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?

 

The scope of this course is wide and its applications can be useful not only to shipowners, ship-operators, shipmanagers and shipbrokers, but also to those involved in ship finance activities, bunker suppliers, researchers, consultants and shipping funds investors.

 

Dates: 2016/2017

 

10-11 October 2016 (London)
6-7 March 2017 (London)
3-4 April 2017 (New York)
26-27 June 2017 (Singapore)
9-10 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.

Freight Derivatives & Shipping Risk Management

Overview

Shipping markets are becoming increasingly risky as fluctuations in freight rates and ship prices have increased substantially in recent years. This calls for prudent control of freight rates, ship values, bunker price, credit, foreign exchange and interest rate risks, which are all part of the shipping investment and day to day operating activities.

 

The aim of this innovative Shipping Risk Management course is to raise market awareness of risks involved in shipping businesses and how various physical and derivatives instruments can be used to control such risks efficiently and effectively.

The module is delivered over two days by experts in the areas of shipping and commodity risk management. Using a variety of real life examples, the course demonstrates how risk can affect cash flows from operating activities along with an in-depth analysis of theoretical and practical aspects of risk management instruments in shipping. 
By attending this course participants will learn how to analyse and measure the impact of financial risks involved in shipping investment and operations, and how to select and execute effective strategies to minimise or eliminate such risks, stabilise their cash flow and maximise the return on investment more efficiently.

 
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.

 
 
This course, through its knowledgeable instructors, delivers an invaluable understanding of the critical, yet often under-utilised function of risk management as it pertains specifically to the various aspects of the maritime sector. Kyle L. Young, Bunker Manager, Heidmar
 
 
 

Syllabus

 

Day one


Introduction to shipping risk

- Types of shipping contracts
- Sources of risk in shipping
- Market segmentation and sectoral differences
- Comparison of risk across different shipping markets

A primer on risk management

- Introduction to derivative instruments
- Forwards, futures, options & swaps- Exchange-Traded vs Over-the-Counter- Credit risk and clearing

Freight rate risk management

- Freight market information
- The practicalities of FFA trading
- Documentation and settlement
- Electronic trading
- FFA and hedging examples for spot, time-charter & tanker routes
- Exercise on freight risk management

Freight rate options

- Option terminology
- Using freight options for hedging
- Option trading strategies
- Freight options pricing


Day 2


Bunker risk management

- Bunker market fundamentals
- Importance of bunker risk management in shipping
- Use of bunker derivatives
- Forward bunker contracts: hedging and trading
- Options on bunker prices
- Exercise on bunker risk management

Financial risk management in shipping

- Interest rate risk
- Financing examples and sources of interest rate risk
- Instruments to manage interest rate risk
- Hedging interest rate risk using forwards and futures
- Interest rate caps, floors and collars
- Interest rate and currency swaps & swapations

Case study on shipping risk management

- Integrating all aspects of shipping risk
- Presentation of the case
- Using spreadsheets to solve the case
- Discussion

Ship price risk management


- Portfolio theory
- Diversification and risk-return optimisation
- Baltic Sale & Purchase Assessment, Baltic Demolition Assessment, Sale & Purchase Forward Agreements

Value at Risk (VaR) in shipping

- Estimating volatility - daily vs yearly
- Measuring and estimating VaR: single asset vs multi-asset portfolio
- VaR methodologies
- Examples of estimating VaR of FFA portfolios

Credit risk in shipping

- Probability of default vs loss given default
- How to measure credit risk: qualitative vs quantitative methods
- Credit risk and credit ratings
- Credit risk measurement in shipping
- Credit derivatives and credit risk management in shipping

 
 

