The state of freight

Freight derivatives

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Appetite for raw materials from emerging markets, in particular China and India, has long been deemed partly responsible for dragging up the cost of oil and base metal prices to record highs. But the rapid growth of these economies has had another, perhaps less obvious, effect - it has helped push up prices for the ships that deliver these commodities.

With the cost of freight rocketing, associated activity in the derivatives market has also picked up. Total reported trade volumes in the dry bul