2008 FREIGHT DERIVATIVE TRADING VOLUMES UP
Figures compiled by the Baltic Exchange reveal that the volume of Forward Freight Agreement (FFA) trades increased in 2008. Dry trading volumes grew by 15% on the previous year whilst tanker FFA volumes were up 14%.
Total reported trade volume in the dry bulk FFA market for 2008 was 2,139,382 lots (where a lot is a day’s hire of a vessel or 1000 metric tonnes of ocean transportation of cargo). 58% of all dry trades were cleared in 2008, up 30% on 2007.
In the tanker market FFA volumes were estimated to be 427,121,494 tonnes traded. Cleared business is thought to represent 71% of all volume.
However, trading volumes in the last quarter of 2008 were down in both the dry and wet markets. In Q1-Q3 an average of 46,053 lots were traded weekly in the dry market with 53.5% cleared, compared to 28,349 lots traded and 81.5% cleared in Q4. For tankers in Q1-Q3, an average of 476 trades were transacted per week of which 77% were cleared. In Q4 tanker trades dropped to an average of 311 per week, of which 87% were cleared.
Detailed data
Dry 2008
| Capes | Panamax | Supramax | Handysize* | Total | |
| OTC | 295,179 | 503,945 | 93,639 | 3,558 | 896,311 |
| Cleared | 463,481 | 652,575 | 119,086 | 7,929 | 1,243,071 |
| Total | 758,660 | 1,156,520 | 212,725 | 11,487 | 2,139,382 |
| % by sector | 35.5% | 54.1% | 9.9% | 0.5% |
*= handysize volumes first reported on 21/07/2008
Dry 2007
OTC:1,338,514
Cleared:530,088
Total:1,868,601
Tanker 2008
| No of trades | Volumes in MT | $ value of trades | |
| OTC | 4,756 | 124,866,494 | 2,601,223,398 |
| Cleared | 17,840 | 302,255,000 | 6,181,045,551 |
| Total | 22,596 | 427,121,494 | 8,782,268,949 |
| % cleared | 79 | 71 | 70 |
Tanker 2007
| No of trades | Volumes in MT | $ value of trades | |
| OTC | 7,139 | 200,880,440 | 3,384,223,690 |
| Cleared | 6,212 | 173,990,000 | 3,345,291,182 |
| Total | 13,351 | 374,870,440 | 6,729,514,872 |
| % cleared | 46.5 | 46.4 | 49.7 |
For further details please contact Bill Lines, Navigate PR.
T: +44 (0)7970 730521
E: blines@navigatepr.com
Notes to editors
The figures were compiled by the Baltic Exchange and based on submissions from:
Dry
Banchero Costa
BRS Futures
Clarkson Securities
Eugene Futures
FIS
GFI Group
Icap Hyde
Imarex
LCH Clearnet
NOS Clearing
Pasternak Baum & Co
SGX – Singapore Exchange
SSY
Yamamizu
Tankers
Clarkson Securities
Eugene Futures
GFI Group
Icap Shipping
Imarex
TP Braemar
SSY
LCH Clearnet
NOS Clearing
SGX – Singapore Exchange
The Baltic has been publishing reported dry FFA trading volumes since Q3 2006 and has been publishing reported dry FFA volumes on a weekly basis since July 2007. Tanker FFA volume estimates have been available on an annual basis since 2006 and quarterly since 2008.
The Baltic Exchange
The Baltic Exchange is the world's only independent source of maritime market information for the trading and settlement of physical and derivative contracts. Its international community of over 550 members encompasses the majority of world shipping interests and commits to a code of business conduct overseen by the Baltic.
Baltic Exchange members are responsible for a large proportion of all dry cargo and tanker fixtures as well as the sale and purchase of merchant vessels.
