Liquidity flows back into freight derivatives

Freight derivatives: on the way up

Dry bulk freight derivatives have been seeing a pick-up in activity since September, following a disappointing period of low liquidity and rock-bottom prices, say market participants.

During the past two years, forward freight agreement (FFA) contracts suffered from lacklustre volumes due to meagre prices and low volatility in the underlying freight market. Analysts say those conditions came about due to an overhang of vessels commissioned prior to the 2008 financial crisis, which entered the ma

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