Freight markets have traditionally been very sensitive to changing geopolitical dynamics. Spiking freight rates due to trading disruptions, such as those seen in the Middle East Gulf this year, are causing more players to seek out methods to manage their risk and limit their exposure to these rising freight rates.

Forward Freight Agreements (FFAs) continue to be the tool of choice for many searching for hedging opportunities within the FFA market as part of their day-to-day risk management strategies. FFAs are available Over-The-Counter for the dry, tanker, LPG, LNG and container markets, and are based on the spot freight indices produced by Baltic Exchange for each respective trade

Throughout its year-long programme, the Baltic Academy is educating players across the shipping and finance sectors about the importance of FFAs to manage their risk and make more informed decisions, as well as how to trade FFAs effectively in the current market.

Baltic Academy's lecturers Amir Alizadeh-Masoodian and Nikos Nomikos from Bayes Business School show how the Baltic Exchange and the Baltic Academy is doing its part to educate the shipping industry and keep them aware of how FFAs can be used to navigate the challenges of fluctuating freight rates.

Find out more about Forward Freight Agreements and how Baltic data is used to underpin the freight derivatives market by clicking here.

Interested in finding out how Baltic Academy can keep you up-to-date on FFA strategies? Click here to access the Academy today through our series of in-person courses and our e-learning platform.