Further questions

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

 
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Previous Attendees

Run since 2005, 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 Bilbrough & Co
Aalborg Portland
ABN Amro Futures
Aegean Baltic Bank
AET Tankers
AgriService
Alfred C Toepfer International
AM Nomikos
Amarante Shipping
Ammagi
Anglo American
Aquila Maritime Management
ArcelorMittal Treasury
Archer Daniels Midland
Arista Shipping
Augustea Shipping Services
AWB Ltd
AWB Singapore
Bank of Ireland
Bank of Nova Scotia
BHP Billiton
BHP Billiton Marketing Asia Pte
Bibby Line
BIMCO
BNP Paribas
BP
BP Shipping
Brave Maritime
Brunei Gas Carriers
Bulcom
Business Intelligence Group
Calyon Asia Shipfinance
Cape Tankers
Castalia Fund Management (UK)
CBH Group
CC Maritime
Chandris (Hellas)
China Navigation Co
Chinese Maritime Transport
Clarksons
Clipper Bulk
Clipper Group A/S
Coal & Oil Company
Commodities
ConocoPhillips International 
Constellation Energy
Conti Reederei
Copenship
Copersucar
CSAV Norasia Liner Services
CSL Asia Shipping
CSL International Inc.
D’Amico Dry
Dae Yang Shipping 
Dome Chartering
Drax Power
DVB Bank
Dynacom Tankers
Eastport Maritime
Eastern Bulk Carriers
EDF Trading
Eitzen Bulk
Electric Power Development Co
Emarat Maritime
Emirates Ship Investment Co 
Enel Trade
Energy Argus
Equinox Maritime
Excel Maritime Carriers
Fednav
Femis
Financial Conduct Authority
FinnFleet Tankers
Fitch Risk
Fokus Bank
Foresight
GE Transportation Finance
Genshipping
Gestion Maritime
Getax Ocean Trades
GFI-ACM
Glencore
Global Harvest Trading
Glory Ship Management
Golden Ocean Management
Great Eastern Shipping Co
Grindrod
Harmony Shipping
Heidmar
HF Navigator
Hochu Petroleum
Holbud
Holman Fenwick Willan Singapore
HSBC
HSH Nordbank
Hua Dao Shipping (The East)
Iino Shipping
Intermar
Ispat Industries
J. Lauritzen USA
Jiaotong University
John F Dilon
Klaveness Asia Pte Ltd

Kredittbanken ASA (Osloavd)
Laskaridis Shipping
Leros Management
Lykiardopulo
M2M Management
Maersk Tankers
Maritime 24
Maritime and Port Authority of Singapore
Masterbulk
McTaggart Shipping & Management
Mercator Lines (Singapore) 
Merrill Lynch Commodities
Midship Marine
Mitsui OSK Bulk Shipping (Europe)
Mitsui & Co
Mitsubishi Corp
Mittal Shipping
Motia Compagnia di Navigazione
MT Maritime Management
MUR Shipping
Murmansk Shipping
National Bank of Fujairah
Navico International
Newlead
Nexus Management
NIBC Bank
Nidera Handelscompagnie
Norden
Nordic Bulk Carriers
North of England P&I Assoc
NorthEdge Risk Services
Nuon
NYK Bulkship (USA)
Ocean Tankers
Oceania Impex
Odin Marine
Olam International
Oldendorff Carriers
OSG Ship Management
OW Bunker
Pacific Basin
Pacific Rim Shipping
Phoenix Bulk Carriers
Poten & Partners Inc
Prime Marine
PT BCA Tbk
Qawareb Ship Management
Quadra Commodities
RAG Trading
Redpath SugarReuters
Rio Tinto
Rio Tinto Shipping (Asia)
Royal Bank of Scotland
RWE
San Miguel Corporation
Scanmills
Scottish Power
Seasure Shipping
Seatrek Trans
SGX
Shell
Sims Metal Management
Singapore Exchange
Siva Bulk Shipping
SK Corporation
SK Shipping Co. Ltd
Sociedad Naviera Ultragas
Standard Chartered Bank
Statoil
Suek
Summit Maritime
Tailwind Shipping 
Taipan Shipbrokers
TBS Shipping Services
Teekay
The Lion Group
Thoresen & Co. (Bangkok) Ltd.
Thurlestone Shipping
Torm
Torvald Klaveness
Total Gas & Power
Tradition Financial Services
Trafigura
Transcenden Global
Transglobal Chartering
Triworld
United Arab Shipping Company
Veson Nautical Corporation
Viterra
Wallem Commercial Services 
Waterfront Chartering
West Asia Maritime
Western Bulk
Worldscale
Zim

 

Booking form

For questions (London, Singapore, New York) please contact Bill Lines.
E: blines@navigatepr.com T: +44 (0)20 3326 8460

For Shanghai bookings please contact Amy Qian       
E:amy@seamasterltd.com
T: +86 021 52069898   M: +86 13817892665
 

 

For single bookings please use the online form below:

 

Freight Derivatives & Shipping Risk Management Booking Form

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