Jin Yu Cheong, Head of Baltic Exchange Asia, participated as a panellist on a high-profile container panel at Hong Kong Maritime Week 2024, which was held from 17 to 23 November. In the panel, titled "Container Freight Futures: Finally, hedging against volatility," Jin highlighted the unprecedented levels of volatility in container freight rates, which have become a significant concern for market participants. Other speakers on the panel, which was organised by the World Maritime Merchants Forum, included representatives from the New York Shipping Exchange, Linerlytica, BANDS Financial Limited, and Worldwide Logistics Group.

He emphasised that Container FFAs, which have been available for a few years, are a critical tool in managing this volatility. "Using derivatives to hedge your exposure is not speculation. In fact, failing to hedge is itself a form of speculation," Jin explained, highlighting the importance of risk mitigation in an increasingly unpredictable market. His insights shed light on how these financial instruments can provide stability and predictability for industry players navigating the complex dynamics of container shipping.

We would like to extend our sincere gratitude to the organisers for inviting Jin to participate in this insightful panel on such an important topic. Baltic Exchange is proud to highlight the continued importance of Hong Kong in the global maritime industry, as evidenced by the excellent Hong Kong Maritime Week and its ranking of fourth in our most recent Xinhua report. Looking ahead, we are eager to continue fostering strong collaboration with the maritime sector and our Members in Hong Kong and across Asia.