collected from a number of major shipbrokers around the world is collated and published daily. The Exchange publishes the following daily indices: the Baltic Panamax Index, Baltic Capesize Index, Baltic Handymax Index, and the Baltic International Tanker Routes - clean and dirty. The Exchange also publishes a daily dry cargo fixture list and a market commentary.
