UBS launches freight market investor index

Investment Bank UBS has launched the UBS Blue Sea Index (UBS-BSI), the first tradeable investment index in dry freight derivatives.

The index will track the price of forward freight agreements (FFAs) for three different dry bulk carrier types, which each hold a different weighting: 50% is allocated to the Panamax Time Charter Index, 40% to Capesize and 10% to Supramax.

The dry (cargo) freight derivatives market has exploded in value in the past five years, going from $10 billion in value to a proj