The freight derivatives markets for both tankers and dry cargo vessels saw increased traded volumes in 2020, according to data released by the Baltic Exchange. 

Tanker Forward Freight Agreement (FFA) volumes were up 31% on the previous year, reaching 603,261 lots, with a daily record of 33,677 lots achieved on 16 March at a time when Time Charter Equivalent earnings for VLCCs exceeded USD 275,000.  

Dry FFA volumes hit 1,548,127 lots, up 17% on 2019. Options trading in the dry market hit an all-time high, up 37% on the previous year to 318,183.

One lot is defined as a day’s hire of a vessel or 1000 metric tonnes of ocean transportation of cargo. 

Commenting on the figures, Baltic Exchange Chief Executive Mark Jackson said:

"2020 was another impressive year for the freight derivatives market. Underpinning these volumes are volatility, trust in the Baltic Exchange’s settlement data and increased participation by owners, charterers and traders. Last year both the dry bulk and tanker markets experienced big swings amid the IMO 2020 fuel change, collapse in oil price and Covid-19 pandemic. The previous 12 months saw 1.5 million dry FFAs traded, representing growth of around 70% since 2012."

 

Capesize

Panamax

Supramax

Total Futures

Total Options

2020

588,979

736,596

222,552

1,548,127

318,183

2019

532,899

662,878

171,070

1,367,252

232,606
 

Clean

Dirty

Total

2020

238,102

365,159

603,261

2019

170,499

289,865

460,364

ENDS

For further details please contact Alex Wood.

E: [email protected]

T: +44 (0)77305 35104

About the Baltic Exchange

The Baltic Exchange represents a global community of shipping interests. These include shipowners, charterers and shipbrokers who are collectively responsible for handling a large proportion of the world’s dry cargo and tanker fixtures, freight derivative trades as well as the sale and purchase of merchant vessels.

EU authorised benchmark administrator the Baltic Exchange is regulated by the UK’s Financial Conduct Authority (FCA) pursuant to the EU Benchmark Regulation. It is the trusted provider of data for the settlement of physical and derivative freight contracts, underpinning risk management tools for the shipping and transportation markets.

Founded in 1744, the Baltic Exchange is headquartered in London with regional offices in Singapore, Shanghai, Athens, Stamford and Houston.

In 2016 the Baltic Exchange was acquired by Singapore Exchange ("SGX").

Baltic Exchange services:

·  Daily benchmarks for dry, wet, container and gas freight markets

·  OPEX, S&P, ship recycling & forward assessments

·  Air cargo assessments

·  Escrow and dispute resolution support

·  Executive training via the Baltic Academy

·  Networking for shipping professionals