Freight Derivative Trade Volumes Up In 2018

56

According to the figures compiled by the Baltic Exchange the overall volume of the Forward Freight Agreement (FFA) trades increased in 2018, reports Dry Bulk Magazine.

Freight derivative volumes in the tanker market rose by 20% in 2018 hitting 321 962 lots, volumes in the dry market rose 1.4% to 1 196 929 lots, its strongest performance since 2008, while dry options volumes rose by 44% to 268 976 lots, finding similar levels to 2016. One lot is defined as a day’s hire of a vessel or 1000 t of ocean transportation of cargo.

On the dry bulk side

  • Panamax volumes grew by 10% and now account for nearly half (48%) of all dry FFA trades.
  • Capesize volumes were down slightly on 2017, dropping 4.5% to 481 725 lots.

For dry options

  • Panamax volumes grew by 65% to 82 987 lots, now accounting for nearly a third (31%) of all trades.
  • Capesize volumes improving 37% to 182 575 lots to take a 68% share of the total.
  • Supramax lots were down 3.5% (3414 lots) on 2017 levels, accounting for the final 1% of the 2018 total.

2018 vs 2019

  1. Open dry interest stood at 207 891 lots on 2 January 2019, up 25% on 2 January 2018.
  2. Dry option open interest is also up with 185 724 lots open on 2 January 2019, up 57% on 2 January 2018.

 

For tankers, dirty trade volumes were up 53% on the previous year reaching 191 224 lots. Much of this growth took place in the final quarter of 2018 when an average of 5691 lots was traded each week. Clean volumes for the year were down 10% at 130 738 lots. Open interest for tankers stood at 50 962 lots on 2 January 2019.

Did you subscribe for our daily newsletter?

It’s Free! Click here to Subscribe!

Source: The Dry Bulk Magazine

 

 

LEAVE A REPLY

This site uses Akismet to reduce spam. Learn how your comment data is processed.