Full steam ahead for FFAs

Interest in the freight derivatives markets is on the rise once again. After suffering flagging volumes from mid-2004 through to early 2006, trade has picked up in both wet and dry markets over the last year.

Rising volumes of forward freight agreements (FFAs) can undoubtedly be attributed to the spread of clearing, which has attracted more participants into the market and in turn opened up new opportunities. As well as giving smaller players with poorer credit ratings a way in to the market,