Methodology

 

The course is presented through a mixture of lectures, presentations, group discussions, case studies and computer-based exercises. Full and comprehensive study notes will be provided which will offer a valuable source of reference during and after the course.

 

Who should attend?

 

This course is designed to be taken either as a stand alone by more experienced freight derivative traders or as a follow-on to the Freight Derivatives & Shipping Risk Management course.

 

Dates: 2017

 

8-9 March 2017 (London)
5-6 April 2017 (New York)
5-6 July 2017 (Singapore)
11-12 October 2017 (London)

 

Cost: £1475

 

Please note that UK VAT is applicable to courses held in UK. Discounts for multiple bookings are available on request.

Advanced Freight Modelling & Trading

Overview

This advanced two day module focuses on modelling freight rate dynamics and pricing options on freight. It discusses issues which are relevant to shipping market practitioners such as constructing forward curves on freight, modelling freight rate volatility as well as hedging and trading strategies using freight options.

The course aims to provide delegates with both a theoretical foundation as well as practical hands-on experience.

The course is delivered as a mixture of lectures and workshops by two of the shipping industry’s most respected academics.

This course is aimed at a range of individuals including, shipping company executives, freight derivative brokers, market analysts, commodity traders with an active exposure to freight as well as financial market players who want to know more about the complex freight markets.

Participants will come away from the course with a thorough understanding of how to model the physical freight market and use options on freight.

Whether you run a trading desk, are a risk manager, trade FFAs or invest in the shipping markets, the level of complexity you face is growing day by day. Understanding how to measure and manage freight rate volatility and explore the options available to the shipping professional are becoming increasingly important. As the freight derivatives market grows in sophistication, so does the range of strategies used by owners, charterers and traders.

 
Course leaders
Prof. Amir Alizadeh           
Centre for Shipping, Trade & Finance
Cass Business School

 Prof. Nikos Nomikos
Centre for Shipping, Trade & Finance

Cass Business School
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The course leaders, Prof. Amir Alizadeh and Prof. Nikos Nomikos of Cass Business School, are both internationally recognised academics in the fields of shipping and commodity finance, and risk management. Their theoretical and applied research work has been published in leading academic and professional journals and they also provide consultancy services to the industry on different aspects of commodity and shipping risk management.

 
 
The class was just what I was looking for, fundamental tech analysis paired with volatility formulation, glad I was able to attend. Brian Houst, Director Freight, Dome Chartering
 
 
 

Syllabus

 

Day One

Introduction to the Freight Market
-    Freight contracts
-    Characteristics of the freight market
-    Relationship between spot and time-charter freight rates

Forward Freight Agreements (FFAs)
-    Practicalities of trading
-    Hedging & trading examples

Spot Price Dynamics
-    Mathematical models for freight rates
-    Mean reversion, seasonality & jump diffusion models
-   Estimating & setting up models

Forward Curves
-    Forward curve construction

Technical Analysis & Freight Trading
-    Chart analysis
-    Technical trading rules
-    Spread trading
-    Implied TC rates

Risk Management Using Options
-    Freight options
-    Hedging with options
-    Option trading strategies

 

Day Two:

Modelling Freight Rate Volatility
-    Volatility models: historical, time varying and implied
-    Estimation & interpretation
-    Forecasting volatility

Pricing Freight Options 
-    Determinants of options prices
-    Pricing Asian options using closed-form models
- Monte Carlo Simulation

Real Options in Shipping
- Key option value drivers
- Different types of real options
- Option to choose (spot vs t/c)
- Option to lay-up
- Real options & ship valuation
- Real options & extended Net Present Value
- Identifying & valuing real options in shipping

Writing and Risk Management of Option Positions
-    Option price sensitivities (Greeks)
-    Dynamic & static Delta hedge
-    Delta-Gamma hedging
-    Greeks of Asian options

Value at Risk of Shipping Freight Rates
-    Estimation & interpretation

 

Terms and conditions

The Baltic Exchange must be in receipt of full payment prior to the day of the training course or your nominated delegate(s) may not be
allowed entry to the event. Cancellations 14 days prior to the event will be refunded at 50% of the delegate fee. Cancellations within 14 days cannot be refunded. All cancellations must be received in writing.

Names of delegates may be changed at any time without charge and notification of name changes should be made in writing. Registration fees include lunch and refreshments and course notes.

 

Further questions

Please contact Bill Lines on: 
Tel:  +44 (0)20 3326 8460
Email:  blines@navigatepr.com

 
 

Booking form

For multiple bookings please contact Bill Lines. E: blines@navigatepr.com or +44 (0)20 3326 8450

 

For single bookings please use the online form below:

 

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Advanced Freight Modelling & Trading Booking Form

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Previous Attendees

Run since 2007, this course has been attended by a huge range of shipowners, charterers, brokers and financial institutions with an exposure to the bulk shipping markets. These include:

A.P. Moller - Maersk
ACM/GFI
AET UK
Alfred C Toepfer International
AM Nomikos
Aquila Maritime Management GMBH & CO KG
Archer Daniels Midland
AS Klaveness Chartering
Augustea Shipping Services
AWB Ltd
AWB Singapore
Axiom Shipping
B+H Ocean Carriers
BHP Billiton
BMT Asia Pacific
BP Shipping
Braemar Seascope
Bravo Futures
Bunge
C Transport Maritime
Calyon
Canadian Forest Navigation
Cargill International
Cementia Trading
Chevron Global Supply and Trading
Chevron USA Inc
Constellation Energy

Craigs Containers
Crossbridge Shipping Singapore
DC Energy
DnB NOR Markets
DS Norden
DVB
DVB Transport (US)
ED & F Man Shipping
Embiricos Shipbrokers
Enel Trade
Erria
Essent Trading International
Euronav (UK)
Gearbulk UK
General Maritime
Gestion Maritime
GFI Brokers
Glencore
Grain Pool Pty Ltd
Heidmar
HF Navigator
Howe Robinson
HSBC Athens
HSH Nordbank
IMC Shipping Co
Imerys
Inge Steensland
Pinguino Research

International Shipping & Logistics
Island View Shipping
Ispat Industries
Jebsen Management
Kardeniz & Mardeniz
KC Maritime
Koch Carbon
LCH. Clearnet Group
M2M Management
Macquarie Bank
Maritime and Port Authority of Singapore
MF Global UK
Midship Marine
Mitsubishi UFS Securities
Mitsui & Co Europe
Morgan Stanley
Navios Corporation
Nidera Handelcompagnie
Noble Resources
Nordea
Norden Derivatives
Oldendorff Carriers
Openlink International
Pacific Basin Shipping
Petrochina International America
Phaethon Intl.

Rio Tinto Shipping
Rusal Marketing
RWE Supply & Trading
SAIGAL SEATRADE MUMBAI
Scanmills
Shell
Sims Metal Management
SK Shipping Co., Ltd.
Sono Shipping LLC
Southern Star Shipping
Sovcomflot (UK)
SSY Futures
ST Shipping & Transport Pte Ltd
Standard Chartered Bank
Stena Bulk
T-Bulk
Tata NYK Shipping
Teekay Tanker Services
The Great Eastern Shipping Co
Thenmaris (Ships Management) Inc
Thoresen & Co., (Bangkok) Ltd.
Totsa - Total Oil Trading SA
UBS
Western Bulk Carriers
Worldscale
Phoenix Bulk Carriers (US)

Baltic Exchange Ltd., St Mary Axe, London, EC3A 8BH
Registered in England Number 64795
Tel + 44 (0) 20 7283 9300, Fax + 44 (0) 20 7369 1622.
Calls to Baltic Exchange staff are recorded
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